How should contractors respond to a government stop-work order in 2026?

According to FAR 52.242-15, the contractor’s first duty after receiving a written stop-work order is to immediately comply and take all reasonable steps to minimize costs allocable to the stopped work. The order must be specifically identified as a stop-work order issued under that clause. Under the same clause, the contracting officer must, within 90 days after delivery of the order or any agreed extension, either cancel the order or terminate the covered work. FAR 52.233-3 applies the same immediate-compliance rule when the stop-work order follows a post-award protest, and it also states that the government’s termination rights are unaffected. If the order is canceled or expires, the contractor must resume work. If the stoppage increases performance time or properly allocable cost, the contractor may seek an equitable adjustment, but it must assert that right within 30 days after the stoppage ends unless the contracting officer accepts a later submission before final payment. For cost-reimbursement contracts under Alternate I, the adjustment language reaches estimated cost, fee, or both, and other affected contract terms.