SAMPLE AGREEMENT BETWEEN OWNER AND BUILDING CONTRACTOR

SAMPLE AGREEMENT BETWEEN OWNER AND BUILDING CONTRACTOR 

 THIS AGREEMENT IS MADE on _____(Fill in the date) Between: Mr. ___ ___ (OWNERS NAME) #_______(address of the Owner) hereinafter called the OWNER, which term shall include his assigns and successors. AND Mr. __ ____ (BUILDING CONTRACTORS NAME) #_______(address of the Contractor) hereinafter called the BUILDING CONTRACTOR, which term shall include his assigns and successors. Whereas the owners possess a plot of land bearing #___ _____ (address of the Site where construction will be carried out) and are desirous of constructing a house in the said plot of land as per the approved architects plan and the specifications, rates and quantities, enclosed and forming part of this agreement. 

NOW THIS AGREEMENT IS AS FOLLOWS:

 1. The Building Contractor shall in consideration of the money to be paid in the manner set forth below to execute and complete the works as per the plan and specifications enclosed to the satisfaction of the Owner and his Architect ___ ___ (Architects Name and Company details) having office address at #__ __ __ __ (Address of the Architectural Firm).

 

 2. This contract is on a square feet based contract. The cost per square feet of built area is Rs.......( ) (Fill with the Cost). The square feet shall include all built up area including terrace and grill work . The total area of the building is...... Sft (Fill Total Area ). Therefore, .......X.....= Rs......(Rupees ..........only) The total cost of building = Rs........... (Rupees .........only) (Fill the total cost of the Building) to carry out the work in respect of the entire construction of the said building as per the architectural and structural drawings and as per items mentioned in the schedule and signed on ____ (Fill in the date of signing). (Any additional work is chargeable as per the mentioned rates).

 

 3. The rates quoted in the schedule shall be for complete work in all respects and shall include all direct, indirect and contingent costs, expenses including charges for scaffolding, centering material and shuttering, hire for tools and machinery, transportation charges and temporary sheds for storage of materials, labour removal of debris, etc.

 4. COST ESCALATION CHARGES: The rates in the schedule are based on the basic rates of steel ,cement, sand and tiles taken as In case of any escalation in these basic rates corresponding downward or upward adjustments shall be made to the contracted amount/values. No escalation in respect of any other item or material or account shall be permitted. 

 

 5. The contractor hereby agrees to complete the work in all respects so as to make the house fully habitable on or before __ _ _ (Mention project deadline date). It is an express stipulation that time is the essence of the contract. The contractor shall submit the work schedule within 10 days from this date and weekly site meetings will be held to monitor the progress. 

 6. All works contract tax if applicable is included in the rates mentioned in Part 2 (Bill of Quantities) of this agreement. Any non-tendered items will be charged as per actual +15% profit 

 7. The Building contractor shall be responsible solely for the compliance, expense, liability, damages, etc., on account of the following matters, under the relevant laws, enactment’s and the owner shall not be liable for any such compliance, expense, liability, and damages under any circumstances. a) Workman’s Compensation Act, Employees State Insurance Act, Provident Fund Act, Minimum Wages Act, and payment of Wages Act. . b) Any other law relating to the workers employed in construction. . c) Common-Law in respect of injuries, etc., to person and property, caused due to and arising out of the carrying out the work under this contract. . d) The Building contractor shall indemnify and keep indemnified the owner against all losses, damages, fines, prosecutions, liabilities that may arise or accrue against the owner from the contractor’s failure to adhere to all statutory obligations. . 

8. The Building contractor shall work in coordination with other agencies involved in working on the building. He shall render all co-operation and assistance to them. The time of completion shall not be extended to this account. The contractor shall set right damages caused to the building due to the work of electrical, sanitary and water supply, contractors, for which he shall be paid accordingly.Security retention amount will be 3% of the value of work executed and certified by Client/Client Representative. And released after 3month of the virtual completion of the project 

 9. If the OWNER chooses to supply any construction materials required they shall be given credit for the cost of such materials and the value shall be deducted out of the immediately succeeding running bill. 

