Construction Law/force majeure and claims
we are a contractor on construction work and would like to ask whether a camp riot caused by one worker be considered as force majeure event? are we liable for liquidated damages here?
the contract stated and defined force majeure as Force Majeure is defined as “….any event beyond the reasonable control of the parties, as the case may be, and which is unavoidable notwithstanding the reasonable care of the party affected, and shall be the following: xxx (b) rebellion, revolution, insurrection, mutiny, usurpation of civil or military government, conspiracy, riot, civil commotion, terrorist acts”
also whether upon mobilisation, we can claim payment when all the materials and workers has been mobilised but the work has been delay because government authority has not yet issue the permit?
You forgot to mention the form of contract you are using,thus my answer will be general in nature.
This depends on what is written in the contract and the law applicable to it.
Liquidated damage can be apply only if the Contractor failed to comply with the time for completion as stipulated in the contract.
You need to check you contract of any stipulations regarding force majeure events and if it's included under the Employer's Risk. In most contract, if a force majeure event (part of Employer's Risk)
occured and the Contractor suffered delay and incurred cost from rectifying loss and damage of works, he is entitled to an Extension of Time and payment of such cost.
Regarding mobilisation claim, you need to check conditions regarding the following:
01. Party responsible for obtaining government permits.
02. Commencement Date
You can submit a notice and further claim for time and cost due to this delay provided that:
01. the client is responsible for the permits.
02. the commencement date is specified in the contract and you have mobilized within the time frame required (if something is mentioned in the contract)
Hope the above helps.
Jonathan L. Peralta