{"id":897332,"date":"2020-04-14T12:05:55","date_gmt":"2020-04-14T18:05:55","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897332"},"modified":"2020-04-14T12:05:58","modified_gmt":"2020-04-14T18:05:58","slug":"stop-work-orders-construction-site-abandonment","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/stop-work-orders-construction-site-abandonment\/","title":{"rendered":"Stop Work Orders and Construction Project Site Abandonment Series: Part 2 \u2013 Construction Project Site Abandonment"},"content":{"rendered":"\n

Michael Kelley | Shutts<\/a><\/p>\n\n\n\n

As the Novel-Coronavirus (\u201cCOVID-19\u201d) continues to cause disruption to every aspect of society, the business world and the economy-at-large, nearly every country, state and county has issued unique lockdown, \u201cshelter-in-place,\u201d and similar types of orders restricting the way all of us interact with each other and perform work. As a result, some construction project owners have begun issuing Stop Work Orders and closing projects down during an uncertain time period. Inconsistencies in treatment and messaging, however, are leaving many people and businesses confused about how to respond.<\/p>\n\n\n\n

The attorneys at Shutts & Bowen continue to closely monitor the rapid developments taking place in connection to the current crisis. Our attorneys offer guidance to clients in these uncertain times on all areas impacted by the\u00a0COVID-19\u00a0global pandemic, from\u00a0construction and development\u00a0related issues, such as\u00a0force majeure<\/em>, to nuanced issues involving government, government contracting and loan programs; federal and state tax-related questions; significant labor and employment questions and concerns; all aspects of financial services and real estate matters; and health care. This blogpost is part two in a series of two, (read part one<\/a>) focusing specifically on time-sensitive construction industry issues related to Stop Work Orders, Construction Project Site Abandonment, and what you \u2013\u00a0whether you are an owner, contractor, designer, trade, insurer or finance-provider<\/em>\u00a0\u2013 need to do to protect yourself and others.<\/p>\n\n\n\n

Construction Project Site Abandonment: What is it?<\/strong> Abandonment of a construction project occurs when a contractor is no longer able to perform the work on a project \u2013 or when a project site has been shut down for an extended period of time without clear direction as to when the work may resume. This can happen for many reasons, including the prolonged existence of a Stop Work Order (please see part one of this series for more information on Stop Work Orders \u2013 link). Given the current pandemic and the uncertainty surrounding decisions to safely resume normal business activities, many projects that were ordered to \u201cstop work\u201d as a result may, at some point in the future, become considered \u201cabandoned.\u201d To prevent project abandonment resulting from prolonged Stop Work Orders largely outside of your control, proactive steps must be taken immediately to keep all parties engaged, prepared, and in regular communication.<\/p>\n\n\n\n

If a contractor is not in a position to start, re-mobilize, or complete work on a project \u2013 in a reasonable amount of time after the conditions that caused the work to stop have been lifted \u2013 this may result in an abandonment that could be considered a breach of the underlying agreement. Abandonment of a construction project without a valid, legal excuse will likely be cause for disciplinary and other legal actions against the contractor.<\/p>\n\n\n\n

If my project has been abandoned, what should I do?<\/strong> When facing a potential abandonment situation, the owner of the project \u2013 or construction manager or design professional tasked with execution and fulfillment of the work \u2013 must take immediate preventative action, as follows:<\/p>\n\n\n\n