Agreement form between Owner
and a Builder for Construction of the Building
This Agreement made at
....................... on this ............. day of ..................2000,
between Shri........................ S/o ....................... resident of
.............................. (hereinafter called 'the owner' 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 M/s ABC Builders & Contractors, a partnership firm
registered under Partnership Act, 1932 and having its registered office at
.................. (hereinafter referred to as 'the builders' which expression
shall unless repugnant to the context or meaning thereof, be deemed to include
every partner for the time being of the said firm, the survivor or survivors or
the legal representatives, executors or administrators of the last survivor of
the Other Part.
Where
as the first party is the owner of the plot of land admeasuring
.................... sq. meters bearing plot No. ........... city survey
No. ...................... Khasra No. .....................
situate, lying and being at ...................... Tahsil and District
...................... (hereinafter referred to as the "said plot of
land") and is desirous of getting a house constructed on the said plot of
land. and Whereas the first party has appointed Shri ................. as the
architect and the said architect has prepared the plans, drawings and
elevations of the said intended house and the specification of the works to be
done and of the materials.
and Where as the second
party is a big contractor and is having vast experience in construction of big
buildings and has agreed to construct the house on the said plot of land.
Now it is Agreed by and between
The Parties as Follows:
1.
The
builders will construct the building on the said plot of land in conformity
with the plans, drawings, specifications and elevations as prepared by the
architect which has been annexed hereto and marked as Annexure A, with the
material of best quality and in the most substantial and workman like manner
and to the satisfaction of the architect.
2.
The
builders hereby undertake to commence the construction within fifteen days of
execution of these presents and complete the construction on or before the
expiry of ................... months from the date of execution of these
presents in accordance with the plans duly approved and sanctioned by the Municipal
Corporation of .................................. and specifications and
conditions as are set out in Annexure A hereunder written.
3.
If
the builders fail to complete the said work within the period as stipulated in
the foregoing provision, the builders shall, at the option of the owner but
without prejudice to the other rights under law of the owner and other
provisions herein, pay liquidated damages calculated at the rate of
Rs.......... per day (but subject to a maximum of 2% of the total contract amount
payable by the owner under this agreement) for the period between the said
stipulated time for completion of the works. The builders hereby specifically
agree and authorise the owner to deduct such liquidated damages, if any, from
any installment of payment becoming due and payable to the builders in terms of
this agreement.
4.
The
owner will pay to the builders a sum of Rs............. out of which the owner
shall pay to the builders weekly such sum as may be sufficient to defray the
expenses incurred by the builders in respect of materials used in the works,
checked and certified by the architect, Rs ......... on the certificate by the
architect that the work upto first floor has been completed, the further sum of
Rs ............. on the certificate by the architect that the work upto second
floor has been completed and the balance shall be paid on the certificate by
the architect that the said works have been completed in all respects according
to the agreement and the builders have at their own expenses removed and
cleared all scaffolding, fencing, unused materials and rubbish from the
premises and made and prepared the bungalow fit for use and habitation and
immediate occupation. However, a sum equivalent to 5 per cent of the total
contract amount payable by the owner under this agreement shall be retained by
the owner as retention money, which shall be paid after a period of 12 months
from the date of handing over the said bungalow complete in all respects and
fit for occupation. The builders hereby agree and undertake to rectify all such
defects as may be found or detected during the period of 12 months. If the
builders fail to rectify the defects pointed out or decline to cure such
defects as pointed by the owner within fifteen days from the date of reporting
to the builders, the owner shall be entitled to have such defects cured by such
other agencies as it may deem fit at the entire cost and risk of the builders
and utilise the retention money; Provided further that in the event of the said
retention money being inadequate to meet such costs, charges and expenses
incurred by the owner for curing the defects in the construction, the builders
shall within 7 days of a demand in writing made by the owner make good the
defect, failing which the builders shall be liable to pay the same together
with the interest at 15% per annum.
5.
The
owner shall allow free ingress to and egress from the premises to the builder’s
servants, employees, sub-contractors and all other persons, who are necessary
in connection with the carrying out of the works under the agreement.
6.
The
builders shall indemnify the owner in respect of all claims, damages or
expenses payable in consequence to any injury to any employee, workman,
nominee, invitee while in or upon the said premises. The builders shall also be
responsible for any damage to buildings, whether immediately adjacent or
otherwise and any damage to roads, streets, foot-paths, bridges or ways as well
as all damages caused to the buildings, and work forming the subject to this contract
by frost, rain, wind or other inclemency of weather.
7.