 10. AUTHORIZED VARIATIONS: a) The Building contractor may when authorized in writing or which directed verbally and later confirmed in writing by the architect with the previous consent of the owner and to or omit from or vary the work shown and described in the schedules and the contractor shall make no additions omissions or variations without such authority or direction. b) The Architect may with the consent of the owner omit from or add or vary any item of work shown and described in the schedule. c) All authorized variations for which a rate or price may not have been previously agreed upon shall be measured and valued by the Architect. Items, for which no such rate exists shall be worked at actual cost to the contractor at site of work plus 15% VAT of the actual cost provided the architect duly certifies such cost. 

11. MATERIALS AND WORKMANSHIP: a) All materials and workmanship shall be the best of the respective kind and described in the schedules. The decision of the architect regarding the rates, quantity, and sufficiency of materials and workmanship will be final and binding on the contractor. Specific brands mentioned as per attached schedule. b) The Architects shall have the power to order the removal from the works of any defective materials or work to order substitutions of materials of work in accordance with this agreement and the schedules. c) Notwithstanding 12 (b) above the architect, may allow, in writing with the prior written approval of the owner, such defective materials and/or work to remain with the consent of the owner and shall fix such lower rates or prices as they deem fit and these shall be binding on the contractor. 

12. WATER AND POWER SUPPLY: The owner shall arrange for temporary electrical connection, all electricity and water charges during the course of the construction will be borne by the client. 

 13. DEFECTS LIABILITY PERIOD: Any defects, leakages, shrinkage or any other faults which may appear within Five years from the date of completion of the work, shall upon the direction in writing of the owner and within such reasonable time as shall be specified therein be rectified and made good by the contractor at his own cost. In case, of default on the part of the contractor to rectify and make good the defects within the time specified by the Owner. The owner may employ and pay other persons to set right such defects and faults and the entire cost and expenses incurred thereon shall be borne by / made good by and/or be recoverable from the contractor, from any money including retention money due or which may become due to the civil contractor or otherwise. 

14. If in the opinion of the architect the work carried out by the contractor is unsatisfactory, or the progress is slow or it is likely that the contractor would not be able to complete the work within the schedule, the owner shall have the right to terminate this agreement, at the contractor’s risk by giving 15 days when have the right to award the contract to such of the agencies as they may deem fit and any cash loss or expenses incurred on this account, as certified by the architect will be deducted from money due to or recovered from the contractor. 

.MAINTENANCE PERIOD The maintenance period will be from one year to Two year. The owner should be able to go through the work accomplished by the builder and demand changes as per his or her needs. The contractor is obliged to deliver the goods and products as per the contract. There should be communication between the owner and the contractor so that the project will be executed without any issues. The Building contractor shall be responsible for the safe preservation and custody of all materials at the site. He shall compensate and reimburse the owner for any loss, damages that may arise therefrom.

 

 15.The Owner while retaining possession of the site has only permitted the contractor to enter upon the property for the purposes of constructing a residential house. The owner shall be subsequently entitled at any time to freely enter upon and exercise all acts of possession and ownership over the aforesaid residential site. 

16.Mobilization advance of Rs .......... (Rupees Seven Lakhs only) (Fill the Advance amount given) is agreed upon by owner to be paid to contractor, vide cheque # ___, dated ___ (Fill Cheque no and Date) drawn on _____ (Date of clearance), before the commencement of work. 

 17. In case of any dispute or difference arises between the owner and the contractor, the decision of the architect shall be binding on both the parties. IN WITNESS WHEREOF the parties hereto have set their hands on the date mentioned above at Vashi, Navi Mumbai 

Mr. ___ (OWNERS NAME) 

Mr. _____(CONTRACTORS NAME) . . . ____ _____ BUILDING CONTRACTOR OWNER