N.J. Admin. Code § 7:24A-4.16

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:24A-4.16 - Stop work order

(a) The Department may order that work on a project be stopped for good cause. Good cause shall include, but is not limited to, default by the borrower or noncompliance with the terms of the loan award agreement or where the Department determines it is advisable to suspend work on the project or portion or phase of the project for important program or Department considerations.

(b) A stop work order shall contain:

1. The reasons for issuance of the stop work order;

2. A clear description of the work to be suspended;

3. Instructions as to the issuance of further orders by the borrower for materials or services;

4. Instructions as to action to be taken by the borrower on subagreements;

5. Other suggestions to the borrower for minimizing costs; and

6. A notice of noncompliance pursuant to N.J.A.C. 7:24A-4.14.

(c) The Department may, by written order to the borrower (certified mail, return receipt requested), require the borrower to stop all, or any part of, the project work for a period of not more than 45 days after the borrower receives the order, and for any extension of such period to which the parties may agree.

(d) Upon receipt of a stop work order, the borrower shall immediately comply with the terms thereof and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within the stoppage period or within any extension of such period to which the parties agree, the Department shall either:

1. Rescind the stop work order, in full or in part;

2. Terminate the work covered by such order; or

3. Authorize resumption of work.

(e) If a stop work order is rescinded or the period of the order or any extension thereof expires, the borrower shall promptly resume the previously suspended work. The Department may, in its discretion, make an equitable adjustment to the loan period, the project, or both, and shall amend the loan award agreement in accordance with N.J.A.C. 7:24A-4.3 or make other changes in accordance with N.J.A.C. 7:24A-4.4.

N.J. Admin. Code § 7:24A-4.16