Common use of Delays and Extensions of Time Force Majeure Clause in Contracts

Delays and Extensions of Time Force Majeure. 1. CAUSES OF DELAY If, at any time after signing this CONTRACT, either the construction or delivery of the VESSEL or any performance required hereunder as a prerequisite to the delivery thereof is delayed by any of the following events: namely war, acts of state or government, blockade, revolution, insurrections, mobilization, civil commotion, riots, strikes, sabotage, lockouts, Acts of God or the public enemy, plague or other epidemics, quarantines, shortage or prolonged failure of electric current, freight embargoes, or defects in major forgings or castings, delays or defects in the BUYER’s supplies as stipulated in Article XII, if any, or shortage of materials, machinery or equipment or inability to obtain delivery or delays in delivery of materials, machinery or equipment, provided that at the time of ordering the same could reasonably be expected by the BUILDER to be delivered in time or defects in materials, machinery or equipment which could not have been detected by the BUILDER using reasonable care or earthquakes, tidal waves, typhoons, hurricanes, prolonged or unusually severe weather conditions or destruction of the premises or works of the BUILDER or its sub-contractors, or of the VESSEL, or any part thereof, by fire, landslides, flood, lightning, explosion, or delays in the BUILDER’s other commitments resulting from any such causes as described in this Article which in turn directly delay the construction of the VESSEL or the BUILDER’s performance under the CONTRACT (the BUILDER treating this CONTRACT not less favorably than other commitments), or delays caused by the CLASSIFICATION SOCIETY or the BUYER’s faulty action or omission, or other causes beyond the control of the BUILDER, or its sub-contractors, as the case may be, then in the event of delays due to the happening of any of the aforementioned contingencies, the DELIVERY DATE of the VESSEL under this CONTRACT shall be extended for a period of time which shall not exceed the total accumulated time of all such delays provided however that: (i) the delay in respect of which the BUILDER is claiming relief was beyond its reasonable control or that of its employees, suppliers and subcontractors and was not caused or contributed to by any error, neglect, act or omission of the BUILDER or of its agents, employees or subcontractors, nor by any breach of this CONTRACT; (ii) the delay impacts upon the Vessel’s construction schedule and completion; (iii) the BUILDER has shown due diligence in choice of sub-contractor; and (iv) the BUILDER has taken all reasonable steps to mitigate its effect upon the construction of the VESSEL, For the avoidance of doubt, where two delay events as described in this paragraph 1(a) occur simultaneously or overlap with each other, such delays caused by such events shall not be double-counted.

Delays and Extensions of Time Force Majeure. 1. CAUSES OF DELAY (FORCE MAJEURE) If, at any time after signing this CONTRACT, either the construction or delivery of the VESSEL or any performance required hereunder as a prerequisite to the delivery thereof is delayed by any of the following events: namely war, acts of state or government, blockade, revolution, insurrections, mobilizationmobilisation, civil commotion, riots, strikes, lockout, or industrial unrest, sabotage, lockouts, Acts acts of God god or the public enemy, plague or other epidemicsepidemics [***], quarantines, shortage or prolonged failure of electric current, freight embargoes, or defects in major forgings or castings, delays or defects in the BUYER’s supplies 's SUPPLIES as stipulated in Article XIIXIII, if any, or shortage of materials, machinery or equipment or inability to obtain delivery or delays in delivery of materials, machinery or equipment, provided that at the time of ordering the same could reasonably be expected by the BUILDER to be delivered in time or defects in materials, machinery or equipment which could not have been detected by the BUILDER using reasonable care or earthquakes, tidal waves, typhoons, hurricanes, prolonged or unusually severe (by reference to what can reasonably be anticipated at the BUILDER's premises at the time of year of such occurrence) weather conditions or destruction of the premises or works of the BUILDER or its sub-contractorssubcontractors, or of the VESSEL, or any part thereof, by fire, landslides, flood, lightning, explosionexplosion (and