Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
AGREEMENT FOR BUILDING WHERE OWNER SUPPLIES PLOT AND ALL MATERIALS
Open Legal LibraryUpdated 7 Jul 2026
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About this template
What is this template?
This is a labor-only building contract for projects where the employer acts as the material supplier. It contains a specific 80% monthly progress payment structure and a mandatory six-month defect rectification period. It is not a turnkey contract because the contractor has no obligation to procure materials or hardware.
When should you use it?
Use this agreement when the owner wants to control material quality and costs directly but needs a professional to manage site labor. If the contractor is expected to provide both materials and labor, use a Lump Sum Building Contract instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Scope of Work | Obliges the Contractor to clear the site and complete the building according to plans using materials supplied by the Owner. |
| 2 | Payment Terms | Requires the Owner to pay the specified labor sum within six months of the Contractor handing over the completed works. |
| 3 | Completion Date and Penalties | Imposes a daily forfeiture of a specified Rupee amount for every day the building remains uncompleted after the agreed deadline. |
| 8 | Defects Liability | Requires the Contractor to repair any defects, shrinkage, or faults appearing within six months after the completion of the works. |
| 14 | Progress Payments | Provides for monthly payments equal to 80 per cent of the value of work executed during that calendar month. |
| 15 | Arbitration | Mandates that disputes be referred to a sole arbitrator under the provisions of the Arbitration and Conciliation Act, 1996. |
Who it's for
- a landowner in India who has already purchased building materials and requires a labor-only construction service
- a contractor providing labor and building tools for a project where the employer handles material procurement
- parties looking for a construction contract with fixed daily liquidated damages for project delays
How long it runs and how it's signed
How long
Runs until the work is done
Signed by
Contractor, Owner
Witness
Not required
Notarisation
Not required
Law it's drafted under
Governed by
Arbitration and Conciliation Act, 1996
Refers to
Employees' Compensation Act, 1923
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Tue Jul 7th, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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