AGREEMENT FOR CONSTRUCTING BUILDING

Open Legal LibraryUpdated 7 Jul 2026

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About this template

What is this template?

This is a construction services contract that operates on a cost-plus-percentage profit model. It is not a fixed-price lump-sum contract. It uniquely empowers a named architect to remove incompetent workmen and certify the completion of monthly building stages before payments are released.

When should you use it?

Use this document when a landowner has already obtained sanctioned plans from authorities and wishes to hire a builder under professional architectural oversight. Use a standard Service Agreement instead if the work does not involve physical building construction on real property.

What's inside

ClauseNameWhat it does
1Standard of WorkThe Contractor must complete all works with best-quality material and in a workmanlike manner to the architect's satisfaction.
2Completion Date and PenaltyThe Contractor forfeits a specific sum of Rs. per day if the building is not finished by the stated date.
3Default and TerminationThe architect may hire alternative workmen and charge the Contractor for costs if the Contractor defaults for a specified number of days.
5Removal of MaterialsThe Contractor must remove unfit materials from the premises within a specified number of days after receiving notice from the architect.
10Sub-contracting and AssignmentThe Contractor is prohibited from engaging sub-contractors or assigning the contract without the architect's express agreement.
12Remuneration and PaymentThe Owner pays monthly installments of Rs. plus a final balance within three months of completion, subject to architect certification.

Who it's for

  • a landowner hiring a contractor for building works on an actual-costs-plus-profit basis
  • a project involving a third-party architect as the primary quality supervisor and certifying officer
  • construction projects where the owner requires a daily financial penalty for late delivery

How long it runs and how it's signed

How long
Runs until the work is done
Signed by
Owner, Contractor
Witness
Required
Notarisation
Not required
Also needed
sanction of plans by concerned Authorities; architect certification for payments
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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