The Government Just Told You to Stop. Now What?

Published 2026 | TIKC NewsWire

You are in the middle of performing a contract when an email lands from the contracting officer: stop work immediately. No explanation you can argue with, no warning. It is called a stop-work order, and the government has the right to issue one. Maybe funding is in question, maybe priorities shifted, maybe there is a protest on a related award. Whatever the reason, your contract just froze. What you do in the next few days decides whether this becomes a manageable pause or a loss you absorb out of your own pocket.

What a stop-work order actually is

A stop-work order is a written direction from the contracting officer to halt all or part of the work for a set period. It is not a termination and it is not a punishment. The government uses it to buy time while it sorts something out. Importantly, the clause that lets the government stop you also promises that if the stop was not your fault, you can recover the costs the delay caused and get your schedule adjusted. The protection is real, but only if you handle the pause correctly.

The first 48 hours matter most

When the order hits, your instinct might be to keep a few people working to stay on track. Do not. A stop-work order means stop, and continuing to incur costs after it can mean you eat those costs yourself. Instead, stop the work the order covers, and then immediately start protecting your position: document the date and time you received it, record where the work stood, and capture the costs the stoppage is creating, like idle employees, equipment you cannot redeploy, and commitments you cannot cancel.

How the pause ends

A stop-work order does not last forever. Within the period set, the government has to do one of two things: tell you to resume, or convert the stop into a termination. If it tells you to resume, you are entitled to an adjustment for the delay and added costs. If it converts to a termination, your recovery shifts to the termination settlement process instead. Either way, the records you kept during the freeze are what turn your disruption into dollars you can actually claim.

What to do now

• Stop when told. Halt the work the order covers right away, and do not keep incurring costs on it.
• Timestamp everything. Record exactly when you got the order and what the work status was at that moment.
• Track your delay costs. Capture idle labor, stranded equipment, and commitments you cannot cancel during the pause.
• Keep talking to the CO. Stay in contact so you know whether a resume or a termination is coming.
• Prepare your adjustment. When work resumes, be ready to request the time and cost adjustment the clause allows.

A stop-work order feels like being punished for something you did not do. It does not have to cost you. The clause exists to make you whole for a delay the government caused, and the contractors who recover are the ones who stop cleanly and document everything from the first hour. Freeze the work, protect your records, and claim your adjustment, and the pause becomes a line item instead of a loss. Brick by brick.

FAQ

Can the government really make me stop with no notice?

Yes. The stop-work clause in your contract gives the contracting officer the right to direct you to halt work for a defined period. It is not a breach, but it does come with the promise of a fair adjustment if the stop was not your fault.

Will I get paid for the downtime?

Generally you can recover the added costs the stoppage caused and get your schedule extended, as long as you stopped as directed and documented the impact. Costs you incur by ignoring the order are usually on you.

How long can a stop-work order last?

It runs for the period stated in the order. Within that time the government must either tell you to resume or terminate the affected work, so the freeze is temporary by design.

What if it turns into a termination?

If the government converts the stop-work order into a termination, your recovery moves into the termination settlement process, where you document completed work and incurred costs to be paid fairly.

Sources

Federal Acquisition Regulation. (2026). 52.242-15, Stop-Work Order.

Federal Acquisition Regulation. (2026). Subpart 42.13, Suspension of Work, Stop-Work Orders, and Government Delay of Work.

This article is general information, not legal advice.