Posts

Showing posts from August, 2015
Image
TOP TEN CONSTRUCTION CLAUSES – PART 4 THE FORCE MAJEURE CLAUSE (HURRICANE SEASON IS UPON US!) This is the fourth in a ten-part series analyzing critical construction clauses.  In this installment, the force majeure clause is examined.  The first three articles addressed: (i) Indemnification ; (ii) Mutual Waiver of Consequential Damages ; and (iii) Liquidated Damages . A. Overview  The phrase “force majeure” derives from the French for a “superior force.” A force majeure clause is a contractual provision allocating the risk if performance becomes impossible or impracticable as a result of an event or effect that the parties could not have anticipated or controlled.  Typical force majeure events include, but are not limited to, acts of nature, such as floods and hurricanes, and acts of people, such as riots, strikes, war, and acts of terror.          The force majeure clause is an important protection device for the contractor because a force majeure event t