Deciding Contractual Consequences Of Builds In Advance

While most builds proceed relatively smoothly, given the complexity of projects and the importance of the correct construction sequencing, delays are always possible. So it's best to accept this and agree in advance which causes of delay are permissible, how much delay is acceptable, and how much money will be deducted from instalments when delays occur, and include these factors in the build contract.

Force Majeure

Events beyond the control of the yard are known as force majeure events and these may or may not be defined by law. When they are not, the parties need to ensure that all possibilities are covered and decide what their effects will be.

Typically, the contractual delivery date will be extended, but the parties will need to clarify whether this is in reference to the number of days the force majeure event continued or the affect it had on the project's critical path. And even when a delay is caused by a force majeure event, such latitude should be