Things to Know About Force Majeure Clause in Construction Contracts

Force majeure clause is one of the important clauses in any construction contracts. As a contractor or even as a employer it is important to check and include this clause in your contract document before signing the agreement. Force majeure clause helps both contractor and employer to avoid many construction disputes.

What is force Majeure?

Force majeure clause is also known as act of god clause. This clause describes the events that are possible unforeseen by the contractor or employer. Further explained, these events are beyond the control of both contractor and employer. However such events can cause delay in construction project delivery. To find more details, read this article about Force Majeure clause in constructions contracts written by Eng. AmilaGamage. We found it as informative.

What do you want to know about Force Majeure clause?

As a construction professional, it is important to understand the force majeure clause and how to use it in your project. This clause avoids many construction disputes and therefore it has benefits for the parties to the contract.

Below are the important things that you should understand. In case if you don’t know these about the clause, then it is not easy to apply the clause for your contractual situations. 

When it is a claim under force majeure clause, then you will miss the opportunity to claim it. For example, current COVID-19 situation was unexpected. There are many claimable situations under Force Majeure clause as COVID-19 is unexpected. Further covide-19 has done a great damage to the construction sector. Most sites are shutdown when the cities are locked down. But don’t worry about such impact of COVID-19 pandemic on your construction projects as you can submit your EOT claim with the provisions of Force Majeure clause. But, it is important that you understand the clause.

When you use Force Majeure clause for your EOT claim it is also important to understand your entitlement of claiming costs. In general you cannot claim costs or losses due to the unexpected event. You can only claim for extension of time. The loss you have to bear. But do you know that you save money from your liquidated damages? When you grant extension of time you don’t have to worry about project delay. Make adjustments for your existing project program and accelerate your project in order to complete within the given period.

 

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