agreement for construction of building

8/8/2019 Agreement for Construction of building

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Agreement for construction of Building

AN AGREEMENT made this ..........................day of.......................... 200..BETWEENM/S

a company registered under companies act 1956, having its registered office at... Duly representedby its GPA holder Mr . S/O . Aged years resident of .., Herein afterwardscalled as the CONTRACTOR, unless repugnant to the context herein the word shallmean and include its successors in office, administrators, executors of the one part

AndMr . S/O . Aged

years resident of ..,Herein afterwards called as the OWNER unless repugnant to the context herein theword shall mean and include his heirs for any dues and liability as an agent, permittedassigns of the other partWHEREAS the Owner is desirous for appointing a Contractor for construction of his house at............. and theContractor has agreed to accept the constructionwork under the terms and conditions appearing hereinafter.NOW THIS AGREEMENT WITNESSETH as follows:

1. The Contractor shall at their own cost [take down & remove the house & buildings,situate and being premises No............. in............. street, etc.] erect,build and completelyfinish in a good, substantial, and workmanlike manner and [with the best men andmaterials of their several kinds] a house and other buildings upon a piece of landbelonging to the owner, lying and situate at......... [that is the site upon which the saidhouse and buildings are existing] according to the plans, elevations and sections, and inaccordance with the specification of the works and drawings which have been duly signedby the Contractor and also by the owner's architect M/s.

.2. The said works shall be executed under the direction and to the satisfaction in allrespects of the said M/s. .. , who shall have been appointed to actfor him for the purpose of this contract.3. The owner hereby grants licence to the Contractor to enter on the premises for thepurpose only of performing this contract, the Contractor shall forthwith commence thesaid works actively prosecute the same, and the said works shall in all respects becompleted by making the said house and buildings made fit for habitation and use

within ........... calendar months from the date of these presents;Provided that if anydelay shall arise from fire or due to any unforeseeable and unavoidable circumstances orany natural calamities or other inevitable cause or accident or any strike or lock-out inthe building trade or any other trade or employment, or by the default of the owner inpaying in due course any moneys payable to the Contractor under this contract then suchfurther time shall be allowed for the construction thereof as the architect shall in writingcertify to be reasonable.4. All materials to be used in the works, although the same would be particularlymentioned in the specification or as from time to time required in writing by the owner orthe architect, shall be supplied and furnished by the Contractor.5. The contractor shall, on completion of the said works, at his own expense, removeand clear away all scaffolding, fencing unused materials, and rubbish from the same, andleave the whole of the works and premises in a clean and proper state.6. The owner shall pay to the Contractor the sum of Rs.......... (Rupees.......................)only which shall include the cost of labour and of all materials, plant, and other thingsrequired for the purpose of the works, and of the conveyance or transport and removal

thereof to or from the works in mannerfollowing that is to say, (a) the sum of Rs.............(Rupees...........,.............) only upon the production of the owner's certificate, of thearchitect that works to the value of Rs............. (Rupees.........,...............) has been dulyexecuted to his satisfaction by the Contractor, (b) the further sum of Rs.. upon theproduction, of like certificate that work to the value of Rs.............(Rupees.........................) has been so executed, (c) and the remaining said sum of


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Rs............. {Rupees... ......,....) upon the production to the owner of the certificate of thearchitectthat the said works have been in all respects completed making the said houseand buildings made fit for habitation and use, in accordance with the contract and to hissatisfaction, or, (the sum to be paid by theowner to the Contractor for the said worksshall be ascertained according to the rates specified in the schedule of prices annexed tothe said specification, so far as the prices are there specified, which shall include the costof labour as above and the payment for any work not included in the said schedule of

prices, shall be fixed by the architect).7. Weekly payments on account shall be made by the owner to the Contractor upon thecertificates of the architect of the contract value of the work executed, subject to a

