As the Novel-Coronavirus (“COVID-19”) continues to cause disruption to every aspect of society, the business world and the economy-at-large, nearly every country, state and county has issued unique lockdown, “shelter-in-place,” and similar types of orders restricting the way all of us interact with each other and perform work. As a result, some construction project owners have begun issuing Stop Work Orders and closing projects down during an uncertain time period. Inconsistencies in treatment and messaging, however, are leaving many people and businesses confused about how to respond.
The attorneys at Shutts & Bowen continue to closely monitor the rapid developments taking place in connection to the current crisis. Our attorneys offer guidance to clients in these uncertain times on all areas impacted by the COVID-19 global pandemic, from construction and development related issues, such as force majeure, to nuanced issues involving government, government contracting and loan programs; federal and state tax-related questions; significant labor and employment questions and concerns; all aspects of financial services and real estate matters; and health care. This blogpost is part one in a series of two, focusing specifically on time-sensitive construction industry issues related to Stop Work Orders, Construction Project Site Abandonment, and what you – whether you are an owner, contractor, designer, trade, insurer or finance-provider – need to do to protect yourself and others.
First, what is a Stop Work Order? It is a contractual legal device used in the construction industry to suspend work until a decision or an agreement between the contracted parties is able to be reached. Stop Work Orders can be issued for a myriad of reasons and by various parties, including, governmental agencies, inspectors, project owner representatives, developers, and contractors. Stop Work Orders can be issued for anything from legal noncompliance, such as failure to comply with workers compensation law, violations of the Occupational Safety and Health Act, or unlicensed contracting, to hazardous conditions affecting the project and continued work to payment disputes.
The overarching purpose of Stop Work Orders is typically to minimize the risk of a breach of contract, particularly involving payment disputes, to avoid the possibility of immediate injury or bodily harm, or to deal with an unanticipated condition related to the project site, such as the presence of hazardous materials. Stop Work Orders will typically provide the following information:
- A description of the specific activities being suspended and why.
- Clear instructions or directions for the party being ordered to stop work regarding pending material orders, deliveries, permits and inspections, interruption of services and work, etc.
- Direction on how to manage work flow-down, including communications to trades, material suppliers, and other subcontractors, and related to concerns such as overhead and general condition costs, de-mobilization, re-mobilization (if known), and site security.
Once issued, a Stop Work Order requires the receiver to immediately halt all work-related operations. And no matter the reason for the Order or the existence of valid disputes or countervailing arguments – or whether the cause is something like what everyone is going through right now in response to COVID-19 – it is imperative that all parties involved in an active construction project take immediate action to avoid exposure to significant liability by causing an unsafe condition or hazard. If you are the recipient of a Stop Work Order, you should contact a construction attorney immediately to ensure you don’t run the risk of breaching any portion of your agreement OR being in danger of civil fines or even in some cases criminal penalties.
If you are issued a Stop Work Order, your immediate next steps matter. It is recommended that the affected party take the following actions to comply with the order while preserving your rights:
- Contact your construction attorney, to determine whether you must stop all work activities immediately, and especially if you believe that the Stop Work Order has been improperly issued.
- Take action to avoid creating an unsafe condition or hazard (for more information on how to do this, see part 2 of this blog series)
- Proactively discuss the scope, intent, and logistics of the Stop Work Order with the issuing party.
- Consider whether contract termination will be required or is appropriate.
- Work through the de-mobilization logistics, particularly with a workable plan for re-mobilization, if and when that should become available.
- Make certain all parties agree (or acknowledge) when and for how long the Stop Work Order applies, how it is to be extended (if need be) and how it will be lifted (e.g., by expiration of certain time, written notice, or some other occurrence or event).
- And finally, be sure to document all efforts and responses related to the Stop Work Order.
It is critically important to have a paper trail that serves as evidence of all decisions made and actions taken in response to and compliance with a Stop Work Order. This applies as well to written documentation and proactive communications to all sub-trades, suppliers, and other service providers. Be sure to track all related expenses and to be able to document and source every impact (financial or otherwise) related to compliance with the Stop Work Order.
Whether the basis for a Stop Work Order arises from a payment dispute, unsafe working conditions, imminent hazards like COVID-19, or something else entirely, it is imperative that you take action quickly to protect yourself, your employees, and others.
