{"id":903405,"date":"2024-10-09T15:10:56","date_gmt":"2024-10-09T21:10:56","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903405"},"modified":"2024-10-09T15:10:59","modified_gmt":"2024-10-09T21:10:59","slug":"force-majeure-recovering-time-and-costs","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/force-majeure-recovering-time-and-costs\/","title":{"rendered":"Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors"},"content":{"rendered":"\n<p>Matthew DeVries | <a href=\"https:\/\/www.bestpracticesconstructionlaw.com\/2024\/10\/articles\/best-practices\/recovering-time-and-costs-from-hurricane-helene-force-majeure-solutions-for-contractors\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Best Practices Construction Law<\/a><\/p>\n\n\n\n<p>When Hurricane Helene struck North Carolina, it caused severe disruptions to construction projects across the state. Baxter International\u2019s North Cove facility in Marion, N.C., was completely shut down after floodwaters damaged the site and bridges leading to it. Elsewhere, landslides and floods wiped out large sections of Interstate 40, making transportation of materials and equipment nearly impossible. Many contractors in western North Carolina found their projects halted, and their schedules thrown off by this force majeure event.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"embed-youtube\" style=\"text-align:center; display: block;\"><iframe loading=\"lazy\" class=\"youtube-player\" width=\"750\" height=\"422\" src=\"https:\/\/www.youtube.com\/embed\/u7JjrRZC2PI?feature=oembed&#038;version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en-US&#038;autohide=2&#038;wmode=transparent\" allowfullscreen=\"true\" style=\"border:0;\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox\"><\/iframe><\/span>\n<\/div><\/figure>\n\n\n\n<p>In situations like these, contractors and subcontractor need a plan to mitigate the impact of such natural disasters on their projects. Here are five practical tips to help you secure <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/time-is-moneyexcept-when-it-isnt-financial-consequences-of-extensions-of-time-in-construction-contracts\/\">time extensions<\/a> and\/or compensation for delays:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">1.&nbsp;<strong>Include a Robust Force Majeure Clause in Your Contract<\/strong><\/h4>\n\n\n\n<p>When disaster strikes, your contract is your first line of defense. A well-drafted\u00a0<em><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/force-majeure-preparing-construction-contracts-for-hurricane-season\/\">force majeure<\/a><\/em>\u00a0clause can make the difference between bearing the costs yourself and getting an extension or compensation. The clause should clearly list specific events such as hurricanes, floods, and road closures as qualifying\u00a0<em>force majeure<\/em>\u00a0events.<\/p>\n\n\n\n<p>Make sure the clause also specifies what type of relief you are entitled to\u2014whether it\u2019s an extension of time, compensation for additional costs, or both. Without this clarity, owners may argue that delays due to weather or other external events don\u2019t qualify for relief. As we saw with Hurricane Helene, road closures and site flooding can bring construction to a complete halt. A strong&nbsp;<em>force majeure<\/em>&nbsp;clause can help shift the risk of these delays from the contractor to the owner, ensuring you don\u2019t suffer financially for something out of your control\u200b.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">2.&nbsp;<strong>Provide Immediate Notice to the Owner<\/strong><\/h4>\n\n\n\n<p>When a&nbsp;<em>force majeure<\/em>&nbsp;event occurs, time is of the essence. Many contracts have a requirement for the contractor or subcontractor to give prompt notice to the owner as soon as it becomes clear that the event will impact the project timeline. This is often a strict requirement, and failure to provide timely notice can void your claim for additional time or costs.<\/p>\n\n\n\n<p>For example, if Hurricane Helene causes road closures that delay the delivery of materials, you need to inform the owner right away. This notice should be in writing and include as much detail as possible about how the event will affect your project. Timely notification not only keeps the project owner informed, but also helps to preserve your rights under the contract to seek an extension or compensation later on\u200b.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">3.&nbsp;<strong>Keep Detailed Documentation<\/strong><\/h4>\n\n\n\n<p>After a&nbsp;<em>force majeure<\/em>&nbsp;event, the burden is often on the contractor to prove that the event caused the delays and that the contractor took reasonable steps to mitigate the impact. Documentation is key to making this case.<\/p>\n\n\n\n<p>Start by keeping detailed records of how the event affected your project. Take photos of the site conditions before and after the storm, save emails from subcontractors and suppliers about delayed shipments, and keep copies of any official announcements about road closures or weather conditions. This documentation will provide the evidence you need to support your claim for additional time or costs\u200b.<\/p>\n\n\n\n<p>In addition to documenting external factors, make sure you also track your own efforts to minimize delays. For example, if you rerouted materials or brought in additional labor to catch up, keep a record of these actions. This will show the owner that you took reasonable steps to mitigate the delay, further strengthening your claim.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">4.&nbsp;<strong>Coordinate with Local Authorities and Agencies<\/strong><\/h4>\n\n\n\n<p>In major disasters like Hurricane Helene, local and state authorities often have critical information that can help you manage the impact on your project. For example,\u00a0<a href=\"https:\/\/drivenc.gov\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">www.driveNC.gov<\/a>\u00a0provides lived updated information on road closures affected by the storms.<\/p>\n\n\n\n<p>Staying informed can help you plan around obstacles and demonstrate to the project owner that you are taking the necessary steps to minimize delays. In addition, these updates may provide you with valuable documentation to support your claim. For example, if road closures prevent the delivery of materials, documentation from the state and local agencies can help validate your request for additional time\u200b.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">5.&nbsp;<strong>Consider Insurance Options<\/strong><\/h4>\n\n\n\n<p>While a well-drafted\u00a0<em>force majeure<\/em>\u00a0clause can help protect you from financial loss, depending on the size of the project and whether the owner\/developer is foreign, there may be insurance coverage in some limited instances.\u00a0<a href=\"https:\/\/www.irmi.com\/term\/insurance-definitions\/force-majeure-insurance\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">According to IRMI<\/a>,\u00a0<em>force majeure<\/em>\u00a0insurance is a type of insurance that can cover certain losses that occur when a project is delayed or halted due to an unforeseen event (<em>i.e.<\/em>, fire, earthquake, war, revolution, flood, and epidemics).<\/p>\n\n\n\n<p>Force majeure insurance typically covers the costs of restarting a project after a natural disaster, as well as any losses resulting from the delay. In some cases, it may even provide coverage for increased material costs caused by supply chain disruptions\u2014something that was a major issue after Hurricane Helene. In this is part of your insurance program, you can further protect your business from the financial impacts of a disaster\u200b.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>By following these five tips, you can be better prepared to handle\u00a0<em>force majeure<\/em>\u00a0events and protect your construction projects from the financial consequences of delays. Whether it\u2019s including a strong\u00a0<em>force majeure<\/em>\u00a0clause in your contracts or ensuring you have the right insurance, these steps will help you navigate the challenges that come with natural disasters like Hurricane Helene.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Matthew DeVries | Best Practices Construction Law When Hurricane Helene struck North Carolina, it caused severe disruptions to construction projects across the state. Baxter International\u2019s North Cove facility in Marion, N.C., was completely shut down after floodwaters damaged the site and bridges leading to it. Elsewhere, landslides and floods wiped out large sections of Interstate&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/force-majeure-recovering-time-and-costs\/\">Continue reading <span class=\"screen-reader-text\">Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224,11112],"class_list":["post-903405","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-force-majeure-provision","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors - Advise &amp; 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