What concept absolves the indemnified party from any payment for losses and damages incurred by a third party?

The correct choice is the concept of indemnification. This principle involves one party agreeing to compensate another for certain damages or losses, effectively providing protection against third-party claims. When a contract includes indemnification provisions, it ensures that if a third party were to incur losses or damages arising from the actions or negligence of one of the parties to the agreement, the indemnifying party agrees to cover those costs. This ensures that the indemnified party does not face financial repercussions due to incidents that are not their fault.

The other options, while relevant in different contexts, do not serve the same purpose as indemnification. Delays and extensions of time relate to project management aspects, allowing for adjusted timelines without penalties due to unforeseen circumstances. Schedule acceleration involves speeding up a project timeline, usually at an increased cost or altered resource allocation, but does not address liability for damages caused by a third party. Force majeure refers to unforeseen events that prevent a party from fulfilling a contract, exempting them from liability during those events but does not specifically relate to indemnifying another party for third-party claims.