Construction Contracts Force Majeure In Chicago

State:
Multi-State
City:
Chicago
Control #:
US-00462
Format:
Word; 
Rich Text
Instant download

Description

The Construction Contracts Force Majeure in Chicago form is designed to outline the essential elements of a construction agreement, particularly in the context of unforeseen events that may impact project timelines and completion. It includes sections detailing the scope of work, work site, necessary permits, and clarifications regarding soil conditions that may affect construction. The form emphasizes the importance of insurance and liability, requiring contractors to maintain essential coverage and indemnify the owner against issues that may arise. It allows for changes in the project scope through formal change orders but specifies that any additional costs incurred must be borne by the owner. Target users, such as attorneys, partners, owners, associates, paralegals, and legal assistants, will find the document useful for structuring clear agreements that can safeguard against potential legal disputes emerging from performance delays or unforeseen circumstances. The straightforward format encourages clarity and understanding, making it appropriate for both legal professionals and individuals with limited legal knowledge.
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FAQ

A "force majeure" clause (French for "superior force") is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible.

Either Party shall be excused from performance and shall not be in default in respect of any obligation hereunder to the extent that the failure to perform such obligation is due to a Natural Force Majeure Event.

Exhaustive, of examples of force majeure events. Force majeure events generally can be divided into two basic groups: natural events and political events. These may include earthquakes, floods, fire, plague, Acts of God (as defined in the contract or in applicable law) and other natural disasters.

Force majeure is a contract law concept in Illinois. A force majeure clause is a contract provision that excuses a party's performance of its obligations under the contract when certain usually express circumstances arise beyond the party's control.

Commonly referred to as “acts of God”, force majeure events are unforeseeable, exceptional or out with the control of contracting parties. Examples include natural disaster, terrorism, industrial strike action, fire and pandemic/epidemic events such as Covid-19.

If a contract is silent on force majeure or if the event does not meet the definition of force majeure under the parties' contract, a party's performance may still be excused in certain circumstances under the doctrine of commercial impracticability.

In the construction industry, force majeure is a term used to describe insurmountable problems that can affect the completion of your project and the terms of the contract. Another way you may have heard of this is “Acts of God” or “Natural Disasters” when it comes to different types of insurance.

In Clause 19 of the FIDIC 1999 Red2, Yellow3 and Silver4 Books, the term "Force Majeure" is principally identified as being an "exceptional" event or circumstance, beyond the Party's control, and something that it could not have reasonably provided against before entering into the Contract.

What Are Examples of Force Majeure? Events that could trigger a force majeure clause include war, terrorist attacks, a pandemic, or natural disasters that fall under the “act of God” category, such as a flood, earthquake, or hurricane.

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Construction Contracts Force Majeure In Chicago