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The owner. of a land with a view to get construction made of a multistoried building on the land may invite tenders from one or more contractors. The tenderer in his tender will give general description of the proposed work, plans, drawings, specifications and other documents as may be necessary. The tenderer will also give an estimate of the quantity and cost of materials, labour charges and other costs and the terms of payment.
On consideration of the tender and after consulting the owner's architect, an agreement is entered into with the Contractor. The owner may show his architect the plans, drawings, specifications and other documents for the purpose of construction. Normally the "agreement of construction entered Onto between the owner and the contractor will contain details of work to be done and the rights and obligations of the owner and the contractor and - e part that the architect will play in completion of the work.
The Agreement for construction will contain, inter alia, that the contractor will provide the required labour, materials, water, plant and machinery. The contractor shall execute the work in accordance with the plans, drawings, specification and documents agreed upon by the parties. Both parties will be guided by the instructions of the architect at every stage. The construction, nature of construction, defective construction, remedial work for any defective construction all will be decided and directed by the architect. The progress of construction and terms of payment to the contractor shall be specifically provided for. The time limit for completion of the work, the execution thereof and compensation payable for delayed work and escalation costs should be specified. The responsibility to obtain necessary sanction and the Certificates for the construction, water and electricity connections should be on the contractor who shall be required to obtain the completion Certificates from the Municipality concerned. The owner shall be liable to for any additions or alterations to the agreed plan at the same rate as for the work done under the contract. The owner should be exempted
from the liability to third parties due to any accident during the execution of the work by the contractor and the sole responsibility for that would lie with the contractor who shall take all precautionary measures. Any materials brought on the site and used in construction shall be paid for and any unused material shall be removed immediately on construction being completed. No liability will lie on the owner to any labourer or to any supplier of goods or services or for payment of any bills or cesses or impositions in regard to the said construction. Until the contractor completes construction and completion certificate is obtained, the contractor shall not be entitled to payment of final bills. Any other special requirement of the owner including the mode of settlement of disputes and the work being continued even if settlement proceedings being continued are to be provided for. It is a contract under the Indian Contract Act and most of the provisions of the Act is applicable to such a contract
Contact me for:
1) Drafting an agreement for Construction of Building
2) Direct Contract to build a house
3) Agreement between Builder and Artisan
4) Agreement to construct a Multi-storeyed building etc
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