Agreement for Construction of Building between the Owners and The Contractors on Turnkey Basis
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About this template
What is this template?
This document is a construction contract for a 'turnkey' project, meaning the contractor is responsible for everything from architectural sketches to municipal approvals. It contains specific definitions for 'built-up area' measurements and includes a defects liability period with retention money. It is not a simple labor-only contract, as the contractor must supply all materials and insurance.
When should you use it?
Use this document when hiring a construction company to deliver a finished building where they handle all technical supervision, labor, and materials. If you are only hiring a contractor to provide labor while you provide the materials, use a labor-only construction agreement instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 6 | Commencement and Completion | The Contractors must begin works within a specific number of days of gaining possession and complete the building within a set month period. |
| 7 | Liquidated Damages | Failure to complete works on time triggers a daily or weekly payment of Rupees [amount] up to a maximum percentage of the total contract value. |
| 9 | Quality of Materials and Workmanship | Materials must match Annexure III specifications, and the Employer may reject and require replacement of any work at the Contractors' own cost. |
| 13 | Insurance | The Contractors are required to maintain a Contractors' All-Risk policy and third-party liability coverage until the building is handed over. |
| 16 | Defects Liability | Contractors must repair faults appearing within a set number of months post-handover, with a percentage of payment retained as security. |
| 21 | Arbitration | Any disputes are resolved by a sole arbitrator under the Arbitration and Conciliation Act, 1996 with English as the proceeding language. |
Who it's for
- an Indian property owner hiring a construction firm for a residential bungalow on a vacant plot
- a contractor providing all-inclusive building services from site layout to obtaining occupation certificates
- parties requiring a construction price calculated by the square foot of built-up area
How long it runs and how it's signed
Law it's drafted under
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