All construction projects have specific terms that are outlined in the contract between the contractor and the client. This legal document covers a variety of terms, including the budget, scope of the project, intended materials and a general timeline.
While contractors can use their experience and the information available at the time to set the timeline, there are sometimes things out of their control that can alter that timeline. Contractors will include a force majeure clause in the contract to cover those situations.
Force majeure clauses address excusable delays
A force majeure clause includes delays caused by natural disasters, such as hurricanes or floods. It can also cover things like labor strikes, customs delays or government-imposed shutdowns. The underlying key is that the event isn’t one that is foreseeable and that it is outside of the contractor’s control.
The scope of what’s covered in a force majeure clause is determined by the language of the contract. Some agreements will define specific excusable delays, but others will have a broader scope. It’s critical that both parties understand exactly how the force majeure clause impacts the project. Any terms in the contract that might be misconstrued should be clarified before the document is signed.
It’s critical to note that even if there is a force majeure clause, there are still times when delays may become problematic. This is often the case when the contract is ambiguous. Contractors should work closely with someone to ensure that the contracts they use with clients contain specific terms and clauses that don’t leave room for guesswork. This can help to protect them as they complete projects.
