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(CDR-3552) Suspend Work - "Remain on Standby" - 3 Key Words

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Level: Intermediate
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2020 AACE International Conference & Expo

Abstract: The contract has been awarded and notice to proceed issued.Work has started.The owner issues a suspension of work directive and the contractor shuts down all or a designated portion of the work awaiting the owner’s return to work order.The contractor believes they are entitled to recover all delay and all time related delay damages.Is the contractor right?The owner is liable for the delay damages, right?As Max E. Greenberg commented in 1954 – “It ain’t necessarily so!”This paper examines why owners should have a Suspension of Work clause in contracts and how these clauses work.It identifies what damages are typically owed when an owner suspends all or part of the work and outlines some typical limitations of suspension damages found in many contracts.Additionally, the paper discusses five key court cases decided between 1996 and 2015 that establish the key requirements necessary to collect damages arising from a suspension of work directive.Finally, the paper offers recommendations on what actions contractors should take to protect their recovery of such damages and why these actions may help owners resolve suspension of work claims in the field rather than the court.