Climate change and its unpredictable effects continue to significantly impact various industries. One industry particularly impacted is the construction industry. Specifically, a 2021 report from the Air Force Institute of Technology found that approximately 45% of construction projects globally are impacted by adverse weather. This percentage will likely continue to increase as radical weather events become more common. For example, the National Centers for Environmental Information has determined that there have already been nine confirmed weather/climate disaster events in the United States in 2023 (with the 1980-2022 annual average being 8.1 events, and the annual average for the most recent five years (2018-2022) being 18 events).

These radical weather changes can affect the timeliness and financing of a construction project. Additionally, adverse weather, including, but not limited to, wildfires, intense flooding, and extreme heat, causes site safety issues and working hazards that contractors must now take into consideration. Furthermore, it may be harder for contractors to obtain insurance policies for their projects. Not only must the “boots on the ground” contractor take these factors into consideration, but attorneys representing these contractors must also consider the impacts of climate change when drafting contracts and advising their clients. Specifically, attorneys should include contractual clauses that ensure their client will not be liable for damages as a result of project delays caused by extreme weather events (i.e., force majeure clauses), and which are caused through no fault of the developer, contractor or design professionals.

The Impact of Climate Change on the Construction Industry