Building Construction Agreement
This Building Construction Agreement is made and entered into at_______, this_________ day of_________, 20______, between ABC Pvt. Ltd, a Realty & Construction Company, incorporated under the Companies Act, 1956, having its registered office at_______________, through its duly appointed Constituted Attorney Shri.____________________, (hereinafter for the sake of brevity, referred to as the ‘Realtor of One Part’) and XYZ, an adult Indian, aged about_______ years, Occ:-________, r/o_________________________, (hereinafter for the sake of brevity, referred to as the ‘Contractor of Second Part’).
WHEREAS, the ‘Realtor of One Part’ is fully seized and possessed of a plot of land admeasuring about_________ sq.mt., being and situate at S.N./C.S/CTS No.___________, in the Revenue Division___________, located near_____________________, Tehsil____________, District______________, Maharashtra State, which it had acquired under a duly registered Sale Deed dated__________, from its predecessor owner Shri.___________________ (the plot, hereinafter for the sake of brevity, referred to as the ‘Said Plot’.)
AND WHEREAS, the ‘Realtor of One Part’ desires to erect on the ‘Said Plot’ a building of ground + 12 storeys comprising 48 flats and 6 commercial units, as per the plans, specifications and drawings sanctioned by the__________________ Municipal Corporation/Municipal Council/Nagar Panchayat etc. and the said Corporation/Council/Nagar Panchayat has already issued IOD and Commencement Certificate for the construction of the said building, subject to the compliance of all terms & conditions set out therein.
AND WHEREAS, the ‘Realtor of One Part’ wanted to engage and appoint a suitable and competent building contractor to undertake and execute the work of erecting the aforesaid building and other ancillary works envisaged therein, as per the specifications, plans and drawings prepared by his Architect.
AND WHEREAS, the ‘Contractor of Second Part’, approached the ‘Realtor of One Part’ and showed his willingness and readiness to undertake and execute the aforesaid building construction agreement in conformity with the requirements of the latter party.
AND WHEREAS, after a round of negotiations both the parties hereto have agreed upon certain terms & conditions vis-à-vis the aforementioned building construction agreement, which they wish to reduce to writing.
NOW THIS BUILDING CONSTRUCTION AGREEMENT WITNESSETH AS HEREUNDER:-
1] The ‘Contractor of Second Part’ hereby agrees to erect a building and such other ancillary civil and masonry works on the ‘Said Plot’ in conformity with the plans, drawings and specifications of the ‘Realtor of One Part’ as sanctioned by the______________ Municipal Corporation/Council/Nagar Panchayat etc. and under the general and particular supervision of Shri.__________________, the Architect appointed by the ‘Realtor of One Part’ and/or such other Architect/s appointed by him in future.
2] The ‘Contractor of Second Part’ hereby agrees that, besides the aforementioned Architect, he shall abide by the guidance, supervision and instructions of M/s.________________________, the RCC Consultants appointed by the ‘Realtor of One Part’ in the matter of execution of RCC works.
3] The ‘Contractor of Second Part’ hereby agrees that he shall be responsible for the procurement/purchase of all the building materials which are necessary for executing the civil works undertaken by him within the meaning of this building construction agreement and he assures the ‘Realtor of One Part’ that he shall purchase/procure the best quality materials, components and ingredients that can be afforded by the specifications and requirements of the ‘Realtor of One Part’. For the removal of doubts, an Illustrative List of general materials, ingredients and components is appended hereto and this list can be further expanded as per the exigencies of circumstances, with the consent of the parties hereto.
4] The ‘Contractor of Second Part’ shall be paid the price of materials, plus 5% handling/transportation charges on the production of original Tax Invoices, subject to the scrutiny and inspection by Architect Shri.___________________ or his delegate. The ‘Contractor of Second Part’ agrees that he shall be duty bound and liable to replace the defective materials (if any), as and when required by Architect Shri______________ or his delegate or successor, with good quality materials as per their specifications and requirements.
5] The ‘Contractor of Second Part’ shall be responsible for the procurement of workmen, both skilled and unskilled and he alone shall be liable for the payment of their wages and other dues in conformity with the relevant labour laws for the time being in force. Moreover, the ‘Contractor of Second Part’ alone shall be liable for the consequences arising out of damage to the goods and/or injury to the workmen or any other persons during the course of execution of this building construction agreement. The ‘Contractor of Second Part’ hereby agrees that he, in order to prevent and minimise the risk of accident, shall provide all necessary security gear, robes and appliances to the workmen in accordance with the relevant laws and regulations for the time being in force. The ‘Contractor of Second Part’ hereby undertakes that he shall ensure at all times that such accidents are averted. The ‘Contractor of Second Part’ hereby indemnifies and keeps indemnified the ‘Realtor of One Part’ and all his officers, agents, servants and nominees from any liability arising out of any loss, damage or injury to the life, limb or property occasioned by any accident on the building site.
