FORCE MAJEURE – SUBCONTRACT AGREEMENT

FORCE MAJEURE – SUBCONTRACT AGREEMENT

• An event of Force Majeure (as defined hereinafter) shall not give rise to the SUBCONTRACTOR’s entitlement to additional payment or to extension of Time for Completion from the CONTRACTOR or the COMPANY, save where the CONTRACTOR has been compensated or Time for Completion has been extended by the COMPANY on the SUBCONTRACTOR’s behalf, in respect of the Subcontract Works.

• For the purposes of the Subcontract, a Force Majeure means such an exceptional event or circumstance as defined in the relevant clause of the Main Contract and compatible with the law governing the Subcontract which:

1. is beyond a Party’s control;
2. such Party could not reasonably have provided against before entering into the Subcontract;
3. having arisen, such Party could not reasonably have avoided or overcome; and
4. is not substantially attributable to the other Party.

Notwithstanding the foregoing, the Force Majeure shall not include:

1. any labor dispute other than general strikes (unless such general strikes are invoked by the SUBCONTRACTOR’s or its subcontractors’ or vendors’ employees);
2. mechanical breakdown of whatsoever kind not itself resulting from any Force Majeure;
3. shortage of labor, equipment, materials or utilities that is not itself attributable to any Force Majeure;
4. inclement or adverse weather;
5. any event or circumstances that make performance by a party uneconomical or commercially impracticable; or
6. any act or omission or default on the part of the SUBCONTRACTOR, its subcontractors or vendors (whether actual or potential) that is not itself attributable to any Force Majeure.

• If a Party is or will be prevented from performing any of its obligations under the Subcontract by Force Majeure, then it shall give notice to the other Party of the event or circumstances constituting the Force Majeure and shall specify the obligations, the performance of which is or will be prevented. The notice shall be given within the time at the least five (5) Days earlier than the time by which the CONTRACTOR shall give notice under the Main Contract (or earlier than this date when required by the CONTRACTOR) after the Party became aware, or should have become aware, of the relevant event or circumstance constituting Force Majeure.

• The SUBCONTRACTOR shall at all times use all reasonable endeavors to minimize any delay in the performance of the Subcontract as a result of Force Majeure.

A Party shall promptly give notice to the other Party when it ceases to be affected by the Force Majeure.

• If the SUBCONTRACTOR is prevented from performing any of his obligations under the Subcontract by Force Majeure of which notice has been given under Clause 24.3 and suffers delay and/or incurs cost by reason of such Force Majeure, the SUBCONTRACTOR shall be entitled, subject to Clause 19 and to the extent agreed by the COMPANY for such effect under the conditions of the Main Contract, to:

1. • an extension of time for any such delay, if Time for Completion is or will be delayed, under Clause 7.11; and
   • payment of any such cost, which shall be included in the Subcontract Price.

After receiving this notice, the CONTRACTOR shall determine these matters under Clauses 7.11 and 19.1.