deduction of 10% upon such value which shall be retained by the owner until thecompletion of the work, and shall be paid to the Contractor upon the certificate of thearchitect of the works having been completed, and of the balance remaining due to thecontractor.8. All such payments to be made to the contractor under this agreement in the manneras aforesaid, shall always be, subject to a statutory deduction as provided under theIncome Tax Act, 1961, for which necessary certificates for such deduction for the purposeof Income Tax shall be provided by the owner to the contractor along with everypayment.9. The architect shall not give his certificate in respect of any work which is in anyrespect defective or not according to the contract or otherwise not done to his reasonablesatisfaction or while the contractor is not using due diligence in the prosecution of theworks, or is otherwise making default for the performance of this contract.10. The owner [or the architect] may at any time during the progress of the works by

order in writing make or cause to be made any alteration in the said original specificationand plans by way of omission or addition or otherwise deviating there from, and the saidworks shall be executed according to the said alteration or deviations under the direction

and to the satisfaction of the architect in the same manner as if the same had beenincluded in the said original specification and plans; and any work or materials whichshall so be ordered not to be done or used shall be omitted or shall not be used by thecontractor.11. All additions and deductions to be made to or from the amount of the Contract pricein respect of any such alteration or deviation from the said specification or plans asaforesaid shall be fixed by the architect: and the difference of expense occasioned byany such alteration or deviation shall be added or deducted to or from the contract price.But no payment or allowance whatever shall be made to the Contractor for any extrawork or materials done or used by him without a previous order or authority in writingfrom the owner; and any alteration or deviation ordered or authorized as aforesaid shallnot in anywise alter the total contract price to be paid to the Contractor, except so far asthe same shall alter the amount of labour or the value of the materials which may be

required to be used in or about the works, nor shall alter the mode in which the contractprice is to be paid, or in which the value of the work done is to be ascertained with a viewto payment thereof. And the Contractor shall not by reason of any such addition to oralteration in the works as aforesaid be allowed any further time for completing exceptsuch further time (if any), as the architect shall in writing certify to be reasonable.12. The owner shall be entitled to deduct any moneys which the Contractor shall be liableto pay to the owner, under this contract or otherwise, from any sum which may becomepayable to the Contractor hereunder; and the architect in making his certificates asaforesaid shall have regard to any sums so chargeable against the Contractor: PROVIDEDalways that provision shall not affect any other remedy by action at law, or otherwise towhich the owner may be entitled for the recovery of any such moneys.13. In case the said works shall not in all respects be completed [and the said house andbuildings made fit for habitation and use] [and all scaffolding, fencing, unused materialsand rubbish cleared away] on or before the............. day of.............. or within suchextended time as shall be allowed for that purpose,as hereinbefore mentioned, and thearchitect shall certify in writing the fact of such non-completion or non-removal, then thecontractor shall pay to the owner, as liquidated damages for such default, and not as a

penalty, the sum of Rs............ (Rupees...............), for every subsequent week, and so inproportionfor any part of a week, until the completion of the said works, and the removalof all scaffolding, fencing, unused materials and rubbish, such completion and removal to

be certified in writing by the architect.

14. All materials which may from time to time during the progress of the works be in,upon, or about the premises for use in the said works (except such as may be rejected bythe architect as not being in accordance with the specification), shall be deemed to be theabsolute property of the owner, and save as regards any surplus materials remaining overafter completion of the said works in accordance with this contract, shall be used solelyfor the purpose of the said works and shall not be removed without the consent orauthority of the architect but the Contractor shall nevertheless be solely responsible forthe loss or destruction thereof, and for all damage which may happen thereto by fire orany other cause whatsoever and the Contractor shall likewise be liable to make good alldamage which may happen to the said works from any cause what ever thereto duringthe progress thereof.


