When a Business Is at a Standstill: A Force Majeure Certificate Saves a Business

Force majeure certificates are becoming an indispensable tool for Kazakhstani entrepreneurs facing unforeseen circumstances. Shakey Amirzhan Maratovich, director of Ash stroy LLP, told how the procedure for obtaining a certificate through the Chamber of International Commerce of Kazakhstan helped his business and why he recommends this service to other companies.

— Tell us a little about your business: what industry do you work in and what difficulties have you encountered?

— Our company Ash Stroy LLP is engaged in construction and installation of buildings and structures of various complexity. We have been working in the market since 2005, and during this time we have accumulated a lot of experience and implemented many projects of different levels. However, during the implementation of one of the long-term contracts, we faced a number of insurmountable difficulties. In particular, there was a need to adjust the design and estimate documentation, and this process dragged on for six months. Later, for his own reasons, the customer withdrew the project from the state expertise, which led to a complete shutdown of work. According to the law "On Architectural, Urban Planning and construction Activities", it is prohibited to continue construction while adjusting the project. Nevertheless, the Customer considered this time to be a non-fulfillment of obligations on our part, despite the objective circumstances. Additionally, an emergency regime was declared on the territory of Petropavlovsk, but this was not taken into account either.

— What was the reason for applying for a force majeure certificate? What circumstances influenced the fulfillment of your obligations?

— The main reason for applying for the certificate was that the situation with the adjustment of Design estimates and the emergency regime put us in a very difficult position. We could not continue working due to legal restrictions and insurmountable circumstances, but the Customer did not recognize these facts. As a result, there was a threat of financial losses, deterioration of relations with the counterparty and reputational risks. In order to officially confirm the existence of force majeure and protect our rights, we decided to apply for a certificate. It was the only way to objectively prove that the delay in fulfilling obligations was not our fault.

— How did you find out about the possibility of obtaining a force majeure certificate through the Chamber of International Commerce of Kazakhstan?

— We learned about the possibility of obtaining a force majeure certificate through the Union of Builders of Kazakhstan, where I hold the position of director of the Branch of the Union of Builders in the North Kazakhstan region. The Union actively cooperates with the Atameken Chamber of Entrepreneurs and the Chamber of International Commerce of Kazakhstan. The fact is that we regularly study the problems that arise in the construction industry and share solutions that can help in such situations. Thus, we learned about the possibility of applying for a certificate through the Chamber of International Commerce of Kazakhstan.

— How was the application process? How clear and convenient was it for you?

— The process of submitting documents turned out to be as clear and convenient as possible for us. From the very beginning, the staff of the Chamber of Commerce provided us with clear explanations on all stages of the procedure. They explained what documents are needed, how to properly formalize the situation, and what steps need to be taken. We promptly collected all the necessary documents and described our problem in detail. Thanks to the responsiveness and professionalism of the staff, the whole process took minimal time, and there were no difficulties when submitting.

— Were there any difficulties in obtaining the certificate? If so, how did they help you solve them?

— Fortunately, there were no difficulties in obtaining the certificate. Thanks to the professional support of the staff of the Chamber of Commerce, all issues were resolved quickly and efficiently. We were pleasantly surprised by their promptness and attentive approach to our situation. Support at all stages helped to avoid bureaucratic obstacles and make the process of obtaining a certificate as simple as possible.

— How did this certificate affect your situation?

— The force majeure certificate played a key role in resolving our conflict with the Customer. He confirmed that the delay in fulfilling the obligations was caused by objective circumstances that did not depend on our company. Thanks to this document, we were able to protect our interests and maintain a constructive dialogue with the Customer. This made it possible to avoid further financial and reputational losses, as well as to demonstrate to the Customer that we act in the legal field and do not shy away from our obligations.

— Did the certificate help preserve your business relationship or the company's reputation?

— Of course, the Certificate allowed us not only to maintain a working relationship with the Customer, but also to save the reputation of our company. The customer accepted the document as an official and reasonable confirmation of force majeure circumstances. This prevented further conflicts and strengthened trust in our company. Reputation is extremely important to us, because in the construction industry it plays a key role when working with new and current partners.

— Were there any cases when a certificate was needed to apply to a court or arbitration? How was he received there?

— Yes, the situation required going to court. At the end of 2023, the Customer withdrew the project that needed to be adjusted, and we were forced to file a lawsuit for the obligation to make this adjustment. In court, the force majeure certificate became one of the main pieces of evidence. He confirmed the objectivity of our arguments and served as an important argument in our favor. The court took the document as an official confirmation of insurmountable circumstances, which significantly strengthened our position.

— In your opinion, what role did the Chamber of Commerce play in solving your problem?

— The Chamber of Commerce played a crucial role. Without their support, it would be extremely difficult for us to prove the existence of force majeure on our own. The process of collecting evidence and officially confirming it through the court could take a long time, and this is critical for businesses due to time constraints in contracts. The staff of the Chamber helped us to quickly and professionally formalize the situation and obtain a certificate, which became a key tool for protecting our rights.

We highly appreciate the professionalism and support of the staff of the Chamber of International Commerce of Kazakhstan. At each stage, they demonstrated efficiency, competence and attention to detail. Thanks to their clear explanations and support, the whole process went quickly and without unnecessary difficulties. We are grateful to the Chamber for their help in protecting our interests and believe that their work plays an important role in supporting businesses in such difficult situations.