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CONSTRUCTION CONTRACT

THIS AGREEMENT made on this_______ day of __________

BETWEEN

M/S Dharti Builders a partnership firm, duly registered and existing under the provisions of the Indian
Partnership Act, 1932, having its principal place of business at 557, 9th C road Sardarpura, Jodhpur, Rajasthan-
342003 represented by through partner _________________ aged ____ R/O _________________duly
authorized vide authority letter dated______ passed and signed by all the partners constituting the firm,
hereinafter referred to as the “Promoter” ( which expression shall unless repugnant to the context or meaning
thereof, be deemed to mean and include its successor(s) and permitted assign(s) of the one part.

The promoter no.1 termed as the “Promoters” under this agreement.

The partnership firm M/S Dharti Builders will be referred as “Builders/ Owners” under this agreement.

AND

____________________________________________________________

___________________________________________ (which expression shall unless repugnant to the context


or meaning thereof, be deemed to mean and include its authorized representatives, successor(s) and permitted
assign(s) of the other part.

The Labor contractor herein referred as “Contractor” under this agreement.

WHEREAS THE PROMOTERS DECLARE THAT

The scheduled land is earmarked for the purpose of development of ___________________ and the project
shall be known as _______________________

The Owner is undertaking a plotting project (hereinafter referred to as the said works) on the said land as per
sites plan prepared by ____ and approved by __________, the copies thereof are annexed to this agreement

WHEREAS THE LABOR CONTRACTOR DECLARES THAT

The Contractor is engaged in construction activities for a long time and having good experience in construction.
The contractor has agreed to construct the said works as per the said site/sites plans on the terms and conditions
herein after appearing.

NOW IT IS MUTUALLY AGREED BETWEEN THE PARTIES AS UNDER:

COMMENCEMENT OF WORK

The Contractor will clear and prepare the said plot of land for construction of said works as per the said sites
plans.
The contractors will supply all labor viz. masons, laborers, water carriers and other necessary workers required
for the said work to the owner at site provided that the requisition thereof is made .......... hours in advance.

That the contractors agree to construct the flats/villas strictly in accordance with the specifications and
conditions of contract set out in ____ and _________ clause Second and Third Schedules hereunder written;

Provided that the owners shall be entitled to require such changes or alterations in the said plans, as they may
deem necessary to suit their requirements and the contractors agree to undertake to get the said alterations or
changes approved by the concerned authority ................ and execute the said alterations or changes.

PAYMENT

The owners agree to pay to the contractors the remuneration of Rs. ............ and shall reimburse them the
expenses incurred by them in connection with the completion of the said works such costs to include the
following items:

(i) Material for construction such as cement, steel, lime, wood, plumbing materials, etc.

(ii) Wages paid to the workmen labor and employees employed for the execution of the works.

(iii) Salaries of artisans, overseers and engineers employed for the execution of the works.

(iv) Expenses incurred by staff, overseers and engineers for travelling, transporting and hotel bills in discharge
of duties in connection with the construction.

(v) Obtaining of permission and approvals from all the authorities concerned for the construction, supply of
power, drainage and other services for the said works.

(vi) Cost of tools not owned by the workmen, canvas and plank, etc., consumed or rendered unfit during the
execution of the said work.
(vii) Other incidental expenses relating to the execution of the said works.

The cost of the above items shall not be higher than the market rates paid in the locality of the work. The cost
reimbursable to the contractors shall not include the salary of the regular employees of the contractors or
interest on capital employed by the contractors for the execution of the said work

The Contractor shall pay its employees /persons engaged by it the wages which shall not be less the minimum
wages fixed by the Government and as revised from time to time by the Govt. It shall also give such persons all
benefits provided for under any law for the time being in force. The party of the first part shall be at liberty to
satisfy them regarding compliance of the statutory requirements by the Contractor. In case the Contractor does
not pay the minimum wages to any person (s) employed/engaged by it or violates any labor, industrial or other
laws applicable to it, alone shall be responsible for the consequences including for prosecutions if any, and the
party of the first part shall have nothing to do with it.

