Share on LinkedInShare on LinkedIn

ARTICLE · 20 MAY 2015

Force Majeure Events And Contract Clauses

Recent events have again demonstrated the fragility of the network of overseas suppliers for industries ranging from automobile manufacturers to big-box retailers.

United StatesReal Estate and Construction

Recent events have again demonstrated the fragility of the network of overseas suppliers for industries ranging from automobile manufacturers to big-box retailers.  Supply disruptions can be caused by labor disputes at port facilities; by piracy, cyclones or other events that disrupt goods-in-transit; and by natural or man-made events such as earthquakes or armed conflicts that disrupt production or transportation in an overseas country.  Unfortunately, the construction industry is not immune to disruptions in the supply of goods from foreign sources.

Most construction contracts include a force majeure provision; however, not all such provisions are created equal.  Some provisions do not use the term  force majeure, and broadly apply to almost any delay that is beyond the control of the invoking party (See, e.g. AIA A201-2007, § 8.3.1: "If the Contractor is delayed . . . by . . . other causes beyond Contractor's control"), while other provisions are expressly

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from