In construction contracts, what does "force majeure" indicate?

The term "force majeure" refers to unforeseen events or circumstances that prevent a party from fulfilling their contractual obligations. These typically include natural disasters such as earthquakes, floods, hurricanes, or other extraordinary events that could not be predicted or controlled by either party involved in the contract. Such situations can significantly impact the ability to perform work and are often outlined in contracts to allocate risk and responsibility in the event that these unexpected occurrences arise.

Understanding this concept is crucial for contractors, as it provides a legal avenue to seek relief or an extension of time to complete a project without being penalized for delays that are caused by factors outside their control. This distinction helps manage expectations and responsibilities between the contracting parties, ensuring that both sides are aware of the potential impacts of unpredictable events on the project's schedule and completion requirements.