Agreement for Constructing a Building (India) by OLL

Open Legal LibraryUpdated 19 Oct 2026

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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

ClauseNameWhat it does
1Construction ObligationsObliges the contractor to use best quality materials and comply with architect-sanctioned plans and drawings for the building works.
2Completion Date and PenaltySets a specific completion deadline and a daily forfeiture of Rs. for each day the building remains uncompleted thereafter.
4Architect's Power to ReplacePermits the architect to terminate any workmen deemed incompetent or acting improperly during the construction period.
6Defective WorkmanshipRequires the contractor to redo unfit or improper work at their own expense to the architect's satisfaction.
10Sub-contracting RestrictionProhibits the contractor from assigning or sub-contracting any part of the works without the architect's express agreement.
12Remuneration and PaymentSpecifies 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

How long
Runs until the work is done
Stated duration
on or before the …..day of ……
Signed by
Owner, Contractor
Witness
Required
Notarisation
Not required
Also needed
Completion Certificate from Authorities required
Jurisdiction
India
Document info
MS Word. Document created on Fri Jul 17th, 2026. Last updated on Mon Oct 19th, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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