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. The standard form 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. Those conditions establish definitions, notice requirements, and consequences for both time and cost when a force majeure event occurs, and address material cost escalation, substitution rights, and termination where an event is prolonged.
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.
Pandemics and epidemics
Government-mandated lockdowns, site shutdowns and workforce restrictions.
Natural disasters
Floods, bushfires, storms and earthquakes affecting the site or supply chain.
Government orders
New legislation, regulatory changes, building moratoriums and border closures.
Supply chain disruptions
Material shortages, shipping delays and 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.
Common questions
Does the standard ABIC contract include a force majeure clause?
No. ABIC SW 2018 H has limited delay provisions but does not contain a broader force majeure regime dealing with events such as pandemics, natural disasters or severe supply chain disruption.
What events can a construction force majeure clause cover?
Depending on the agreed drafting, defined events can include pandemics, natural disasters, government orders, supply disruption, extreme material cost escalation and broad industrial action.
Does force majeure give time, cost or termination rights?
That depends on the clause. Careful drafting should state the notice process and whether an event affects extensions of time, cost allocation or termination after a prolonged disruption.
Where can I obtain ABIC force majeure conditions?
Pre-drafted conditions are available for eligible NSW contracts, while other jurisdictions and project-specific requirements can be addressed through bespoke conditions.
More on force majeure and supply chain risk
Force Majeure in Building Contracts
What the standard ABIC form leaves out, and how Special Conditions handle disasters, pandemics and government acts.
What a force majeure clause coversBuilding Material Cost Increases
A controlled, architect-assessed mechanism for sharing genuine global cost shocks without open-ended price rises.
Who pays when material costs riseABIC Special Conditions
The amendments themselves, and how bespoke drafting works for other jurisdictions.
ABIC special conditions explainedSpecialist 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 & Queensland Editor, Building & Construction Law Journal