If
the builders abandon the contract or fail to commence the work or suspend the
progress of the work for 14 days without any lawful excuse under these
conditions, or fail to proceed with the works with such due diligence and fail
to make such due progress as would enable d the works to be completed within
the time agreed upon or fail to remove materials from the site or to pull down
and replace work for seven days after receiving from the architect written
notice that the said materials or the works were defective and rejected by the
said architect or neglect or fail persistently to observe and perform all or
any of the acts, materials or things required by this contract to be observed
and performed by the owner for seven days after written notice shall have given
to the builders requiring them to observe or perform the same and the architect
certifies in writing to the owner to the said effect, then and in any of the
said cases the owner may, notwithstanding any previous waiver, after giving
seven days notice through the said architect in writing to the builders
terminate the licence in favour of the builders and in so far as it relates to
the completion of the remaining construction work, but without thereby
affecting the powers of the architect, or the obligations and liabilities of
the builders, the whole of which shall continue in force as fully as if this
Agreement had not been so determined. And the owner by his servants or agents
may enter upon and take possession of the work, tools, scaffolding, sheds,
machinery, power, utensils and materials lying upon the premises or in the
adjoining lands or roads and use the same as its own property or may employ the
same by means of its own servants and workmen in carrying on and completing the
work or by employing any other contractor or other person to complete the works
and the builders shall not in any way interrupt or do any act, matter or thing
to prevent or hinder such other contractor or other person or persons employed
for completing and finishing the works or using the material and plant for the
works.
8.
When
the said works are terminated in the manner as stipulated in the foregoing
provision, the architect shall give a notice in writing to the builders to
remove their surplus materials and plant, and should the builders fail to as so
within a period of seven days, after receipt thereof by them, the owner may
sell the same by public auction and give credit to the builders for the net
amount realised. The architect shall thereafter ascertain and certify in
writing, what (if any thing) shall be due or payable to or by the owner, for
the value of the said building and materials so taken possession of by the
owner and the expense or loss which the owner shall have been put to in
procuring the work to be completed and the amount, if any, owing to the
builders and the amount which shall be so certified shall thereupon be paid by
the owner to the builders or by the builders to the owner, as the case may be,
and the certificate of the architect shall be final and conclusive between the
parties.
9.
The
builders shall be bound to appoint an engineer competent to receive
instructions from the architect from time to time, on behalf of the builders at
all reasonable hours and all directions given to him by the architect shall be
deemed to have been given to the builders.
10.
The
owner or his representatives shall be entitled to inspect the progress of the
construction work and materials used for the construction and they shall be
entitled to point out to the architect any defects in the construction work,
quality of workmanship or materials d used when such defective work is in
progress or being executed or such material is brought on site. If the
architect will be satisfied about the objections raised, the said architect
shall certify the same in writing and direct the builders to rectify at their
own cost the defect in the said construction work or remove such defective
materials and the same shall be rectified or removed by the builders as
directed.
11.
All
disputes or differences relating to the specifications, designs, drawings and
as to quality of workmanship or material used in the work or as to any other
question arising out of or relating to the contract, design, drawings,
specifications, orders or otherwise in connection with the agreement or the
carrying out of the works, whether during the progress of the work or after the
completion or abandonment thereof shall be referred to the sole arbitration of
two arbitrators, one to be appointed by each party. The arbitrators shall
appoint an umpire before entering upon the reference. The parties would
cooperate and lead evidence, etc. with the arbitrators and if one of the
parties does not cooperate or remains absent at the reference, the arbitrators
or the umpire would be at liberty to proceed with the reference ex-parte. The
arbitrators or the umpire shall keep record of the oral evidence adduced by the
parties and submit the same to the court at the time of filing of the award,
along with documentary evidence produced before them or him by the parties or
their witnesses. The proceeding of the arbitrators or the umpire shall be
recorded in English and a carbon copy whereof shall be furnished to each party.
The arbitrators or umpire shall be entitled to appoint stenographer, for
recording proceedings of the arbitration, consult an expert, after previous
notice to the parties to the reference, the cost whereof shall be borne equally
by the parties. The fees of the arbitrator appointed by a party shall be borne
by the party, so appointing and the fees of the umpire and the other
arbitration expenses shall be borne equally by the parties. The arbitrators
shall make their award, with reasons for the decision, within six months from
the date of entering upon the reference. If the arbitrators have allowed their
time to expire without making an award or have delivered to any party or to the
umpire a notice in writing stating that they cannot agree, the umpire shall
forthwith enter on the reference. The umpire shall make his award within tour
months of entering on the reference or within such extended time, as the
parties may agree. The award of the arbitrators, or umpire, as the case may be,
shall be final, conclusive and binding on the parties and shall not be
challenged on any ground except collusion, fraud or an error apparent on the
face of the award. This reference to arbitration shall be deemed to be a
reference within the meaning of the Arbitration and Conciliation Act, 1996 or
any statutory modification thereof. No action can be taken under this agreement
for the enforcement of any right without resorting to arbitration under this
clause.
12.
This
agreement shall be executed in duplicate, the original shall be retained by the
owner and the duplicate by the builders.
In Witness Where of the
parties have signed these presents and a duplicate thereof, the day and year
first hereinabove written.
Signed and delivered by
.................... the owner
Signed and delivered by M/s
ABC Builders and Contractors, the builders, by its partners
WITNESSES;
1.
2.
