The Evolution Of Force Majeure In Construction Contracts

Law360, New York (June 22, 2015, 10:53 AM EDT) -- Recent events have again demonstrated the fragility of the network of suppliers for domestic and overseas construction projects. Labor disputes by dockworkers on the U.S. west coast disrupted international trade at seaports handling about $1 trillion worth of cargo annually.[1] Typhoon Noul in East Asia slowed factory production and the transportation of more than 10,000 passengers and 1,000 shipping vessels.[2] Serious threats of war in Yemen may significantly impact shipments through the Suez Canal and oil through the Bab el Mandeb and oil.[3]

Construction contracts commonly address these types of supply disruption events in a force majeure provision. However, not all...

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