North Carolina General Contractors Practice Exam

In the context of construction contracts, "force majeure" refers to unforeseen circumstances that are beyond the control of the parties involved, which can prevent them from fulfilling their contractual obligations. These circumstances typically include events such as natural disasters (like hurricanes or earthquakes), war, terrorism, or other events that cannot be anticipated or controlled.

Incorporating a force majeure clause allows contractors and clients to delineate what qualifies as a force majeure event and how it affects their obligations, including timelines and completion milestones. This clause serves as protection for both parties, ensuring that they are not penalized or held liable for delays caused by extraordinary events outside their control.

The other options do not capture the full definition of a force majeure. A standard delay in the construction process does not imply the same level of unpredictability or severity as force majeure events. A clause applicable only during labor disputes is too narrow in scope, as force majeure encompasses a wide range of potential situations. Finally, requirements regarding change orders pertain to modifications of the original contract and are not related to unforeseen circumstances affecting contract performance.