AGREEMENT FOR CONSTRUCTING BUILDING

AGREEMENT FOR CONSTRUCTING A BUILDING

This construction agreement is made on ______ day of ____________,

Between Mr. ____________________, Address ____________________ (as Owner) of the First Part;

And Mr. ____________________, Address ____________________ (hereinafter called the "Contractor") of the Second Part.

Whereas the party of the First Part, being the owner of a plot of land measuring ______ at ____________, more specifically stated in the plan enclosed and therein marked in red;

And whereas the Owner wants to construct a building on the said plot, and has selected Mr. ____________ as architect, who has prepared drawings, specifications and plans for the proposed building;

And whereas the plans, designs, drawings and elevations of the said intended building, and the specifications concerning the works to be done and the materials to be provided in and for the construction of the said building, have been prepared by the said architect, sanctioned by the concerned Authorities, approved by the parties herein, and have been signed for identification by both the parties;

And whereas the Contractor is willing to enter into a covenant for executing the said works according to the architect's said plans, specifications and drawings, on an actual-costs-plus-___%-profit basis.

Now these presents witnesseth, and the parties hereby agree as follows:

1. The Contractor shall construct on the said plot of land a building according to the sanctioned plans, drawings and elevations, and complete all such works with best-quality material and in the most durable and workmanlike manner, to the satisfaction of the said architect; and will in all respects comply with and obey the true intent and manner of the said specifications, plans, drawings and elevations and of this covenant.

2. The Contractor will complete and finish the said building on or before the ______ day of ____________; and if the said building shall not be completed on or before the said date, the Contractor shall forfeit, out of the moneys which shall be due to him under this covenant, the sum of Rs. ______ for each day which shall elapse after the said ______ day of ____________ until the said building shall be completed. Provided that if the Contractor is prevented by a strike among the workmen, or by any eventuality beyond his control, the said architect may extend the time for completing the works for such reasonable period as he may deem fit.

3. If the Contractor becomes bankrupt, or for any reason whatsoever is restrained or delayed in continuing and completing the said works according to the terms/conditions of this covenant, or does not continue with the said works to the satisfaction of the said architect, it shall be lawful for the said architect to leave, or cause to be left, at the usual place of business or abode of the Contractor, an express notice for the said Contractor to continue forthwith and effectually with the said works. In case the said Contractor shall, for ______ days after such notice is so left as stated above, default in forthwith and effectually continuing with the said work, it shall be lawful for the said architect to employ any other workmen — whether by the Contractor or otherwise — to continue with the said works and complete the same, and to pay to the said workmen, out of the moneys which shall be then due to the said Contractor under this agreement, the amount of their charges for the same and for all necessary materials to be found and provided for such completion. If the amount of the balance to the credit of the Contractor is not enough to meet such charges for such workmen and materials, then in that case the said Contractor shall make good by paying such deficiency on demand.

4. If the said architect shall at any time or times consider any of the workmen engaged by the said Contractor on the works to be incompetent or to be acting improperly, it shall in every such case be lawful for the said architect to require such workmen to be removed, and the said Contractor shall without delay replace such workman.

5. If any materials brought on the said premises by the said Contractor shall be considered by the said architect to be unfit or in any way improper, the said Contractor, on express notice to him or his foreman on the premises served by the said architect, shall cause the same to be removed from the ground and continue the said works with materials complying with the specifications/instructions approved by the said architect; and on failing to remove the same within ______ days after such last-stated notice, it shall be lawful for the said architect to cause them to be removed to such place as he may think fit, without answering or accounting for the loss/damage that shall accrue to any materials so removed, and to cause proper materials to be provided in their place, paying all expenditure relating to such removal and replacement out of the moneys becoming due to the said Contractor under this covenant.

6. If the said architect considers any part of the said works to have been done in an unfit and improper manner, the said Contractor will cause the same at once to be pulled down and executed in a proper manner to the satisfaction of the said architect, without any extra charge or expense whatsoever.

7. If the said architect or the Owner shall think fit at any time or times to make any additions, alterations or omissions in the works hereby contracted for, he or they shall serve on the said Contractor express directions for such alterations or omissions, signed by the said architect. Any extra charge by the Contractor relating to such alterations, if certified to be correct by the architect, shall be payable in the same manner and at the same time as hereinafter stated for paying the ultimate balance of the said sum, not exceeding the sum worked out at the agreed rate.

8. Any damage arising from carelessness or accidents of workmen or otherwise — to the said work hereby contracted for, or to the materials or tools therein used, or to the workmen — shall be borne and made good effectually by the said Contractor at his own charges and costs.

9. The Contractor shall use in construction best-quality materials according to the specifications stated herein.

10. The Contractor will not, without the agreement of the said architect, engage any sub-contractor for executing the works hereby contracted for, or any portion thereof, nor assign or underlet the present contract or any portion thereof.

11. Notwithstanding anything contained herein, it will be the sole liability of the Contractor to obey the provisions of law relating to the construction of the said building according to these presents; and the Contractor hereby undertakes to keep the Owner indemnified and harmless against any action, claim, damages, loss or expenses howsoever arising, for any contravention of any mandatory enactments, rules/regulations or any term of this covenant.

12. The Contractor shall be paid Rs. ______ as his remuneration for the supervision made, material used, labour supplied and for the above said building. The payment schedule for the construction will be made in the following manner: Rs. ______ shall be paid per month of building work proceeding, the first instalment to be paid on ____________, and thereafter by the same date ______ of each future month of building work being done; and the balance, if any, within three months of completing the building. Provided that, in the case of each payment, the architect shall certify that work/materials to a sufficient amount have been executed, done or provided by the said Contractor to the satisfaction of the said architect. Provided also that the said Contractor shall not get payment or receive the balance amount of his remuneration till the said architect shall certify, with his own hand, that the whole of the said works have been finished and completed to his satisfaction, and the Completion Certificate from the Authorities has been obtained. The decision of the architect shall be final and binding on the parties.

IN WITNESS WHEREOF, the parties have set their hands this ______ day of ____________.

DATE: ____________
PLACE: ____________

Owner: ________________________

Contractor: ________________________

WITNESSES:
1. ________________________
2. ________________________