in each case without the default or negligence of the BUILDER and its subcontractors), or delays in the BUILDER’s 's other commitments resulting from any such causes as described in this Article which in turn directly delay the construction of the VESSEL or the BUILDER’s 's performance under the CONTRACT (the BUILDER treating this CONTRACT not less favorably than other commitments)CONTRACT, or delays caused by the CLASSIFICATION SOCIETY or the BUYER’s faulty action 's breach of this CONTRACT or omissionother act of prevention not expressly provided for in this CONTRACT, or other causes beyond the control of the BUILDER, or its sub-contractorssubcontractors, as the case may be, then then, in the event of delays due to the happening of any of the aforementioned contingencies, (each a "Force Majeure Event") the DELIVERY DATE of the VESSEL under this CONTRACT shall be extended for a period of time by which completion or delivery of the VESSEL is thereby delayed which shall not exceed the total accumulated time of all such delays provided however thatdelays, Subject however, to the following conditions: (i) the Force Majeure Event or the delay in respect question was not reasonably foreseeable at the date of which the BUILDER is claiming relief was beyond its reasonable control or that of its employees, suppliers and subcontractors this CONTRACT and was not caused or contributed to in whole or part by any error, neglect, act or and/or omission of the BUILDER or of its agents, employees suppliers or subcontractors, nor by any breach of this CONTRACT; (ii) the delay impacts upon BUILDER has taken and continues to take all reasonable steps to mitigate the Vessel’s construction schedule effects of the Force Majeure Event and completionresulting delay; (iii) the BUILDER has shown due diligence in choice shall have diligently kept under review its own circumstances and those of sub-contractorits subcontractors and suppliers, so as to be aware of any actual or potential Force Majeure Event and its effects as early as reasonably practicable; and (iv) the BUILDER has taken all reasonable steps complies with Article VIII.2. For the avoidance of doubt the following shall not constitute Force Majeure Events (whether or not they would otherwise have done so): (a) shortages in materials, increases in labour or materials costs, and/or financial stress or difficulties of the BUILDER or its suppliers or subcontrators and/or exchange rate movements; (b) failures by subcontractors and suppliers (unless themselves caused by circumstances which would themselves have constituted Force Majeure Events); (c) delays on the part of the CLASSIFICATION SOCIETY (unless caused by circumstances which would themselves have constituted Force Majeure Events); or (d) [***] The maximum period of delay which may be claimed by the BUILDER during the period of this CONTRACT in respect of [***] 2. NOTICE OF DELAYS As soon as practicably possible, but no more than ten (10) days after commencement of any delay on account of which the BUILDER claims that it is entitled under this CONTRACT to mitigate its effect upon an extension of the construction DELIVERY DATE of the VESSEL, For excluding delays due to arbitration, the avoidance BUILDER shall advise the BUYER in writing or by E-mail of doubtthe date such delay commenced, where two the reasons thereof and, if possible, its estimated duration of the probable delay events as described in the delivery of the VESSEL, and shall supply the BUYER, if reasonably available, with evidence to justify the delay claimed. The failure by the BUILDER to provide notice complying with this paragraph 1(ato the BUYER within such period shall preclude the BUILDER from claiming an extension of the DELIVERY DATE in respect of the event, occurrence or circumstance giving rise to the delay in question. Within fifteen (15) occur simultaneously days after such delay ends, the BUILDER shall likewise advise the BUYER in writing or overlap with each otherby E-mail of the date that such delay ended, and also, shall specify the maximum period of time by which the BUILDER claims the DELIVERY DATE should be extended by reason of such delays caused delay. Failure of the BUYER to object to the BUILDER's notification of any claim for extension of the date for delivery of the VESSEL within seven (7) days after receipt by the BUYER of such events notification of the ending of the delay shall not be double-counteddeemed to be a waiver by the BUYER of its right to object to such extension.