What does the term “force majeure” refer to in construction contracts?

The term "force majeure" in construction contracts refers specifically to unforeseen events that prevent a party from fulfilling their contractual obligations. These events are typically beyond the control of the parties involved and can include natural disasters, acts of war, strikes, and other similar occurrences that could impede the work or the ability to meet deadlines.

In the context of construction projects, acknowledging force majeure is crucial as it provides a legal basis for a party to claim relief from penalties or damages related to delays caused by such unforeseen circumstances. This concept is essential for managing risk and liability within construction contracts, as it recognizes that not all delays are the result of a party's negligence or failure to perform.

In contrast, routine maintenance requirements, expected delays, and normal financial fluctuations do not fall under force majeure as they pertain to situations that can generally be anticipated and managed within the scope of the contractual agreement. These factors are part of the normal course of business and do not provide the same legal basis for contract relief as unforeseen events do.