How to Record Stop Work Order Costs
Accounting for costs incurred during a period when the government issues a formal stop-work order under FAR 52.242-15.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Contract Costs - Idle/Stop Work | Debit | 15,000.00 | - |
| Accrued Salaries and Benefits | Credit | - | 15,000.00 |
💡 Accountant's Note
When a stop-work order is issued, costs should be segregated to facilitate the eventual Request for Equitable Adjustment (REA) for the period of performance delay.
Practitioner & Systems Framework
💻 ERP Architecture
Set up a unique sub-project or work package code in the ERP to capture all stop-work related charges.
⚠️ Audit Flags
Sudden spikes in idle labor charging; DCAA scrutiny of labor floor checks during stop-work periods.
📄 Required Documentation
Formal Stop-Work Order notice from the Contracting Officer (CO) and timecards specifically coded to the delay.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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