Answer to Question 1
When a construction project is destroyed while it is being built there needs to be a clause that protects contractors from having to perform. A clause that could be included in the construction contract is Destruction of Subject Matter. Projects that would fall under this protection would have been destroyed by fires, unstable conditions, or violent natural acts. If this clause, or some type of similar clause, is not included in a construction contract then a contractor is not relieved from further performance. If a contractor is not discharged from the project because of the destruction of the subject matter then he or she is not able to recover for work that has already been performed on the project. It is also not equitable to require a contractor to start a project over at the original cost of the project, especially if it is several years into a project.
Answer to Question 2
The circumstances under which a contractor would be allowed a time extension if a force majeure clause is included in a contract include acts of God or circumstances beyond the control of contractors such as floods, lightening strikes, hurricanes, earthquakes, tsunamis, monsoons, and tornadoes if they are not common occurrences in a particular geographical area.
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