Force majeure clauses – a ‘Day Zero’ respite

Property developers are not immune to the water restrictions being imposed by the City of Cape Town and, in terms of the recently published Level 6 water restrictions, have had to reduce their monthly consumption of municipal drinking water by 45% from 1 February 2018. With day zero looming, contractors need to be aware of the remedies available under their construction contracts and, where no relief is provided, to ensure they do not sit idle but actively explore possible alternatives. Should the taps run dry, the timeous completion of many developments will hang in the balance and developers will need to be familiar with the relief options in their construction contracts. Can I rely on a force majeure clause? Many (if not most) standard form construction contracts contain force majeure clauses. These clauses generally provide that where a party has been prevented from performing its obligations under a contract by events or circumstances which were neither foreseen nor…

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