Tracking shutdown costs now will determine what you can recover later

""If you've been directed to stop working, you need to do that. You need to wind down operations. You need to tell your subcontractors to stop," said Jeremy Burkhart, an attorney at Holland & Knight. "You need to track everything you're doing and you're documenting everything you're doing.""

"Immediately establish a dedicated cost-tracking system for all shutdown-related expenses. Document everything: emails, phone calls, decisions and their rationale. Send all required notices to the contracting officer, even if they are furloughed. Balance mitigation with readiness. Make defensible decisions about which personnel/resources to maintain. Track invoice submission dates to support Prompt Payment Act claims."

"Companies will need the documentation and the data to recoup costs once the shutdown ends. Contractors should also track invoice submission dates carefully. Under the Prompt Payment Act, the government must pay interest on overdue invoices."

A government shutdown causes phased impacts across legal frameworks, contract administration, and performance rather than an instantaneous stop. Stop-work orders and restart orders drive the most complex and resource-intensive cost-tracking requirements. All cost-tracking must begin immediately upon receipt of a stop-work directive. Contractors should establish a dedicated cost-tracking system, document emails, calls, decisions and rationales, and send required notices to contracting officers even if those officers are furloughed. Contractors should balance mitigation with readiness by making defensible staffing and resource decisions. Careful tracking of invoice submission dates supports recovery and Prompt Payment Act interest claims.

Read at Nextgov.com