The losses caused by work stoppage and slowdown comply with the provisions on the composition of construction and installation engineering


Regarding the definition of shutdown losses, both the employer and contractor should inspect and settle the affected projects, engineering equipment, and materials that have been suspended in the presence of the supervisor and other witnesses before resuming work, in order to clarify the direct losses of each party.


For the employer, they should actively seek the smooth performance of the contract and promote resumption of work.

In the process of claiming for work stoppage losses, the determination of work stoppage responsibility, the determination of work stoppage time, and the definition of work stoppage losses are the main focus of controversy.

During the shutdown period, both parties should not blindly wait and allow the losses caused by the shutdown to expand.


If the continuation of the shutdown is inevitable, all parties should pay attention to grasping the important time nodes agreed in the contract and make sufficient preparations in advance for relief methods such as contract modification, termination, and claims.

Instead, appropriate measures should be taken, such as timely notification to all parties and self evacuation of personnel and machinery, to reduce their own losses.


Therefore, the loss of work stoppage and idleness should have the priority right to be compensated for the project price.

Regarding the responsibility for suspension of work, regardless of who is responsible, the contractor shall be responsible for the care obligations during the suspension of construction, take necessary measures to ensure quality and safety, and timely submit resumption notices in accordance with the construction project contract to prevent further losses caused by the suspension of construction.

After determining the qualitative and quantitative issues of the determination of suspension responsibility, suspension time, and scope of losses, the court can determine the losses that each party should bear based on the amount determined by the appraisal agency

Yu Zongfa, a lawyer of construction engineering, holds the highest opinion in judging that the slowdown loss of the contractor is in line with the provisions on the composition of construction and installation engineering costs in the Composition of Construction and Installation Engineering Cost Items issued by the Ministry of Housing and Urban Rural Development and the Ministry of Finance, This loss should be included in the project price and belongs to the project price rather than the compensation for damages.

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Regarding the suspension time, all parties involved shall coordinate and handle it in accordance with the principle of honesty and credibility.

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Lawyer’s suggestion: 1.

If no agreement can be reached temporarily, the employer shall have a clear opinion on the suspension and withdrawal, and shall bear reasonable suspension losses.


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