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Contracts & Legal

Force Majeure

In Plain English

A clause that excuses a party from performance when an extraordinary event beyond their control prevents them from completing the work.

Definition

Force majeure is a contract provision that excuses a party from performance obligations due to extraordinary events beyond their control, such as natural disasters, pandemics, wars, or government actions. When force majeure is triggered, the affected party is typically entitled to a time extension but not additional compensation. The specific events covered depend on the contract language.

Why It Matters in Bidding

Force majeure language directly shapes a bidder's risk pricing because it determines who absorbs the cost of unforeseeable disruptions. A weak or narrow clause pushes weather, supply-chain, and shutdown risk onto the contractor, who may then carry contingency in the bid; a clear clause granting time extensions lets bidders price tighter without padding for catastrophic events.

Example

During bid review, a GC's estimator flagged that the contract's force majeure clause granted only time extensions and excluded material-shortage delays, so the team added a procurement contingency line and submitted a clarification request before the bid deadline.

Related Terms

Delay ClaimContractConditions of the ContractClaim

Frequently Asked Questions

Most clauses grant only a time extension, not additional compensation, meaning the contractor absorbs extended overhead and idle-resource costs during the delay. Some negotiated contracts allow recovery of direct costs for prolonged events, but bidders should read the exact language rather than assume relief, and price contingency accordingly.
When the clause is narrow or excludes common disruptions like supply shortages or labor stoppages, estimators often add measured contingency or note exclusions in the proposal. On long-duration or material-heavy projects, this matters more, since the contractor may bear schedule extension costs even when performance is excused.
Normal weather delays are usually handled by allowing anticipated adverse-weather days in the baseline schedule. Force majeure covers extraordinary, unforeseeable events beyond ordinary planning, such as hurricanes, pandemics, or government shutdowns. The triggering threshold is much higher, and what qualifies depends entirely on the specific enumerated events in the contract.

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