QN-019
Stop Work Order
Without additional charge; the seller shall provide Star Engineering Inc, our customers and regulatory authorities access to all facilities involved in this purchase order and to all processes and materials. Star Engineering reserves the right to perform inspections, audits, evaluations, reviews, and/or witness the execution of the processes being performed at the supplier’s facilities in support of this purchase order. This requirement must be flowed down to all outsourced processes and sub-contractors.
Buyer may, at any time, by written notification to Supplier, require Supplier to stop all, or any part of the work called for by the Order for a period of ninety (90) days after the written notification is delivered to Supplier, and for any further period of time that the Parties may agree. The notification shall be specifically identified as a Stop Work Order (SWO) issued pursuant to this clause. Upon receipt of the SWO, the Supplier shall immediately comply with its terms and take all reasonable steps to minimize the incurred costs allowable to the work covered by the SWO during the period of work stoppage.
Within a period of ninety (90) days after a SWO is delivered to the Supplier, or within any extension of that period to which the Parties shall have agreed, Buyer shall either (1) cancel the SWO; or (2) terminate the work covered by the SWO as provided for in “Termination for Convenience” of these terms and conditions.
If a SWO issued under this clause is canceled or the period of that SWO or any extension thereof expires, Supplier shall immediately resume work. Buyer shall make an equitable adjustment in the delivery schedule or Order price, or both, and the Order shall be modified in writing accordingly if (1) the SWO results in an increase in the time required for, or in Supplier’s cost properly allocable to, the performance of any part of the Order; and (2) Supplier asserts its rights to the adjustment within twenty (20) days after the end of the period of work stoppage.
If a SWO is not canceled and the work covered by the SWO is terminated for the convenience of Buyer, Buyer shall allow reasonable costs resulting from the SWO in arriving at the termination settlement. If a SWO is not canceled and the work covered by the Order is terminated for default, Buyer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the SWO.
