HYPOTHETICAL ON BUILDER AGREEMENT

Team 2 Consisting of Ajit Jaiswal Suyash Pandey Aryan Jain Pankaj Singh Divyanshu
Baraiya Nripraj Bhati

Since the inception of JNLU in 1995 there was no specific body/authority to deal with
Student related queries, due to which there was no proper communication channel between
students and the administration. After due deliberations, a Student’s Union (SU) was formed
to deal with students’ grievance on 10th September 2019. However, the SU did not have their
own office for proper functioning. On 17nd October 2019 a tender was issued for the
construction of a SU building on 1000 sqft. area. There were several bids received by the
Institutions. Based on best quotation the Institution finalized a bid of SYZ Construction Co.
Pvt. Ltd. The bid was finalised for INR 1Cr. The terms of contracts were:

1. The building is a commercial building with two floors and shall be completed within
the span of one year.
2. 40% of the bid amount was to be paid to the contractor by the Institute at the time of
the commencement of the contract.
3. The contract commenced on 4rd December 2019.
4. The contractor shall be responsible for procuring material and labour.
5. In case of any dispute the party will refer to the Arbitration.
6. SYZ Ltd. shall not be liable for any failure or delay in performance due to any cause
beyond their control including fires, floods, strikes, go-slow, lockout, closure,
pestilence, dispute with staff, dislocation of normal working conditions, war, riots,
epidemics, political upheavals, Government action, civil commotion, breakdown of
machinery shortage of labour, acts, demands or otherwise any other cause or
conditions, beyond the control of aforesaid causes or not and the extend the time of
performance on the part of the SYZ by the period as may be necessary to enable SYZ
to effect performance after the cause of delay will have ceased to exit. The provision
aforesaid shall not be limited or abrogated by any other terms of the contract whether
printed or written.

The contract has commenced and the contractor has started constructing the building. In
March 2020, there was a COVID-19 Pandemic outbreak, due to which entire country was
under lockdown and all the activities whatsoever were shut down. The parties have decided
to renegotiate the terms.