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15. The Contractor shall depute company civil engineer to superintend the execution ofthe work, and shall not assign [or sublet] this contract or any part thereof, without theexpress licence and approval in writing of the owner.16. A supervisor or engineer appointed and paid by the Contractor shall be constantly onthe works, and all direction given to him by the architect shall be deemed to have beengiven to the Contractor. The site supervisor of the work shall be appointed and paid bythe owner and shall at all times be allowed to inspect the works and materials on behalf

of the architect and subject to an appeal to the architect no materials to which the saidsupervisor shall object shall be used.17. In case at any time during the progress of the works any unnecessary delay shall

occur in the carrying on of the same through the default of the Contractor [and such delayshall be certified by the architect] and the owner or the architect shall give a writtennotice to the Contractor to proceed with the said work or leave the same, if contractordoes not rectify then the owner shall be at liberty, without avoiding this contract, torecover possession of the said premises or any part thereof, and to take the said workswholly or partially out of the hand of the Contractor, and to employ any other person orpersons to execute the same and for that purpose to retain possession of, and use allmaterials and to take possession of, and use of scaffolding, plant, tools, implements andthings on or aboutthe said works and all expenses and damages thereby incurred, shallbe ascertained and certified by the architect and shall be paid by the contractor to theowner.18. In case the Contractor shall at any time neglect or omit to pull down or remove anywork or materials which the architect shall have to certify in writing to be defective, ornot according to contract within......... days after writing notice soto do shall have been

given to him or left on the works by the owner or the architect or left as aforesaid, orwithin such further time as may be specified in such notice, or in case the Contractor shallassign [or sublet] this contract or any part thereof without licence or prior approval of the

owner, then and in any such case the owner shall be at liberty, without avoiding thiscontract, to recover possession of the said premises or any part thereof, and to take thesaid works wholly or partially out of the hand of the Contractor, and to employ any otherperson or persons to execute the same and for that purpose to retain possession of, anduse all materials and to take possession of, and use of scaffolding, plant, tools,implements and things on or aboutthe said works and all expenses and damages therebyincurred, shall be ascertained and certified by the architect and shall be paid by thecontractor to the owner.19. The certificate, or decision in writing, of the architect upon any matter as to which heis hereby authorised to certify or decide, shall be final and binding upon both parties,except that the architect may by any certificate make any correction or modification inany previous certificate which shall have been made by himself, or by any predecessor inhis office, except that certificate shall not be conclusive as to the sufficiency of any work

or materials to which it relates and shall not relieve the Contractor from the liability tomake good any defective work or materials.20. The Contractor shall conform in all respects to the provisions and regulations of anygeneral or local Act of Parliament, or of any local authority which may be applicable to thesaid works, and indemnify the owner against all penalties incurred by reason of non-observance of any such provisions or regulations.21. The Contractor shall indemnify the owner against all actions or proceedings whichmay be brought or taken against the owner in respect of damages caused to a publicstreet by the contractor in the performance of this contract.22. The owner shall indemnify the Contractor against all actions and proceedings on thepart of any person having or claiming ancient lights, on account of any actual or allegedor apprehended interference of the said buildings and works therewith.23. The owner and the Contractor shall respectively at their own expense insure againsttheir several liabilities covered by this contract in such sums as may be determined underthese presents and in default of any provision therein, then any such sums as shall bereasonable and each party shall upon the demand of the other at any time produce forinspection the relevant policy or policies of insurance and the receipts for premium paid.24. In case of any dispute or difference shall arise between the owner or architect andthe contractor either during the progress or after completion or abandonment of theworks as to the construction of the contract or as to any matter thing arising therein or in

connection therewith or in respect of any certificate or decision in writing of the architect,issued upon the Contractor for the purpose, either party may forthwith give to the othernotice in writing of any such dispute or difference and the same shall be referred to thearbitration and the final decision of a single arbitrator to be agreed upon the parties, orfailing agreement within 30 days of such notice to be given at the request of the eitherparty, by the President of the Institute of Civil Engineers for the time being. The award ofsuch arbitrator shall be final and binding upon the parties.

IN WITNESS WHEREOF the Parties have hereunto set their respective hands the day and year first above written.


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OWNERGPA HOLDERS

PhotoWITH COMPANY SEAL

LTM FOR

IDENTIFICATION

SIGNATURE

Name:.

CONTRACTOR

PhotoLTM FOR

IDENTIFICATION

SIGNATURE

Name:.

Witnesses1. Name..

S/O.

Adress

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. SIGNATURE

2. 2 Name..

S/O.

Adress

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. SIGNATURE

agreement for construction of building

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