Construction contracts and the Queensland floods

Events of superior force like the devastating Queensland floods are often described in construction contracts as events of force majeure, and may entitle both principals and contractors to relief under the contract.

Force majeure is a creature of contract, and therefore it is imperative that parties to construction contracts affected by the Queensland floods carefully review their contracts to determine how a particular contract responds to an event of force majeure. If force majeure is not addressed, parties will need to review the usual extension of time and cost provisions to determine whether any entitlements to relief exist. In doing so, parties may be required to perform their contractual obligations as far as reasonably possible, and to follow the contract strictly in relation to notification and other requirements.