In construction contracts there are many clauses and terms which parties should understand. When you know the meaning behind these contractual clauses then you know how to perform your obligations contractually. You will also understand when to claim and when to avoid damages. Among the contractual clauses Force majeure clause in construction contracts plays a major role as this provides grounds for the claims.
However before you apply the Force majeure clause for your construction project; it is important to understand the legal provisions behind it.You need to know below when you sign any construction contract.
What is force majeure?
The term Force Majeure is used to identify any event that is beyond the control of parties to the contract. This is why such events are also called as ‘Act of God’. Flood, strikes, Civil war are some of the acts of God which is unavoidable by the contractual parties. In such situations most construction projects have to stop work or have to slow down the progress. The slow progress can cause delay in project delivery. Delay in delivery may lead to Liquidated Damages. The employer is entitled to impose liquidated damages if the contractor fail to complete the project within the given time period.
However as a contractor you can submit your Extension of Time claim when you foresee a delay. If granted you will get more time to complete your project which lessen the burden of delay and liquidated damages.
This is where Force Majeure clause is important. Under this clause you are able to claim extension of time if the delay is due to a reason beyond the control of employer or contractor.Covid-19 pandemic is one of the greatest examples of such unforeseen events.
How to claim under Force Majeure clause?
Once you understand the provisions of Force Majeure clause it is important to analyze your site progress and delay. It is also important to understand the provisions from your contract clause. Then you can prepare your claim for EOT and other claims such as prolongation claim.
With your claim it is also important to submit all the evidence that proves the Act of God situation.
