Analysis of force majeure clauses in Indian construction contracts
By: Jagannathan, Murali
.
Contributor(s): Thakker, Vishal.
Publisher: Pune NICMAR 2021Edition: Vol.36(2), April-June.Description: 23-32p.Subject(s): Civil EngineeringOnline resources: Click here
In:
NICMAR Journal of construction managementSummary: Construction projects, due to its inherent risks and uncertainties, are prone to disputes.
Many researchers have observed that the way the construction contract is drafted and
administered has a major impact on the dispute and claim occurrence in a given
construction project. There is a need to have a clause–by-clause understanding of a
contract so that inconsistencies, if any, can be assessed and suitable mechanisms can be
put in place to avoid serious escalation of the conflicts and problems. On these lines, in
the paper, the authors have chosen the Force Majeure (hereinafter called as FM clauses)
in the construction contracts and analysed them in detail across various standard forms
used in India. The choice of FM clauses was in the light of the authors' reading of some
of the related court cases, in which it appeared that provisions under FM clauses,
stipulated in standard formats and very commonly in construction contracts, to be
tricky and confusing. The analysis of the FM clauses gave light to five dimensions that
were found important in constructing FM clauses and in each of these dimensions,
authors have noted some of the important observations, which in accordance to the
authors, may have an impact on appreciating the real meaning and intent of providing
the FM clauses in such construction contracts (in the public construction projects of
Indian context). To validate, court case analysis was performed. These key learnings
from the analysis of court cases were found supportive to the observations made.
Though, only 7 cases were analysed in this work, the observations and the
recommendations made would be of a good start in a systematic analysis of FM clauses
from judicial standpoint, specifically in the Indian construction context.
| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
|---|---|---|---|---|---|---|
Articles Abstract Database
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School of Engineering & Technology (PG) Archieval Section | Not for loan | 2021-2022661 |
Construction projects, due to its inherent risks and uncertainties, are prone to disputes.
Many researchers have observed that the way the construction contract is drafted and
administered has a major impact on the dispute and claim occurrence in a given
construction project. There is a need to have a clause–by-clause understanding of a
contract so that inconsistencies, if any, can be assessed and suitable mechanisms can be
put in place to avoid serious escalation of the conflicts and problems. On these lines, in
the paper, the authors have chosen the Force Majeure (hereinafter called as FM clauses)
in the construction contracts and analysed them in detail across various standard forms
used in India. The choice of FM clauses was in the light of the authors' reading of some
of the related court cases, in which it appeared that provisions under FM clauses,
stipulated in standard formats and very commonly in construction contracts, to be
tricky and confusing. The analysis of the FM clauses gave light to five dimensions that
were found important in constructing FM clauses and in each of these dimensions,
authors have noted some of the important observations, which in accordance to the
authors, may have an impact on appreciating the real meaning and intent of providing
the FM clauses in such construction contracts (in the public construction projects of
Indian context). To validate, court case analysis was performed. These key learnings
from the analysis of court cases were found supportive to the observations made.
Though, only 7 cases were analysed in this work, the observations and the
recommendations made would be of a good start in a systematic analysis of FM clauses
from judicial standpoint, specifically in the Indian construction context.
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