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  • Question

    Is there a clause that precludes a contractor from suspending work soley because of delayed payment? In this case if our security team shows up at the site and not be permitted to use the facility what are the Government's options?


    Answer

    Suspending work for late payments is not an option the contractor has-this would constitute a breach of contract on its part. You may want to have your legal office draft a letter for the contracting officer advising the contractor of this position, and that in the future any such threat will  be considered an anticipatory breach of contract or repudiation of the contract which may lead to a termination for default/cause.
     

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