Force Majeure Value Calculator

Force majeure excuses delay but owner still carries carrying cost.

Delay days

Daily LD

Daily owner carry

Net force majeure value

$62,500

LD avoided (contractor)

$125,000

Owner carry cost

$62,500

How the math works

LD avoided = days × daily LD (contractor benefit). Owner carry = days × carry cost. Net = LD avoided − carry.

25 × $5k = $125k LD avoided vs 25 × $2.5k = $62.5k owner carry. Net $62.5k contractor benefit.

How to Use

Enter delay days.
Enter daily LD cost.
Enter daily owner carry cost.
Read net force majeure value.

Frequently Asked Questions

Force majeure mechanics?

Contract excuses delay caused by listed events: weather (severe), strikes, pandemics, war, government action, materials shortage (in some contracts). Contractor gets time extension; sometimes additional comp for carrying cost. Owner absorbs own carry cost.

Typical events?

Natural disasters (hurricane, flood, earthquake). Pandemics (COVID was broadly applied). Strikes or labor actions. Government shutdowns. Severe weather beyond normal. Global supply chain disruptions (material shortage, 2021-22 especially).

Limitations?

Usually excludes weather 'reasonably anticipated' in baseline. Excludes financial inability. Excludes contractor's own supplier failures (unless directly attributable to FM event). Contractor must give prompt notice (typically 10 days) or waive claim.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.