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Stop Work Order

Purpose

A Stop Work Order  is a formal directive issued by a sponsor - or flowed-down from a pass-through entity - requiring the immediate suspension of all or part of the work under a contract, without terminating the contract.

The order will specify an effective date beyond which the contractor may not perform. Costs incurred after this date are generally unallowable, unless they are unavoidable and justifiable.

By default, a stop work order may remain in effect for up to 90 days, after which the sponsor must take one of the following actions:

  • Authorize resumption of work
  • Extend the stop work period
  • Terminate the contract

 

Applicability

  Upon receipt of a stop work order, the Principal Investigator (PI) and the University must comply with its terms and take all reasonable steps to minimize costs associated with the affected work during the period of work stoppage.

Instructions

Immediate Actions Upon Receipt

  1. PIs must immediately cease initiating new grant-related activities and expenditures, unless necessary for patient safety or animal welfare.

    This includes halting:
    • New purchases
    • New contracts
    • Personnel efforts
    • Other costs, where feasible

Costs incurred prior to the effective date - such as completed work or non-cancelable commitments - are generally reimbursable.

Required Modifications

  1. PI Initiated Orders: The PI must immediately work with their department administrator to submit a modification via eAward to OSP. 
    1. The request should:
      1. Update project end dates
      2. Revise the budget and budget end dates
      3. Suspend any applicable subawards
        • If subawards are involved, a separate eAward modification, via eAward, must be submitted for each subaward.
        • Upon receipt, OSP will issue corresponding stop work orders to subawardees with the same effective date.

          Failure to issue Stop Work Orders to subawardees may result in unreimbursed costs for the University. 
  2. OSP Initiated Orders: If OSP receives a stop work order directly from the sponsor, it will. 
    1. Notify the PI immediately
    2. Initiate and submit the eAward transaction
    3. Inform the PI and department administrator via eAward
  3. Additional PI/Department Responsibilities: Depending on the scope of the stoppage, the PI/department may need to:
    1. Complete any work not subject to the stoppage
    2. Cancel or redirect commitments for personal services extending beyond the stoppage date
    3. Refrain from placing new orders, unless necessary to complete unaffected work
  4. Next Steps Within 90 Days: Within 90 days after the stop work order - or any agreed extension - the sponsor must: 
    1. Cancel the stop work order, allowing work to continue
    2. Extend the stop work order
    3. Terminate the contract

      If the order is canceled or expires: 
        • The University may resume after submitting a follow-up eAward modification, which must be processed by Grants and Contracts Accounting (GCA) and marked as "complete". 
        •  For subrecipients to resume work, the PI and/or department must submit a follow-up eAward modification for each subaward.
  5. Adjustments and Termination: The PI may request adjustments to the period of performance and/or budget if:
    1. The stoppage results in increased time or costs (e.g., rehiring/training staff)
    2. The University asserts its right to an adjustment within 30 days after the stoppage ends

      If the sponsor terminates the contract, the University must submit a termination proposal in accordance with the contract's termination clause.
  6. Sponsor Decision Notification: Once the sponsor decides to lift the stop work order or terminate the award: 
    • OSP will notify the PI immediately
    • If the PI receives the notification directly, they must:

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Last Updated: 9/29/25