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Questions and Answers
What is the timeframe within which the Contractor must send a fully detailed claim to the Engineer?
What is the timeframe within which the Contractor must send a fully detailed claim to the Engineer?
- Within 60 days after becoming aware of the event or circumstance giving rise to the claim
- Within 28 days after becoming aware of the event or circumstance giving rise to the claim
- Within 30 days after becoming aware of the event or circumstance giving rise to the claim
- Within 42 days after becoming aware of the event or circumstance giving rise to the claim (correct)
If the event or circumstance giving rise to the claim has a continuing effect, what is the requirement for sending interim claims?
If the event or circumstance giving rise to the claim has a continuing effect, what is the requirement for sending interim claims?
- The Contractor shall send further interim claims at bi-weekly intervals
- The Contractor shall send further interim claims at yearly intervals
- The Contractor shall send further interim claims at quarterly intervals
- The Contractor shall send further interim claims at monthly intervals (correct)
Within what timeframe must the Engineer respond to a claim or any further particulars supporting a previous claim?
Within what timeframe must the Engineer respond to a claim or any further particulars supporting a previous claim?
- Within 30 days after receiving a claim or any further particulars
- Within 28 days after receiving a claim or any further particulars
- Within 60 days after receiving a claim or any further particulars
- Within 42 days after receiving a claim or any further particulars (correct)
What does the Engineer's response to a claim include?
What does the Engineer's response to a claim include?
How does the Engineer proceed to agree or determine the extension of the Time for Completion and/or the additional payment to which the Contractor is entitled?
How does the Engineer proceed to agree or determine the extension of the Time for Completion and/or the additional payment to which the Contractor is entitled?
How are disputes adjudicated?
How are disputes adjudicated?
How is the DAB comprised?
How is the DAB comprised?
If the DAB is to comprise three persons, how are the members appointed?
If the DAB is to comprise three persons, how are the members appointed?
What is included in the agreement between the Parties and either the sole member or each of the three members of the DAB?
What is included in the agreement between the Parties and either the sole member or each of the three members of the DAB?
What does the licensed copy mentioned in the text refer to?
What does the licensed copy mentioned in the text refer to?
According to the text, what does sub-paragraph (d) cover?
According to the text, what does sub-paragraph (d) cover?
What does sub-paragraph (d) exclude, according to the text?
What does sub-paragraph (d) exclude, according to the text?
According to the text, what does the licensed copy not cover?
According to the text, what does the licensed copy not cover?
What does the licensed copy specifically exclude, as per the text?
What does the licensed copy specifically exclude, as per the text?
According to the text, what does sub-paragraph (e) cover?
According to the text, what does sub-paragraph (e) cover?
According to the text, what does sub-paragraph (e) exclude?
According to the text, what does sub-paragraph (e) exclude?
What is the consequence for the Contractor if completion of the work is delayed due to Force Majeure?
What is the consequence for the Contractor if completion of the work is delayed due to Force Majeure?
Under what circumstances can either party give notice of termination of the Contract due to Force Majeure?
Under what circumstances can either party give notice of termination of the Contract due to Force Majeure?
What happens if the Contractor fails to give notice of a claim within 28 days?
What happens if the Contractor fails to give notice of a claim within 28 days?
What action can the Engineer take after receiving a notice of claim from the Contractor?
What action can the Engineer take after receiving a notice of claim from the Contractor?
Under what circumstances can either party be discharged from further performance of the Contract?
Under what circumstances can either party be discharged from further performance of the Contract?
What is the entitlement for the Contractor if the Contract is terminated due to Force Majeure?
What is the entitlement for the Contractor if the Contract is terminated due to Force Majeure?
What is the time limit for the Contractor to give notice of a claim for extension of time and/or additional payment?
What is the time limit for the Contractor to give notice of a claim for extension of time and/or additional payment?
What is the definition of Force Majeure according to the text?
What is the definition of Force Majeure according to the text?
What does the Contractor need to do if the cover described in sub-paragraph (d) ceases to be available at commercially reasonable terms?
What does the Contractor need to do if the cover described in sub-paragraph (d) ceases to be available at commercially reasonable terms?
What is the limit per occurrence for insurance against liability for any loss, damage, death or bodily injury according to the text?
What is the limit per occurrence for insurance against liability for any loss, damage, death or bodily injury according to the text?
Under what conditions may the insurance against liability for claims, damages, losses and expenses exclude losses and claims?
