Force majeure events in construction industry

In recent years, there have been increasing questions about force majeure events, especially after COVID-19 affected the entire Malaysian construction industry. This also made the participants in the construction industry aware of the insufficient understanding of the force majeure clause. Therefore...

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Main Author: Koo, Zhong Yee
Format: Thesis
Language:English
Published: 2022
Subjects:
Online Access:http://eprints.utm.my/id/eprint/100355/1/KooZhongYeeMBE2022.pdf
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spelling my-utm-ep.1003552023-03-30T07:58:43Z Force majeure events in construction industry 2022 Koo, Zhong Yee TH Building construction In recent years, there have been increasing questions about force majeure events, especially after COVID-19 affected the entire Malaysian construction industry. This also made the participants in the construction industry aware of the insufficient understanding of the force majeure clause. Therefore, this study aims to improve the understanding of force majeure clauses in Malaysia and under what circumstances a party may invoke the clause to relieve liability for failure to perform the contract. In this study, documentary analysis was adopted. The standard forms of contract of the Public Works Department (PWD), Pertubuhan Arkitek Malaysia (PAM), The Institution of Engineers, Malaysia (IEM), Construction Industry and Development Board (CIDB) and International Federation of Consulting Engineers (FIDIC) were studied. These standard forms of contract have been chosen as they are commonly used by the Malaysian construction industry. In addition, a legal analysis of past law cases was carried out. Based on the findings, it was concluded that force majeure is any situation or circumstance beyond the control of both parties, usually including war (or similar), acts of terrorism, riot (other than that caused by the contractor's employees, subcontractors or agents), natural disasters (see the list provided in the clause), governmental acts and epidemics. The force majeure clause may be triggered or relied upon when the related party able to prove that (i) the facts within the scope of the force majeure clause, (ii) the force majeure event prevented, hindered or delayed its performance of the contract, (iii) the non-performance was caused by circumstances beyond party’s control, and (iv) all reasonable steps were taken to avert the alleged force majeure event. In conclusion, this study provides a clearer definition of force majeure and a useful reference for construction industry participants on the issue of force majeure. 2022 Thesis http://eprints.utm.my/id/eprint/100355/ http://eprints.utm.my/id/eprint/100355/1/KooZhongYeeMBE2022.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:150220 masters Universiti Teknologi Malaysia Faculty of Built Environment & Surveying
institution Universiti Teknologi Malaysia
collection UTM Institutional Repository
language English
topic TH Building construction
spellingShingle TH Building construction
Koo, Zhong Yee
Force majeure events in construction industry
description In recent years, there have been increasing questions about force majeure events, especially after COVID-19 affected the entire Malaysian construction industry. This also made the participants in the construction industry aware of the insufficient understanding of the force majeure clause. Therefore, this study aims to improve the understanding of force majeure clauses in Malaysia and under what circumstances a party may invoke the clause to relieve liability for failure to perform the contract. In this study, documentary analysis was adopted. The standard forms of contract of the Public Works Department (PWD), Pertubuhan Arkitek Malaysia (PAM), The Institution of Engineers, Malaysia (IEM), Construction Industry and Development Board (CIDB) and International Federation of Consulting Engineers (FIDIC) were studied. These standard forms of contract have been chosen as they are commonly used by the Malaysian construction industry. In addition, a legal analysis of past law cases was carried out. Based on the findings, it was concluded that force majeure is any situation or circumstance beyond the control of both parties, usually including war (or similar), acts of terrorism, riot (other than that caused by the contractor's employees, subcontractors or agents), natural disasters (see the list provided in the clause), governmental acts and epidemics. The force majeure clause may be triggered or relied upon when the related party able to prove that (i) the facts within the scope of the force majeure clause, (ii) the force majeure event prevented, hindered or delayed its performance of the contract, (iii) the non-performance was caused by circumstances beyond party’s control, and (iv) all reasonable steps were taken to avert the alleged force majeure event. In conclusion, this study provides a clearer definition of force majeure and a useful reference for construction industry participants on the issue of force majeure.
format Thesis
qualification_level Master's degree
author Koo, Zhong Yee
author_facet Koo, Zhong Yee
author_sort Koo, Zhong Yee
title Force majeure events in construction industry
title_short Force majeure events in construction industry
title_full Force majeure events in construction industry
title_fullStr Force majeure events in construction industry
title_full_unstemmed Force majeure events in construction industry
title_sort force majeure events in construction industry
granting_institution Universiti Teknologi Malaysia
granting_department Faculty of Built Environment & Surveying
publishDate 2022
url http://eprints.utm.my/id/eprint/100355/1/KooZhongYeeMBE2022.pdf
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