A Systematic Method to Analyze Force Majeure in Construction Claims

Abstract

Abstract: In construction delay claims, force majeure is normally recognized as an excusable risk that entitles contractors only to time extensions, but neither of the contracting parties is entitled to monetary compensation to recover delay damages. However, there are instances where contractors are entitled to both time and cost compensations, as evidenced by some court cases relating to force majeure claims. Such instances involve attributing the occurrence of the force majeure to the effect of other prior delay events that pushed project performance into the period of the force majeure. Existing delay analysis methods are not capable of addressing this issue, as none take the impact of other delays into consideration when analyzing force majeure claims. Stimulated by this gap, this study proposes an improved and sound method for fairly analyzing the responsibility of force majeure delay claims amongst contracting parties. This method was implemented on a case project to help demonstrate its application and also ascertain its practicability. The contribution of this paper is twofold. First, it has highlighted the situation of force majeure delay that can be compensable, creating more awareness among researchers and industry practitioners. The second is a proposed systematic process to appropriately analyze its responsibility, which equitably addresses claims from such delays with little or no chance of dispute ensuing.