Under what conditions may the insurance against liability for claims, damages, losses and expenses exclude losses and claims?
What is the time limit for giving notice of Force Majeure after becoming aware of the relevant event or circumstance according to the text?
What is the time limit for giving notice of Force Majeure after becoming aware of the relevant event or circumstance according to the text?
What is the responsibility of each Party during Force Majeure according to the text?
What is the responsibility of each Party during Force Majeure according to the text?
What does Force Majeure not apply to according to the text?
What does Force Majeure not apply to according to the text?
What is the time limit for giving notice of Force Majeure after becoming aware of the relevant event or circumstance according to the text?
What is the time limit for giving notice of Force Majeure after becoming aware of the relevant event or circumstance according to the text?
What is the definition of Force Majeure according to the text?
What is the definition of Force Majeure according to the text?
What does the insurance for Contractor’s Personnel need to cover according to the text?
What does the insurance for Contractor’s Personnel need to cover according to the text?
What is the responsibility of each Party during Force Majeure according to the text?
What is the responsibility of each Party during Force Majeure according to the text?
What does the Contractor need to do if the cover described in sub-paragraph (d) ceases to be available at commercially reasonable terms?
What does the Contractor need to do if the cover described in sub-paragraph (d) ceases to be available at commercially reasonable terms?
Under what conditions may the insurance against liability for claims, damages, losses, and expenses exclude losses and claims?
Under what conditions may the insurance against liability for claims, damages, losses, and expenses exclude losses and claims?
What is the timeframe within which the Contractor must send a fully detailed claim to the Engineer?
What is the timeframe within which the Contractor must send a fully detailed claim to the Engineer?
If force majeure prevents the works for 84 continuous days or more than 140 days in total, what action can either party take?
If force majeure prevents the works for 84 continuous days or more than 140 days in total, what action can either party take?
What is included in the Payment Certificate issued upon termination?
What is included in the Payment Certificate issued upon termination?
What is the consequence for the Contractor if they fail to give notice of a claim within 28 days?
What is the consequence for the Contractor if they fail to give notice of a claim within 28 days?
What is the requirement for the Contractor in terms of record-keeping during force majeure?
What is the requirement for the Contractor in terms of record-keeping during force majeure?
Under what circumstance can the parties be discharged from further performance of the contract?
Under what circumstance can the parties be discharged from further performance of the contract?
What is the timeframe for the Contractor to give notice to the Engineer if they believe they are entitled to an extension of time or additional payment?
What is the timeframe for the Contractor to give notice to the Engineer if they believe they are entitled to an extension of time or additional payment?
What is the consequence for the Contractor if they fail to submit required notices and supporting particulars for the claim?
What is the consequence for the Contractor if they fail to submit required notices and supporting particulars for the claim?
Study Notes
Force Majeure Consequences in Construction Contracts
- Contractor is entitled to an extension of time for any delay caused by force majeure and payment of any related costs.
- Engineer must proceed to agree or determine the matters after receiving a force majeure notice from the Contractor.
- If a subcontractor has broader force majeure relief terms, it does not excuse the Contractor's non-performance or entitle them to relief.
- If force majeure prevents the works for 84 continuous days or more than 140 days in total, either party can terminate the contract.
- Upon termination, the Engineer determines the value of the work done and issues a Payment Certificate.
- The Payment Certificate includes amounts payable for work, cost of plant and materials, other reasonably incurred costs or liabilities, removal cost of temporary works, and repatriation cost of staff and labor.
- Parties can be discharged from further performance if an event or circumstance outside their control arises, making it impossible or unlawful to fulfill their contractual obligations.
- If the Contractor believes they are entitled to an extension of time or additional payment, they must give notice to the Engineer within 28 days of becoming aware of the claim.
- Failure to give notice within 28 days disqualifies the Contractor from an extension of time or additional payment, and the Employer is discharged from liability.
- The Contractor must submit any other required notices and supporting particulars for the claim, along with keeping necessary contemporary records.
- The Engineer may monitor the record-keeping and instruct the Contractor to keep further contemporary records.
- The Contractor must permit the Engineer to inspect all records and, if instructed, submit copies to the Engineer.
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Description
Test your knowledge of the consequences of force majeure in construction contracts with this quiz. Explore topics such as entitlement to extension of time, payment for related costs, termination conditions, and notice requirements for claims.
