Preconstruction — Risk & Contracts

Force Majeure

A clause excusing a party from delay caused by events beyond its reasonable control.

Quick Answer

A force majeure clause excuses a party from performing on time when an event beyond its reasonable control — a natural disaster, war, or similar disruption — prevents performance. In construction it typically grants a time extension rather than money, stopping liquidated damages for the excused delay. What qualifies depends entirely on the clause's specific wording.

The Full Picture

Force majeure exists to answer a fair question: what happens when something outside anyone's control makes on-time performance impossible? Without such a clause, a contractor delayed by a hurricane or a regional shutdown could still be liable for finishing late. Force majeure allocates that specific category of risk by excusing the delay it causes.

The clause names or describes qualifying events — commonly 'acts of God,' natural disasters, war, government action, and other events beyond the parties' control and not their fault. The relief is usually a time extension, not additional payment, though some contracts also address cost. AIA's A201, for example, doesn't use the term 'force majeure' but provides a catch-all excusing delays for causes beyond the contractor's control.

Wording is everything. Courts interpret force majeure by the exact words the parties chose, not their general intent, so whether a given event qualifies turns on how the clause is drafted. Most clauses also require prompt notice: a party claiming relief must notify the other that it can't perform, or it risks losing the protection.

In preconstruction, contractors read the force majeure clause alongside the liquidated-damages and schedule provisions. A narrow clause leaves the contractor exposed to delays it truly can't control; a broad one shifts more of that risk to the owner. Contractors also shouldn't assume force majeure events are automatically covered by insurance — the builder's risk policy and the contract clause are separate questions.

Real Examples

→Time extension: A hurricane shuts the site for ten days; the contractor invokes force majeure and receives a ten-day extension, so those days don't count against the liquidated-damages clock.
→Notice requirement: The clause requires written notice within seven days of the triggering event, so the contractor documents the shutdown immediately rather than raising it months later at closeout.
→Wording dispute: Whether a supply-chain disruption qualifies hinges on whether the clause lists it or only covers 'acts of God,' turning the argument onto the exact language the parties agreed to.

Common Misconceptions

People assume: Force majeure covers any unexpected event.

Actually: It only covers events the clause actually describes, and courts read the wording strictly. A disruption that isn't listed or clearly within the language may not qualify at all, which is why the drafting matters more than the general idea.

People assume: A force majeure event is automatically covered by insurance.

Actually: The contract clause and the builder's risk policy are separate. A clause may excuse a delay while the associated physical loss is still uninsured, or vice versa. Contractors shouldn't assume force majeure and insurance coverage line up.

Does MeltPlan Solve This?

Not directly

Force majeure is a contract clause and a legal doctrine about excusable delay. Drafting, negotiating, and invoking it is legal work, not document review or quantity takeoff, so it sits outside MeltPlan's scope. The contract language and your counsel govern what qualifies and what relief applies.

Frequently Asked Questions

What qualifies as force majeure in construction?

It depends on the clause, but common examples are natural disasters, wars, government actions, and other events beyond the parties' control and not their fault. Courts read the wording strictly, so only events fitting the clause's language qualify.

Does force majeure give a contractor more money?

Usually not. The typical relief is a time extension that excuses the delay and stops liquidated damages for the affected period. Whether any additional cost is recoverable depends on the specific contract, and many clauses grant time only.

What's the difference between force majeure and a differing site condition?

Force majeure covers external events like storms or war that prevent performance. A differing site condition is an unforeseen physical condition at the site itself, such as unexpected rock or groundwater. They're handled by separate clauses with different relief.

Do you have to give notice to claim force majeure?

Almost always. Most clauses require the affected party to notify the other promptly that it can't perform because of the event. Failing to give timely notice can forfeit the relief, so contractors document and report qualifying events immediately.

Related Terms

Liquidated DamagesA pre-agreed dollar amount per day of late completion, set in the contract.Risk Allocation (Construction)Deciding, in the contract, which party carries each of a project's risks.Builder's Risk PolicyProperty insurance covering a project while it's under construction against physical loss.Preconstruction Risk ManagementFinding and assigning a project's risks before ground breaks, while they're still cheap to manage.AIA ContractThe industry's standard family of construction agreements and general conditions.Indemnification ClauseA contract provision making one party cover certain legal liabilities of another.

More Preconstruction — Risk & Contracts Terms

Sources

  1. IRMI — Builders Risk: Acts of God (expert commentary)
  2. AIA Contract Documents — A201 General Conditions of the Contract for Construction
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