As of 12:01 am on October 1, 2025, the federal government shut down while Congress negotiates a funding deal. This shutdown will have significant implications for federal construction projects.
- Ongoing Projects: Only work on government projects with existing appropriations can continue.
- Access Restrictions: Limitations to access government facilities or engage government personnel on non-essential projects.
The last government shutdown in 2018–2019 lasted 35 days. It is currently unclear how long this shutdown will continue.
Guidance for Government Contractors:
Government contractors should immediately contact the Contracting Officer (CO) for their project and request written direction on how to proceed during the shutdown.
The government cannot request or authorize work that does not already have appropriated funds. Contractors should not perform unfunded work based on promises of future payment, as the government cannot issue “I.O.U.s” during the shutdown.
Steps Contractors Should Take if their Project is suspended:
- Provide Notice: Notify the CO, as required by the contract, that the suspension may have financial and schedule impacts.
- Document Status: Tour and photograph the project site to record the project’s progress as of the shutdown.
- Update Schedule: Perform a schedule update and submit it to the CO to capture the impact of the shutdown.
- Obtain Written Confirmation: Before suspending or continuing any work, secure written confirmation from the CO regarding funding.
- Track Costs: Develop cost codes for additional work related to site security or demobilization. Require subcontractors to capture additional costs as well. Track and log all delays, disruptions, and expenses stemming from the shutdown.
- Review Contract Clauses: Review the contract for applicable provisions such as stop work orders, funding limitations, or dispute resolution clauses that may guide recovery of costs.