OWNERS RIGHT OF INSPECTION

The contractors shall keep full and regular account of all materials brought on the site, consumed and balance
lying on the site. The said account books shall be open for inspection to the owners or their representatives’ at
all reasonable times, which shall be entitled to take the copy of any document, register, correspondence or
account maintained by the contractors.

VARIATION

If, in the opinion of the Contractor, any variation or deviation from the said sites plan is necessary in order to
satisfactory completion of the said works, the Contractor shall do so only with the prior permission in writing of
the Owner.

RESPONSIBILITY

The Contractor shall be responsible for all injury and accident to persons employed by it and for damage to the
fittings, fixtures and equipment etc. of the First party arising due to negligence on the part of the Contractor or
its employees. The Contractor shall maintain discipline amongst its employees and shall be responsible for the
conduct and behavior of its worker.
The persons engaged by the Contractor for fulfillment of its obligations under this Agreement shall in no case
be entitled to any benefit, monetary or otherwise which may permissible to the employees of the First party nor
would they be entitled to raise any dispute, demand or claim in this regard or otherwise against the party of the
first part

7. Extension of Time

If due to certain unforeseen/uncontrollable circumstances, the Contractor requires any extension of time for
completing the works, he shall immediately make known the same to the Owner and the Owner may, if he
thinks such request reasonable, grant such extension of time as he may think necessary.

8. Determination of Contract by Owners

If the Owner is not satisfied with the progress of the work or with the quality of materials used or of the
workmanship or violates any provisions of this Agreement, he may call upon the architect to make a report on
the progress of the work. If the architect in his report also certifies that progress is not satisfactory, the Owner
may, after giving ___ days notice, terminate the contract. In such an event, the Owner may then enter upon the
site of the works and may employ another Contractor to complete the same and may pay such contractor the
cost of such completion out of the sum payable to the Contractor under this agreement or any other sum as
agreed to between the Owner and the new contractor.

9. Time for Completion

This agreement shall take effect on the —————–and shall be in force for a period of One year in the first
instance. It may be renewed by mutual consent of the parties hereto for such period as may be determined. The
Agreement can be terminated by either party on giving one months notice in writing to the other. However, in
case of any breach of the Agreement by the Contractor, the first shall have the right to terminate it forthwith
without any notice.

Unless the time is extended under Clause 7 hereof, the Contractor will complete a portion of the works of the
value of not less than Rs.____ on or before _______ , of the value of not less than Rs.____ on or before
_______ and will complete the whole work and will remove from the site of the works all plant, scaffolding,
sheds and other unused materials and leave the works and site clean on or before _______
10. Arbitration
Every dispute, difference, or question which may, at any time, arise between the parties hereto or any person
claiming under them, in respect of any clause of this agreement or in respect of work done or quality of
materials used or in respect of any delay in completion of works, shall be first referred to the architect who shall
state his decision in writing. If any party is not satisfied with the decision of the architect, it may give a notice in
writing to the other party that the matter in dispute be referred to the arbitration of an arbitrator to be agreed
upon and appointed by both the parties. If he shall be unable or unwilling to act, to another arbitrator to be
agreed upon between the parties or failing agreement, to three arbitrators one to be appointed by each party to
the dispute or difference and the two appointed arbitrators shall appoint the third arbitrator who shall act as the
presiding arbitrator and the decision of the arbitrator (or, arbitrators) shall be final and binding on the parties.
Subject as aforesaid the Arbitration and Conciliation Act, 1996 and the rules made there under shall apply to the
arbitration proceedings under this clause. The decision so given by the Arbitrator(s) shall be final and binding
upon the parties.

11. Indemnity
The Contractor shall keep indemnified the Owner from all claims, demands or actions that may be raised
against the Owner by reason of anything done by the Contractor in the course of execution of works under this
Agreement. The Contractor shall be liable for any violation of the appropriate provisions as applicable and will
pay the penalty and the management will not be liable. The contractor shall indemnify the first party against all
the claims raised against the first party with regard to the services being rendered by the contractor.

That this Agreement is the final document and it supersedes all earlier papers letters, correspondence, it Any etc

13. This agreement shall be executed in duplicate. The original shall be retained by the owners and the duplicate
by the -___________

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