Search Blog
Follow Us
Recent Posts
- What You Need to Know About the U.S. Department of Transportation’s Build America TIFIA Loan
- Breaking News: Federal Judge Blocks Nationwide Implementation of the FTC’s New Rule Banning Noncompete Agreements
- September 4th is Almost Here: How Employers Can Prepare for the Upcoming Effective Date of the FTC’s Non-Compete Rule
- Florida’s New Statutory Home Warranty: What Home Builders Need to Know
- Orange County Proposes Temporary Suspension Ordinance on New Development Applications
- Raising the Roof: The U.S. Department of Labor Announces Rule Raising Salary Thresholds for Overtime Exemptions
- New Guidelines Anticipated Following HHS’s Health Cybersecurity Concept Paper
- SECURE 2.0 and Protecting Your Designated Beneficiaries
- Florida Appellate Court Provides Further Guidance Regarding New Summary Judgment Rule
- Pith? Perfect for Lienors, Not So Much for Landlords: Protecting Rights When Improvements Are Made to Commercial Tenancies
Popular Categories
- Employment and Labor
- Construction
- Business of Real Estate
- Litigation (Labor & Employment)
- Construction Litigation
- Competition
- Landlord-Tenant
- Real Estate Law
- Public Private Partnership
- Cybersecurity
- Intellectual Property
- Construction
- Appeals
- Litigation
- Development/Land Use
- Contracts
- Public Finance
- Trusts and Estates
- Data Security
- Business
- Supreme Court
- Privacy
- Technology
- Litigation (Appellate)
- IP Litigation
- Patents
- Business
- Regulatory Compliance
- Florida Government Contracts
- Health Care
- Foreclosures
- Trademark
- Contracting
- Financial Institutions
- Compliance
- Estate planning
- International Dispute Resolution
- Property Tax
- Conveyances
- Florida Public Contracts
- Government Contracting
- Government Contracts
- Government
- Lease
- Appellate Blog
- Patent Office
- Insurance
- Wealth planning
- Federal Government Contracting
- Cyber fraud
- Florida Bid Protests
- Public Contracts
- Infringement
- Proposal Writing
- Public Bidding
- GAO
- International Arbitration and Litigation
- Arbitration
- Bid Protest
- International
- Americans with Disabilities Act
- Restrictive Covenants
- Grant Writing
- Copyright
- Title
- Promissory Notes
- Small Business
- Florida Procurement
- Public procurement
- Consumer Privacy
- PTAB
- General Liability
- Technology
- International Arbitration
- Liens
- Liens and encumbrances
- Creditor's Rights
- Bidding
- Attorneys' Fees
- Inter Partes Review
- Power Generation
- Consumer Protection
- Regulation
- Contracting
- Government Vendor
- State Government Contracts
- Venue
- Ad Valorem Assessments
- Florida Administrative Law
- Attorneys' Fees
- Florida Rules of Appellate Procedure
- Bankruptcy
- Florida Public Procurement
- Russia-Related Arbitration
- Mortgages
- Eviction
- FINRA
- Record on Appeal
- Rehearing
- Loan guaranties
- Patents - Assignor Estoppel
- Dispute Resolution
- Statute of limitations
- Statute of repose
- Maritime
- Liens
- Damages
- Briefing
- Patents - Obviousness
- Request for Proposal
- Department of Labor
- Trade Secrets
- Commercial Brokerage
- Bid Writing
- Florida Bidding Strategies
- Renewal
- Attorneys' Fees
- Florida County Lands
- Florida Economic Incentive Packages
- Jury Instructions
- Stay
- Design Professionals
- Certiorari
- email hacking
- Forum Selection
- Offers of Judgment
- Prevailing Party
- Settlements
- Assignment of Contract
- Assignment of Proceeds
- Lis Pendens
- Banking
- Designer Liability
- Finality
- Fintech
- Appellate Jurisdiction - Deadlines
- Evidence
- Evidence
- Expert
- Expert Science
- Federal Rules of Appellate Procedure
- Federal Supply Schedule
- Florida Public Records Law
- Marketing/Advertising
- Mootness
- Preservation
- Socio-Economic Programs
- Sunshine Law
- Unlicensed Contracting
- Veteran Owned Business
- Partnerships and LLCs
- Homestead
- Standing
Editors
- Of Counsel
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Associate
- Partner
- Partner
- Partner
- Partner
- Senior Associate
- Partner
- Associate
- Partner
- Senior Associate
- Partner
- Associate
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Of Counsel
- Senior Associate
- Partner
- Associate
- Partner
- Partner
- Associate
- Partner
- Partner
- Partner
Archives
- September 2024
- August 2024
- June 2024
- May 2024
- February 2024
- November 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- October 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016