Plain English Explanation
This CE is triggered when the PM instructs the contractor to stop work that is already underway, or not to start an activity that was planned. This is sometimes called a 'suspension' or 'stop notice'. The instruction may apply to all of the works or just a specific section.
Reasons for this instruction can include: Client funding issues, planning hold-ups, health and safety concerns, design reviews, interface problems with other contractors, or simply a change in Client priorities. Whatever the reason, if the PM issues such an instruction, you are entitled to a CE for both time and additional cost.
Unlike termination (which is handled elsewhere in the contract), a stop/don't start instruction assumes the works will eventually resume. You should still price and programme the impact of stopping and restarting.
Key Takeaway
A stop instruction is a CE the moment it is issued — price demobilisation, standing time, and remobilisation costs in your CE quotation, not just the direct delay.
What This Means for Subcontractors
Suspension instructions passed down from the main contractor to subcontractors are often the result of a Client instruction at the top of the chain. Ensure your subcontract has a clear suspension mechanism and that the main contractor's obligation to pass on the Client-level CE relief is preserved. Prolonged suspension can also trigger termination rights — check your contract's thresholds.
Common Risks & Disputes
- 1Accepting a stop instruction without notifying a CE, particularly if the reason is presented as 'temporary'
- 2Demobilisation and remobilisation costs being overlooked — these can be significant and must be included in your CE quotation
- 3Prolonged suspension eroding subcontractor leverage and cashflow without formal relief
- 4The PM arguing that the stop was caused by your own default (e.g. a Defect) which is excluded
- 5Failure to price correctly for the cost of maintaining site presence during a stop period
Sources
Related Clauses
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