Section 886.315  Stop-Work Orders

a)         The Agency may, for any violation of this Part, issue a written stop-work order requiring the loan recipient to stop all or any part of the project work, effective for a period of not more than 30 days from the date of the order, or for any further period to which the parties may agree in writing. The Agency shall include in any stop-work order a list of the project activities to which the order applies.

b)         Upon receipt of a stop-work order, the loan recipient must comply with its terms and stop the incurrence of costs allocable to the work covered by the order during the period of work stoppage.

c)         No more than 30 days after the date of the stop-work order, or within any extension of that period to which the parties agree in writing, the Agency shall:

1)         Upon resolution of the violation leading to the stop-work order, cancel the stop-work order; or

2)         Terminate the portion of the loan covered by the stop-work order, as provided in Section 886.305 (Loan Termination by the Agency) of this Part.

d)         If a stop-work order issued under this Section is canceled, or the effective period of the order or any written extension thereof expires, the loan recipient shall resume work.

e)         The loan recipient may not obtain payment for costs associated with a stop-work order unless the Agency authorizes payment in writing.