Construction Contract Force Majeure Clause Example In Broward
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Be aware that some contracting businesses get force majeure coverage for some projects. Generally, this is an expensive coverage, but you can tailor an “all-risk” builder's risk policy to encompass force majeure events. These are large events that affect a project's completion, such as natural disasters.
Address the impact on performance: Clearly state how the occurrence of a force majeure event will impact the performance of the contract. Specify whether the obligations will be suspended entirely during the force majeure event or if there will be a temporary delay.
The major difference in such cases is that, without a force majeure clause, the party that wants to be released from contract obligations has the burden of proof, which means that this party must prove their argument is correct. If the other contracting parties do not agree, this could lead to litigation.
A Standard Clause for use in a construction contract that allocates the risk of certain unforeseeable events beyond the control of the parties (known as force majeure events), such as acts of God, natural disasters, epidemics, pandemics, government acts, and labor strikes.
Force majeure clause samples 10.2 The Party affected by Force Majeure shall not assume any liability under this Agreement. Section 15.12 Force Majeure. 6.4 If the agreement cannot be performed due to force majeure, the responsibility shall be exempted in part or in whole ing to the influence of force majeure.
Definition of force majeure events As mentioned above, the events have to be unforeseen and beyond the control of the parties. Common examples include natural disasters such as earthquakes, floods, or hurricanes, acts of terrorism, strikes, government actions like new laws or orders, and other significant disruptions.
Sample Language 3 The Parties hereby acknowledge that while current events related to the current epidemic/pandemic are known, future impacts of the outbreak are unforeseeable and shall be considered a Force Majeure event to the extent that they prevent the performance of a Party's obligations under this Agreement.
Force majeure clauses typically identify such events as excusable delays, allowing the contractor a time extension. However, these clauses are typically silent as to responsibility for delay costs and additional direct costs that result from the force majeure event. (h) Strikes or labor disturbances.
Invoking Force Majeure For events to constitute the use of force majeure, they must be unforeseeable, external to contract parties, and unavoidable. Force majeure means “greater force” and is related to an act of God, an event for which no party can be held accountable.
The force majeure clause is a contract provision that relieves involved parties from performing their contract obligations if extreme circumstances or “major unforeseen events” outside of their control arise that would make performing these obligations impossible, inadvisable, or dangerous.
