The construction industry is one of the most important sectors of a country’s economy. The construction industry in India is the second-largest contributor to the country’s gross domestic product (GDP). The construction sector is significant not only in India but also in every developing country in the world. A construction contract is a legally binding agreement between two or more parties that outlines the terms and conditions for the planning, design, and execution of a construction project. Natural disasters pose significant challenges to construction projects, introducing uncertainties that can profoundly impact project timelines, costs, and overall success. This paper has reported the critical aspect of accounting for project uncertainties stemming from natural disasters within the context of construction contracts. By examining the dynamic interplay between environmental risks and contractual frameworks, the study aims to provide valuable insights for stakeholders navigating the complex landscape of construction project management. This research contributes to the ongoing discourse on project uncertainties in the construction industry by shedding light on the specific challenges posed by natural disasters. By accounting for insights into effective risk accounting strategies within construction contracts, the project stakeholders, including owners, contractors, and insurers, could mitigate project uncertainties in disaster-prone regions.