A Force Majeure Trap Within Construction Contracts

Partridge Snow & Hahn LLP
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Many people in the construction industry believe the force majeure clause waives the requirement for making a claim for an extension of time. This belief, however, is incorrect at least under the A201. If your project is delayed by the coronavirus, you should review your contract to determine your obligations for perfecting force majeure claims. Under the A201, that obligation would include sending a claim for an extension of time.

Yes, the A201 does have a force majeure clause that excuses timely performance (if the Contractor is delayed by “causes beyond the Contractor’s control . . . then the Contract Time shall be extended”). See A201, § 8.3.1. However, the Contractor cannot take advantage of such clause unless it asserts a timely claim for an extension of time under Article 15. See A201, § 8.3.2. Indeed, 8.3.2 provides “Claims relating to time shall be made in accordance with applicable provisions of Article 15 [emphasis added].” The use of the word “shall” indicates (strongly) that such requirement is mandatory. A201, § 15.1.1 reiterates the mandatory nature of this requirement (“The responsibility to substantiate Claims shall rest with the party making the Claim [emphasis added].”).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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