Para 9.4.9 - Force Majeure | KartavyaDesk
Original Rule Text
9.4.10. Force Majeure 1. A Force Majeure (FM) means extraordinary events or circumstance beyond human control such as an event described as an act of God (like a natural calamity) or events such as a war, strike, riots, crimes (but not including negligence or wrong-doing, predictable/ seasonal rain and any other events specifically excluded in the clause). An FM clause in the contract frees both parties from contractual liability or obligation when prevented by such events from fulfilling their obligations under the contract. An FM clause does not excuse a party's non-performance entirely, but only suspends it for the duration of the FM. The firm has to give notice of FM as soon as it occurs, and it cannot be claimed ex-post facto. There may be a FM situation affecting the purchase organisation only. In such a situation, the purchase organisation is to communicate with the contractor along similar lines as above for further necessary action. If the performance in whole or in part or any obligation under this contract is prevented or delayed by any reason of FM for a period exceeding 90 (ninety) days, either party may at its option terminate the contract without any financial repercussion on either side. 2. Notwithstanding the punitive provisions contained in the contract for delay or breach of contract, the contractor would not be liable for imposition of any such sanction so long as the delay and/ or failure of the contractor in fulfilling its obligations under the contract is the result of an event covered in the FM clause.
What This Means
Para 9.4.9 of the Manual for Procurement of Non-Consultancy Services deals with 'Force Majeure'. Simply put, Force Majeure refers to extraordinary, uncontrollable events like natural disasters (earthquakes, floods), wars, or riots. If such an event occurs, and it prevents either the government agency or the contractor from fulfilling their contractual obligations, this clause kicks in. It doesn't completely excuse non-performance, but it temporarily suspends the obligations for the duration of the event. Think of it as a 'pause' button on the contract due to circumstances beyond anyone's control.
To invoke Force Majeure, the affected party (usually the contractor) must notify the other party as soon as the event occurs. You can't claim it after the fact. If the Force Majeure event continues for more than 90 days, either the government agency or the contractor can choose to terminate the contract without facing any financial penalties. This protects both parties from being held liable for something they couldn't prevent.
Essentially, this rule acknowledges that sometimes, things happen that are beyond anyone's control, and it provides a fair way to deal with those situations in the context of government contracts. It ensures that neither the government nor the contractor is unfairly penalized when unforeseen circumstances disrupt the contract's execution.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Force Majeure covers extraordinary events beyond human control (e.g., natural disasters, war).
- •It temporarily suspends contractual obligations, not entirely excusing non-performance.
- •The affected party must promptly notify the other party about the Force Majeure event.
- •If the event lasts longer than 90 days, either party can terminate the contract without financial penalty.
- •The contractor is not liable for delays or failures resulting from a valid Force Majeure event.
Practical Example
The Department of Rural Development contracted with 'Sunrise Cleaning Services' for cleaning services at their regional offices for ₹5,00,000 per year. After six months, a massive earthquake struck the region, rendering the office building unusable and disrupting all services. Sunrise Cleaning Services immediately notified the Department of Rural Development about the earthquake and its impact on their ability to provide cleaning services.
Because the earthquake qualified as a Force Majeure event, Sunrise Cleaning Services was not penalized for failing to provide cleaning services during the period the office was closed. After 100 days, as the building was still unsafe, the Department of Rural Development, invoking Para 9.4.9, terminated the contract without any financial repercussions for either party. Sunrise Cleaning Services was paid only for the services rendered before the earthquake.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What events are NOT considered Force Majeure?▼
What happens if only the purchasing organization is affected by Force Majeure?▼
What is the time limit for claiming Force Majeure?▼
If a strike delays the delivery of supplies, can the contractor claim Force Majeure?▼
Does Force Majeure mean the contractor doesn't have to do anything at all?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 9.4.9 (Force Majeure) of the Manual for Procurement of Non-Consultancy Services, which of the following events would typically NOT be considered a Force Majeure event?
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