Natural disasters have taught construction professionals valuable lessons about preparing for the unexpected. These events wreak havoc on construction timelines and budgets. They may even bring construction projects to a halt. That’s where force majeure clauses come in – offering a crucial safety net for all parties involved.
What are force majeure clauses?
Force majeure clauses protect you when uncontrollable circumstances prevent you from fulfilling your obligations. In construction contracts, force majeure clauses typically cover:
- Natural disasters, like hurricanes, floods and earthquakes
- Acts of war, terrorism or civil unrest
- Government actions or regulations
- Pandemics or public health emergencies
With force majeure clauses, you can allocate risk and set clear procedures for dealing with various circumstances.
How force majeure clauses protect construction projects
In Texas, force majeure clauses are especially helpful during hurricane season and supply chain disruptions. When properly drafted, these clauses can:
- Excuse delays in project completion
- Suspend contractual obligations during the event
- Allow for contract termination if the event persists
- Outline procedures for resuming work after the event ends
Without force majeure clauses, your business may face penalties or legal action for failing to meet deadlines, even for circumstances beyond your control.
Key elements to include in a force majeure clause
A well-drafted force majeure clause must clearly define:
- What events qualify as force majeure
- Required notice periods when invoking the clause
- Rights and obligations of each party during the event
- Process for contract suspension or termination
- Timeline for resuming work after the event ends
Courts examine force majeure claims carefully, making precise contract language crucial. So, broad or general language may fail to provide adequate protection should disputes arise.
Seek professional assistance for your contracts
When construction challenges arise from unforeseen events, a strong force majeure clause can make the difference between project success and failure. Working with an experienced construction law attorney will help ensure your contracts include appropriate force majeure provisions. Remember, prevention through proper contract drafting saves you time and money compared to resolving disputes later.