Agreement for Constructing a Building (India) by OLL
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AGREEMENT FOR CONSTRUCTING BUILDING
This construction agreement is made on ……day of …….
Between
MR……………………………………………………………..……..,
Address……………………………………….......................... (as owner) of the First Part
And
MR……………………………………………………………………….,
This is a preview. The full template is free on GitLaw.
This is a standard construction agreement template between a property owner and a contractor for the building of a residential or commercial structure. It outlines the responsibilities of the contractor regarding labor, materials, and adherence to architectural plans, while specifying the payment schedule and penalties for delays.
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About this template
What is this template?
This is a construction services contract for a specific plot of land. It is not a fixed-price contract, as it uses a cost-plus-profit basis for contractor remuneration. It includes specific provisions for architect certification of all work and materials before payments are released.
When should you use it?
Use this when a project requires an architect to act as the primary supervisor and arbiter of quality between the owner and builder. Use a lump-sum construction agreement instead if the total price is fixed regardless of material costs.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Construction Obligations | Obliges the contractor to use best quality materials and comply with architect-sanctioned plans and drawings for the building works. |
| 2 | Completion Date and Penalty | Sets a specific completion deadline and a daily forfeiture of Rs. for each day the building remains uncompleted thereafter. |
| 4 | Architect's Power to Replace | Permits the architect to terminate any workmen deemed incompetent or acting improperly during the construction period. |
| 6 | Defective Workmanship | Requires the contractor to redo unfit or improper work at their own expense to the architect's satisfaction. |
| 10 | Sub-contracting Restriction | Prohibits the contractor from assigning or sub-contracting any part of the works without the architect's express agreement. |
| 12 | Remuneration and Payment | Specifies monthly instalments of Rs. and requires an architect's certificate before the final balance is released. |
Who it's for
- a landowner in India engaging a contractor for building works based on architect-approved plans
- a contractor performing construction on a cost plus percentage profit basis under architect supervision
How long it runs and how it's signed
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