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Agreement for Land Development Works at Shangri-La Village Resort
WHEREAS, M/S Shangri-La Village Resort, of Pokhara-Lekhnath Metropolitan City-31, Kaski (hereinafter
referred to as the EMPLOYER) has awarded the Contract for Land Development works at Shangri-La Resort
to Pokhara Construction Pvt. Ltd., Pokhara-Lekhnath Metropolitan City-08, Kaski Nepal (Referred as

Therefore, this Agreement is made on the datebetween Shangri-La

Village Resort, Pokhara-Lekhnath Metropolitan City-31,Kaski a company registered under the company
act 2014 and Pokhara Construction Pvt. Ltd., Pokhara-Lekhnath Metropolitan City-08, Kaski Nepal.



1.1 Contractors Obligations

Contractor should complete the whole scope of Construction works within the stipulated time. If the
Contractor is not able to meet the target and schedule in quality and/or within assigned time, the
Employer reserves the right to sub-contract other party or employ own staff to complete the remaining
part of the works.

The Contractor should appoint a qualified Site In-Charge who should be able to take all actions and
decisions on Employers demand. In case of his absence, the Contractor shall duly appoint a substitute
prior to his absence.

The contractor shall execute exactly and respect the Employers Site Representatives instructions,
procedures and work programs set up by the Employer. A weekly based progress report has to be
submitted to the Employers Site Representative by the Contractor Site Representative.

Contractor shall not be allowed to sub-contract any part/whole part of works to any other party to execute
the awarded project work.

1.2 Contractors Liability

The Contractor will be responsible to accomplish the Civil Works as per BOQ (contract price) and the civil
work specification.

The contractor shall provide:

All kind of taxes and duties for construction works.

Accidental and Health insurance for Contractors employee.
Commission and any other fees, expenses, charges incurred for the Civil Construction.
1.3 Co-Ordination Meeting

Contractors Site In-Charge shall attend a co-ordination meeting organized by the Employer.

During, these meetings, the Contractor shall forecast target dates for the following week and
months of work. The Contractor will consider these objectives seriously and put its utmost effort
in achieving these target works in due course of time.


2.1 Scope of Works

The Construction of civil works to be executed under this Agreement is given in design drawing.
Contractor shall supply all the required materials, consumables and equipment needed to
complete the specified works as per design drawings.

2.2 Contract Price

The total contract price is words,...

and the total Contract Price Schedule is

exclusive of VAT, but inclusive of all taxes, duties, etc. or such other sum as may become payable
under the provisions of the Contract at the times and in the manner prescribed by the Contract.
The price includes all miscellaneous and incidental expenses at site to complete the entire civil
works. The rate quoted and accepted in this agreement shall remain firm till the works get
completed to the entire satisfaction of the Employer.


Specification of civil works shall be as specified as in design drawings.

If any variation and modification required, the Contractor shall receive prior approval from


All the works under this Contract Agreement shall be completed within 75 days from the date of
contract signing i.e. ..

5.1 The Contractor shall be paid after the assessment of site progress, as an interim progress
payment. The payment shall be made within 10 days after submission and approval of bills
from Contractor.

5.2 All invoices will be paid after deducting 3% Retention amount and 1.5% TDS as per prevailing
law of the Government of Nepal within ten days after the certification by Employer
representative that the works has been duly completed. The Retention amount will be
retained as per below mentioned.
Three percent (3%) of Contract Price retained will be released after completion of
Defects Liability Period.

5.3 Tax deduction

From each progress bill amount, as determined by the prevalent rules and regulations of
Nepal Government, shall be deducted and deposited to the concerned Tax Department in the
country as a deposit towards Contractors income tax.

5.4 Advance payment

Ten percent (10%) of Contract Price will be released as an advance payment.


Defect Liability period shall restricted to 60 days from the date of completion of works.


7.1 Liquidated Damages: If the Contractor fails to complete the whole of the Works within the
period specified in the Contract, the Contractor is agreeable for liquidated damages at Rs.
5000 per week of delay with a limit of liability of 10% of the tender total amount. These
liquidated damages shall be in full satisfaction of Employers liability for the said delay. Any
further claims or rights because of delay irrespective of their legal ground are excluded.

7.2 Settlement of Disputes: Any dispute in connection with this Agreement, which cannot be
solved amicably or by employing an expert mediator, which the parties agree upon, shall be
solved by arbitration in accordance with the latest Rules and Regulation of Nepal.
7.3 Governing Law: This Contract shall be governed by and construed according to the laws of
the Republic of Nepal.

7.4 The price quoted is fixed and firm for the duration of the Agreement.

7.5 Tools and Tackles: All tools and tackles for completing above works are in Contractors scope.

7.6 Water, Power and Site Office: Contractor shall arrange all these facilities for completion of

7.7 Security: Contractor shall be responsible for security of all equipment and construction
materials required for the construction of Civil Works. Identity card for all staff is mandatory.

7.8 As Built Drawings: Contractor shall follow the main Contract Agreement. Apart from this, the
Contractor shall do the necessary clearing and stripping of the working area before starting
the job.

7.9 Relation with other Party

Contractor shall carefully protect and take care of all stakes, positions and alignments. He
shall make sure that they are preserved and visible.

The Contractor shall protect any completed civil works at his own cost by relevant means like
wood, plastic or tarpaulin subject to damage until Taking-Over Certificated is issued.
Communication between the Contractor and Employer must be through Contractor.

7.10 The Contractor will be responsible for dealing with local parties, local social/political
authorities and make arrangement for settlement of any dispute or demand within Scope of
Works of the Contract during construction of civil works.

7.11 Variation and Claims: The Contractor shall arrange to carry out the additional works
under the instruction of Employers Representative. Payment and time period of the project
shall be extended accordingly for the additional/variation works which shall be made after
the approval of the Employers Representative.
7.12 Exclusivity and Confidentiality

The Contractor agrees not to disclose or make available to any third party; this Agreement
and/or any information, document and drawing received from the Contractor during
execution of the works, and will impose corresponding obligations of confidentiality to his
personnel and any third party taking in the carrying out of the Contract.


Shangri-La Village Resort Pokhara Construction Pvt. Ltd.

Pokhara-Lekhnath Metropolitan City-31, Kaski Pokhara-Lekhnath Metropolitan
dsfsdfssCity-08, Kaski

9. Contact Officer for Technical Matter

Arjun Mainali Som Raj Thapa

Public Relation Manager Proprietor
Shangri-La Village Resort Pokhara Pokhara Construction Pvt. Ltd.
10. This agreement shall come into force from the date of signing of this contract by the competent
authorities of both parties. It shall remain valid until the contract of this project is fully completed.
This agreement is done in Kathmandu, Nepal in two original copies in English Language, all texts
being equally authentic.

For and on behalf of For and on behalf of

Shangri-La Village Resort Pokhara Construction Pvt. Ltd.

Signature:. Signature:.

Name:. Name:.

Title : Title :

Seal : Seal :

Witnessed By: - Witnessed By:-

Signature:. Signature:.

Name:. Name:.

Title : Title :

Witnessed By: - Witnessed By:-

Signature:. Signature:.

Name:. Name:.

Title : Title :