Force Majeure & Supply Chain
Force Majeure Clauses
Specialist force majeure and supply chain provisions for ABIC building contracts, protecting builders and owners from events beyond their control across all Australian states
The standard ABIC SW 2018 H contract does not include a force majeure clause. It provides limited extension of time provisions for delays, but does not address the broader consequences of events like pandemics, natural disasters, government-mandated shutdowns, or severe supply chain disruptions.
The COVID-19 pandemic exposed this gap in ABIC contracts across Australia. Builders in Sydney, Melbourne, Brisbane, Perth, Adelaide, and every other capital faced simultaneous lockdowns, material shortages, and cost escalation - with no contractual mechanism to address the consequences beyond basic extension of time claims. The result was widespread uncertainty, disputed claims, and commercial damage to both builders and owners.
Christopher Larcos drafts force majeure and supply chain special conditions that fill this gap in ABIC contracts. His conditions establish clear definitions, notice requirements, and consequences, for both time and cost, when force majeure events occur. They address material cost escalation, substitution rights, and (for prolonged events) termination mechanisms.
Pre-drafted force majeure conditions for ABIC contracts in New South Wales are available for immediate licence in the shop. For projects in Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, or the Northern Territory, or for bespoke requirements, he drafts custom conditions on instruction.
Force Majeure & Supply Chain Services
Specialist drafting of force majeure and supply chain provisions for ABIC contracts, pre-drafted conditions for NSW plus bespoke drafting for all other Australian jurisdictions.
Force Majeure Special Conditions
Specialist drafting of force majeure provisions for ABIC contracts, defining triggering events (pandemics, natural disasters, government orders), establishing notice requirements, and setting out the consequences for time and cost across all Australian jurisdictions.
Supply Chain Cost Provisions
Special conditions addressing supply chain disruptions and material cost escalation: rise-and-fall mechanisms, cost-sharing arrangements, and substitution provisions for projects in NSW, Victoria, Queensland, Western Australia, South Australia, and Tasmania.
Extension of Time for Force Majeure
Provisions establishing clear entitlements to extensions of time when force majeure events delay construction, including notice periods, documentation requirements, and the interaction with liquidated damages provisions.
Contract Termination Provisions
Force majeure termination rights for prolonged events, defining when either party may terminate, the consequences of termination (payment for work done, return of materials), and how the contract unwinds if the force majeure event makes completion impractical.
What Events Does Force Majeure Cover?
Force majeure provisions typically cover events that are beyond the reasonable control of the affected party, could not have been reasonably foreseen at contract formation, and prevent or materially hinder performance. Common qualifying events include:
- Pandemics and epidemics: government-mandated lockdowns, site shutdowns, workforce restrictions
- Natural disasters: floods, bushfires, storms, earthquakes affecting the site or supply chain
- Government orders: new legislation, regulatory changes, building moratoriums, border closures
- Supply chain disruptions: material shortages, shipping delays, manufacturer shutdowns
- Material cost escalation: extreme price increases beyond normal market fluctuation
- Industrial action: strikes or lockouts affecting the construction industry broadly
The definition must be carefully drafted: too broad and it creates a general excuse for poor performance; too narrow and it fails to cover the events that actually occur. Christopher’s force majeure conditions strike this balance through clear definitions and objective triggering criteria.
Who Needs Force Majeure Provisions?
Builders entering fixed-price ABIC contracts exposed to material cost escalation
Owners wanting protection from indefinite delays caused by events beyond the builder's control
Architects preparing ABIC contracts for projects in Sydney, Melbourne, Brisbane, Perth, or Adelaide
Parties concerned about pandemic-related risks on longer-duration residential projects
Builders operating in regions prone to natural disasters: floods, bushfires, cyclones
Any party to an ABIC contract in NSW, VIC, QLD, WA, SA, TAS, ACT, or NT
Need Force Majeure Conditions?
Pre-drafted force majeure and supply chain special conditions for NSW ABIC contracts are available for immediate licence. For other jurisdictions or bespoke requirements, get in touch.
Specialist Credentials
- Fellow of the Australian Institute of Architects (FRAIA)
- Dual-qualified solicitor and registered architect
- 40+ years in the construction industry
- Adjudicator across five Australian jurisdictions
- Former NSW Editor, Building & Construction Law Journal