Procedure on Force Majeure Event Clause Samples
The Procedure on Force Majeure Event clause outlines the steps parties must follow if an unforeseeable event beyond their control prevents them from fulfilling contractual obligations. Typically, this clause requires the affected party to promptly notify the other party of the force majeure event, provide relevant details, and take reasonable measures to mitigate its impact. Its core function is to ensure clear communication and a structured response during disruptions, thereby minimizing disputes and clarifying the parties’ rights and responsibilities when such events occur.
Procedure on Force Majeure Event. Upon either party becoming aware of the occurrence of a Force Majeure Event that may prevent that party from performing any obligation under this Agreement, that party shall in a timely manner give the other party notice of the Force Majeure Event, including reasonable details of the anticipated effect of the Force Majeure Event upon performance of this Agreement, and thereafter the parties shall on an ongoing basis consult with each other with a view to remedying or mitigating the Force Majeure Event and, if applicable, rebuilding the Project or otherwise addressing the consequences of the Force Majeure Event. Except to the extent that damage caused to the Existing Infrastructure or the New Infrastructure by a Force Majeure Event is insured against or required to be insured against by the Contractor, the Province shall be responsible for repairing the damage, provided that:
(a) the Province may in its discretion, having regard to the nature and extent of the damage and acting reasonably, decline to repair the damage; and
(b) if the Province, pursuant to clause (a), declines to repair the damage, that shall, subject to Section 13.2, constitute a Relief Event under Section 13.2(s) (but without prejudice to any termination right arising under Section 17.4).
Procedure on Force Majeure Event. (a) A Party shall provide written notice to the other Party within 5 Business Days of becoming aware of the occurrence of a Force Majeure Event. The Party providing notice shall, within 15 Business Days after such notification, provide further written details to the other Party which shall include:
(i) a statement of which Force Majeure Event the claim is based upon;
(ii) details of the event or circumstances forming the basis for the Party’s claim;
(iii) details of the contemporary records which such Party shall maintain to substantiate its claim for relief;
(iv) details of the consequences (whether direct or indirect, financial or non-financial) which such Force Majeure Event may have upon such Party and its obligations under this Agreement, accompanied by copies of all supporting records in such Party’s custody or available to such Party which substantiate or support such Party’s claim; and
(v) details of any measures which the Party proposes to adopt to mitigate the consequences of such Force Majeure Event.
(b) In addition to the requirements of Section 10.2(a), if Project Co provides such notice, then Project Co shall:
(i) submit to the City a Schedule Update within 15 Business Days (or other timeline as agreed between the Parties on a case-by-case basis) after such notification;
(ii) for a Force Majeure Event that continues for longer than 30 calendar days, provide a monthly update of the impact of the Force Majeure Event to the Construction Schedule, which shall include a detailed description of the impact to the satisfaction of the City, acting reasonably;
(iii) submit to the City a Schedule Update within 10 Business Days (or other timeline as agreed between the Parties on a case-by-case basis) after the Force Majeure Event ceases to affect Project Co’s performance of the Project Work; and
(iv) shall submit a forensic schedule analysis (a “Forensic Schedule Analysis”) in accordance with AACE International Recommended Practice No. 29R-03 within 10 Business Days (or other timeline as agreed to between the Parties on a case by case basis) of the conclusion of the Force Majeure Event or the portion of the Force Majeure Event that impacts the Construction Schedule. The Forensic Schedule Analysis shall include adequate justification for the selected forensic schedule analysis method and demonstrate that it produces an accurate assessment of the event impact.
(c) As soon as possible, but in any event within 3 Business Days, of the Party providing notice (...
Procedure on Force Majeure Event. Upon either party becoming aware of the occurrence of a Force Majeure Event that may prevent that party from performing any obligation under this Agreement, that party shall in a timely manner give the other party notice of the Force Majeure Event, including reasonable details of the anticipated effect of the Force Majeure Event upon performance of this Agreement, and thereafter the parties shall on an ongoing basis consult with each other with a view to remedying or mitigating the Force Majeure Event and, if applicable, rebuilding the Project or otherwise addressing the consequences of the Force Majeure Event. Except to the extent that damage caused to the Existing Infrastructure or the New Infrastructure by a Force Majeure Event is insured against by the Contractor, the Province shall be responsible for repairing the damage, provided that the Province may in its discretion, having regard to the nature and extent of the damage and acting reasonably, decline to repair the damage.
Procedure on Force Majeure Event. J2.1 Upon either Party becoming aware of the occurrence of a Force Majeure Event that may prevent that Party from performing any obligation under this Design Build Agreement, that Party shall in a timely manner give the other Party notice of the Force Majeure Event, including reasonable details of the anticipated effect of the Force Majeure Event upon performance of this Design Build Agreement, and thereafter the Parties shall on an ongoing basis consult with each other with a view to remedying or mitigating the Force Majeure Event and, if applicable, rebuilding the Project or otherwise addressing the consequences of the Force Majeure Event.
J2.2 Except to the extent that damage caused to the Infrastructure by a Force Majeure Event is insured against or required to be insured against by Design Builder in accordance with this Design Build Agreement, the City will be responsible for repairing the damage, provided that:
(a) the City may in its discretion, having regard to the nature and extent of the damage and acting reasonably, decline to repair the damage, and if the City declines to repair the damage it shall provide notice of this decision to Design Builder as soon as reasonably practicable;
(b) if the City, pursuant to Section J2.2(a), declines to repair the damage, then, subject to Section J3 and Section K1, the City’s decision to decline to repair the damage shall constitute a Relief Event under Section K1.1(j) (but without prejudice to any termination right arising under Section O4.1); and
(c) if the City chooses to repair the damage and it intends to require Design Builder to carry out the repairs, then the City will issue a Change Order Directive to Design Builder for the necessary repairs in accordance with Schedule 17 – Change Orders. For clarity, this Section J2.2 applies only in respect of damage that is caused by a Force Majeure Event and shall not apply to damage that is otherwise the responsibility of Design Builder pursuant to this Design Build Agreement.
