April 15, 2022
Force Majeure


I have been reading, writing and executing capital project contracts for 52 years. Most have had a Force Majeure clause.

However, I have never seen a Force Majeure clause executed until just a couple of years ago. Now I have seen this happen three times on three different projects.

What is Force Majeure? A legal definition is "unforeseeable circumstances that prevent someone from fulfilling a contract." That "someone" can, of course, be a person or a company.

Why the sudden rash of Force Majeure incidents? Let's look at these three without disclosing the companies or projects involved.

One was due to Covid. Startup personnel were recalled to their home country when Covid broke out.

One was due to last year's transportation problems. Prices rose and delivery was delayed.

One was due to the Russian-Ukraine War. A supplier could no longer get subcontracted parts manufactured in Russia.

Yes, we live in a more turbulent world. We also live in a more litigious world. Suppliers are concerned about being sued and, I think, see Force Majeure as a pre-emptive action on their part.

Anyway you look at it, Force Majeure seems to no longer be just words on a page.

What is your opinion? Drop me a line at jim.thompson@ipulpmedia.com. I would like to hear from you.


 
Young Engineering Manager of the Year, call for nominations

We are looking for an individual who has done an extraordinary project, one that almost defies belief. Its extraordinary features can be schedule, technology, cost or all three. There is an age limit on the manager eligible for this award: they must be under 35 years old when they completed the project.
 
We have often gotten nominees that go something like this, "I nominate Joe because he has done a great job of running our engineering department for the last fifteen years." Quite frankly, we are not interested in such nominees.
 
However, if you know someone who has led a very exceptional project in the recent past (the last two or three years) and meets our age requirement, we want to know about it. We want to honor them and hold them up as an example for Engineering Managers in every pulp and paper mill around the world.
 
Just send your nomination, with as much details as you can provide, to jim.thompson@ipulpmedia.com. We will seriously consider it.
Current Patent Activity is available here.


Please write when we tickle your brain cells! Email jthompson@taii.com