Agreement for Construction of Building Between Owners and Contractors on Turnkey Basis (India) by OLL
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Agreement for Construction of Building between the Owners and The Contractors on Turnkey Basis
This Agreement made at ................ on this .................. day of .......... 2000,
between
A S/o B resident of .............................
(hereinafter referred to as "the Employer", which expression shall unless repugnant to the context or meaning thereof, be deemed to include his heirs, legal representatives, executors and administrators) of the ONE PART
and
XYZ Co. Ltd.,
a company incorporated under the Companies Act, 1956 and having its registered office at ......................................
(hereinafter referred to as "the Contractors" which expression shall, unless repugnant to the context or meaning thereof, be deemed to include its successors and assigns) of the Other Part.
Whereas the employer is desirous of constructing XYZ Bungalow and its vacant land bearing Final Plot No. ............... Survey No. ............... Khasra No. ............ situate, lying and being at .................. Tehsil and District ................... (hereinafter referred to as "the said property") and the contractors have offered to construct the same on a 'turnkey basis' and also to prepare the site layout plans, preliminary sketch designs, architectural drawings, structural drawings, service drawings and all other detailed plans and drawings as may be necessary for the proper construction and completion of the said works and also obtain necessary permissions from the Municipal Corporation ........... and other local authorities for executing and completing the said works as hereinafter specified upon and subject to the terms and conditions set forth herein and the conditions set forth in the special conditions hereto annexed and marked as Annexure 1 (all of which are collectively hereinafter referred to as "the said works") at the rate of Rs. .......... per sq. ft. of the built up area of the buildings (hereinafter referred to as "the said contract amount").
and Where as The employer has agreed to appoint the contractors for the said works; and
and Where as the contractors have requested the employer to execute these presents which he has agreed to do so.
Now This Agreement Witnesseth as Follows:
In consideration of the said contract amount to be paid at the times and in the manner set forth in the Schedule of Payments hereto annexed, the contractors shall on and subject to the said conditions, execute and complete the said works more particularly described in Schedule 1 annexed hereto and shown on the said drawings, strictly in accordance with the general specifications annexed hereto and marked as Annexure III.
2. The employer shall pay the contractors the said contract amount or such other sum as shall become payable at the times and in the manner specified in Annexure II.
3. For the purposes of this contract, "built up area" means the total a covered area of the building at floor level out-to-out measurement of wall surface (architectural projection excepted) and shall be inclusive of staircase and balconies.
4. The contractors shall prepare layout plans and general building plans in consultation with the employer and get the same approved by the Municipal Corporation of ......................
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This template is a comprehensive turnkey construction agreement between a property owner and a contractor for the building of a residential bungalow. It covers everything from architectural design and obtaining municipal permits to the actual construction, labour costs, and material supplies for a fixed rate per square foot.
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About this template
What is this template?
This is a fixed-rate construction contract where the contractor assumes responsibility for both the professional design and physical execution of a building project. It is not a simple labor contract or a materials-only supply agreement; it specifically bundles municipal approvals, architectural drawings, and utility connections into the total price. It defines the 'built up area' measurement precisely to avoid disputes over how the square footage rate is applied.
When should you use it?
Use this when an owner wants a single point of responsibility for a project from the drawing board to the final plumbing installation. If the owner has already hired a separate architect and only needs a builder for the physical works, use a Standard Building Contract instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Scope of Works | Obliges the Contractors to complete works described in Schedule 1 and Annexure III in exchange for the contract amount. |
| 2 | Payment of Contract Amount | Requires the Employer to pay the contract amount according to the stages specified in the Annexure II payment schedule. |
| 3 | Definition of Built Up Area | Defines built up area as the total covered area at floor level including staircases and balconies for calculation of the Rs per sq ft rate. |
| 4 | Approvals and Permissions | Directs the contractors to prepare layout plans and obtain necessary approvals from the Municipal Corporation. |
| 5 | Inclusions in Contract Amount | Specifies that the fixed rate includes architectural sketches, structural designs, technical supervision, construction materials, and labor wages. |
Who it's for
- an individual owner in India engaging a company for full-service bungalow construction
- a contractor providing design-build services on a fixed price per square foot basis
- parties requiring a contract that bundles architectural services with physical construction labor and materials
How long it runs and how it's signed
Law it's drafted under
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