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ARTICLE · 24 MARCH 2020

COVID-19: Time To Check Your Construction Contract's Force Majeure Clause

If you are considering submitting a claim in respect of delays caused by the COVID-19 outbreak, or if you have already received notice in respect of the same by contractors or suppliers, it may be worthwhile to consider ...

CanadaReal Estate and Construction

Co-authored by James De Melo, Student-at-Law

If you are considering submitting a claim in respect of delays caused by the COVID-19 outbreak, or if you have already received notice in respect of the same by contractors or suppliers, it may be worthwhile to consider the force majeure clause (or, the absence thereof) in your construction contracts.

A force majeure clause may function to relieve a party from the performance of its contractual obligations when an intervening event outside of the control of either party makes the performance of those contractual obligations impossible. In cases where force majeure clauses have been found to operate, the intervening events in question have typically been something unexpected and beyond the reasonable foresight of the parties.1 A force majeure clause is the part of a contract which says something similar to the same effect as the following:

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