6] The ‘Contractor of Second Part’ shall be paid the following fees towards the overall work done by him in furtherance of the said building construction agreement and such fees shall also include the labour and sundry other charges incurred by him. The fees shall be paid in slab-wise manner, subject to the compliance certificate issued by the Architect of ‘Realtor of One Part’. The final instalment due and payable to the ‘Contractor of Second Part’ shall be cleared only after the grant of Municipal Building Completion Certificate. The ‘Contractor of Second Part’ hereby agrees that the decision of the Architect/s appointed by the ‘Realtor of One Part’ in the matter of satisfactory completion of work, shall be final and he hereby undertakes to abide by the same. The fees payable to the ‘Contractor of Second Part’ are tabulated as follows:-
|Sr. No.||Slab/Phase of Building Work||Fees Payable
|Expected time of completion|
|4.||First Floor Slab||Rs______/-||—–|
|5.||Second Floor Slab||Rs______/-||—–|
|6.||Third Floor Slab||Rs______/-||—–|
|7.||Fourth Floor Slab||Rs______/-||—–|
|8.||Fifth Floor Slab||Rs______/-||—–|
|9.||Sixth Floor Slab||Rs______/-||—–|
|10.||Seventh Floor Slab||Rs______/-||—–|
|11.||Eighth Floor Slab||Rs______/-||—–|
|12.||Ninth Floor Slab||Rs______/-||—–|
|13.||Tenth Floor Slab||Rs______/-||—–|
|14.||Eleventh Floor Slab||Rs______/-||—–|
|15.||Twelfth Floor Slab, Terrace and other works||Rs______/-||—–|
7] The ‘Contractor of Second Part’ hereby agrees that he shall strive to complete the works covered by this building construction agreement within the deadline specified in the above table and in the event of his failure to do so the ‘Realtor of One Part’ shall be entitled to deduct a penal sum of Rs______/- for every day during which the default/delay continues. However, where the delay is occasioned by the failure on the part of ‘Realtor of One Part’ in obtaining any necessary permission or sanction from the Government/Local bodies or where the delay is attributable to any litigation initiated by any third party, the ‘Contractor of Second Part’ shall be exonerated from the aforestated penal deduction. Moreover, in case of adverse circumstances created by war, armed hostilities, civil unrest, economic depression, flood, earthquake, tsunami, cyclone etc., the ‘Contractor of Second Part’ shall be entitled to such reasonable extension as the Architect/s appointed by the ‘Realtor of One Part’ may allow.
8] The ‘Contractor of Second Part’ hereby agrees and undertakes that he shall rectify/repair improper/inferior works and complete them as per the specifications of the Architect/s of the ‘Realtor of One Part’ and the said obligations shall continue for a period of 12 months after the grant of Building Completion Certificate/Occupation Certificate.
9] In case of the ‘Contractor of Second Part’ abandoning/refusing the work, the ‘Realtor of One Part’ shall be entitled to terminate the contractor by giving the former a written notice of fifteen days, which may be served upon him personally or left at his last known place of abode/office etc. Where the ‘Contractor of Second Part’ fails to complete his obligations despite the receipt of notice, the ‘Realtor of One Part’ shall be entitled to appoint any other person in his place to undertake and complete the remainder of works from the stage left by the former. In such event the Architect/s of the ‘Realtor of One Part’ shall compute the quantum of work done by the contractor and certify the amount of fees/purchase price to be paid to him. The ‘Contractor of Second Part’, in such event, shall abide by the decision of the Architect/s of the ‘Realtor of One Part’.
SCHEDULE OF WORKS
LIST OF MATERIALS
IN WITNESS WHEREOF, both the parties hereto have set and subscribed their respective hands to this writing the day, month and year, first mentioned hereinabove.
Signed, Sealed and Delivered by
ABC Pvt. Ltd, the withinnamed
‘Realtor of One Part’
in the presence of
Constituted Attorney for
‘Realtor of One Part’
Signed, Sealed and Delivered by
XYZ, the withinnamed
‘Contractor of Second Part’
in the presence of
‘Contractor of Second Part’