Navigating Federal Contract Terminations for Convenience + Helping Talent with New Opportunities
With the new administration moving forward with widespread federal contract terminations, many contractors are facing unexpected challenges. If you receive a Termination for Convenience (T4C), it’s important to act quickly to protect your business and ensure a fair settlement. Below are the key steps you should take if your contract is terminated.
Immediate Actions:
Verify the Email: Your Contracting Officer is the only person that has the authority to tell you to stop work on your contract.
Cease Work: Stop all work on the terminated portion of the contract and instruct your team to halt further efforts.
Notify Subcontractors: Inform all subcontractors and suppliers immediately to prevent unnecessary costs.
Protect Government Property: Secure and properly store any government-furnished equipment or materials in your possession.
Financial and Administrative Steps:
Track Termination Costs: Keep a separate record of all costs related to the termination process.
Prepare Inventory Schedules: Compile a detailed list of materials, equipment, and work completed for submission.
Submit a Settlement Proposal: File a claim for reimbursement of incurred costs within the required timeframe. We would suggest using an attorney, especially as legal costs can possibly be submitted as part of the settlement.
Ongoing Obligations:
Continue Non-Terminated Work: If only part of your contract is canceled, ensure that remaining work continues as required.
Assist Subcontractor Settlements: Help your subcontractors resolve their claims and ensure they get paid for completed work.
How to Prepare Now: With contract terminations increasing, it’s crucial to be proactive. Review your contracts to understand termination clauses, document all work and expenses thoroughly, and maintain strong financial reserves. Keeping clear records and being prepared will help you respond quickly if a termination occurs.
With contract terminations on the rise, preparation is key. Review termination clauses in your contracts, document all work and expenses, and maintain strong financial reserves to respond effectively if a termination occurs.
At the same time, these shifts in the federal marketing communications landscape have led to unexpected layoffs of talented professionals. We know how difficult this period can be, and we want to help. If you’re exploring new roles or looking to stay informed about industry openings, we encourage you to fill out this form. We are compiling a database of experienced professionals in strategic communications, creative, media, research, digital engagement, and related fields, which will be shared with clients and companies seeking top talent. This initiative is completely free—we are not charging fees or profiting in any way. Our goal is simply to support our colleagues by connecting them to new opportunities.
If you’re affected by contract terminations or searching for your next role, we’re here to help.