Commercial Construction Contract Force Majeure Clause Example
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FAQ
In the construction industry, force majeure refers to unforeseen events that affect project timelines and costs. These events may compel contractors to halt work, impacting delivery dates and budgets. A commercial construction contract force majeure clause example allows parties to address these challenges effectively. This ensures everyone understands their rights and duties during extreme circumstances.
Force majeure is a clause that is included in contracts to remove liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations. These clauses generally cover both natural disasters and catastrophes created by humans.
What is an example of a force majeure event? Typical force majeure events include natural disasters (fire, storms, floods), governmental or societal actions (war, invasion, civil unrest, labor strikes), and infrastructure failures (transportation, energy).
Sample 1 - From Service Agreement: The Party whose performance is prevented, hindered or delayed by a Force Majeure Event shall promptly notify the other Party of the occurrence of the Force Majeure Event and describe in reasonable detail the nature of the Force Majeure Event.
Example #2: Broad Force Majeure Clause B ? ?Party A agrees to be excused from any and all obligations under this contract in case of war, terrorism, disaster or riot as declared by the government of [COUNTRY], or national emergency as declared by the United States President.
Re: Notice of Force Majeure As you may know, [IDENTIFY THE FORCE MAJEURE EVENT]. We are writing to notify you that, following our best efforts to remain fully operational during this time, we have no choice but to invoke force majeure, pursuant to [section/clause/article ___] of the Contract.