1. Introduction.

-Building and engineering contracts are those agreements under which a person
undertakes to execute building or civil engineering works for another person. The extent of the
works to be executed may vary from the construction or repair of a small structure to the erection
of large Multiple buildings and housing estates and engineering works of every description and
magnitude. Builders or contractors may vary from the one-man business to large private or public
companies.
 
In some cases a building contract may be constituted without the employer engaging any
professional adviser to guide him. Numerous small building contracts are placed by an employer
for the repair and maintenance of structures, and even for the construction of buildings, for which
the employer relies upon the contractor to guide him as to what should be done. But only in
exceptional cases are large building and engineering contracts likely to be placed by an employer
with a contractor upon designs arid specifications prepared by or on behalf of the contractor
without any professional advice being taken by the employer on his own behalf.
 
More usually, where substantial building or engineering works are projected, the employer,
before he enters into a contract at all, will seek professional advice upon the design of the works
and also upon the preparation of the contract under which they are to be carried out. The
professional advice available to the employer in this respect is normally that of an architect,
engineer or surveyor. These persons may either practice independently or under the direct
employment of the employer. But even in cases where the employer has a staff professionally
competent to advise him, he may in addition employ independent advisers on projects of
importance.
 
The advice Sought by the employer from his architect or engineer may, in the first Instance, be
concerned solely with the practicability and suitability of the Works which the employer may be
intending to construct, necessitating nothing more than a report, though this Will usually also
involve the preparation of preliminary drawings and estimates of the projects together with sketch
designs of the works to be carried out. Only when the employer is satisfied that he wishes the
project to proceed and all necessary statutory consents have been obtained is he likely to require
drawings and specifications to be prepared and a building contract to be offered for tender or
otherwise placed with a contractor. Regrettably, it is usually the practice for the contract drawings
to be of a fairly general character, their primary purpose being to enable prices to be obtained and
the standard forms and after the contract is signed, of further drawings and details called in the
industry working drawings whether or not the work is varied. Usually the architect or engineer
will also be required by his employer to supervise the execution of the works and to certify the
payments due to the contractor and to enable him to do so effectively the building contract will
usually define his powers and obligations. But It should not be forgotten that the building contract
is made between the employer and the contractor, While the duties owed by the architect to the
employer will depend upon his contract express or implied with the employer. It is with the
contracts of employment of the professional advisers of the employer that this Chapter is
concerned, ill particular those of the architect, engineer and quantity Surveyor. These contracts
are not the building contracts proper, which are discussed in the remainder of this book, but since
the position of the architect, engineer or surveyor has Such an important effect on the
subject-matter of the building contract, it may be helpful to examine that position in some detail
as a preliminary to consideration of building contracts generally.
 
In the typical case, the work will be carried Out Upon the land of the employer or building owner,
though in some special cases obligations to build may arise by contract where this is not so e.g.
under building leases and contracts for the sale of land with a house in the course of erection
upon it. These are not building contracts in the proper sense, and are only incidentally noticed.
 
2. Essential conditions of a building or engineering contract.-Creswell in his Treatise on
Building and Engineering Contracts, 5th edition at p. 53, has laid down the following conditions
of an ordinary building or engineering contract, which should be precisely incorporated:
 
(i) Continual access by the contractor to documents which form part of the contract, and
provisions for the settlement of discrepancies therein.
(ii) The contractor to provide all workmanship required, labour, tools, tackle,, water, plant
and materials.
(iii) The acceptance by the contractor of the architect or engineer as the recognised agent of
the employer and provision for his supervision of the works.
(iv) Conditions under which unmixed materials deposited on the site of the works are to
become the property of the employer.
(v) Provision for the condemnation of improper materials and workmanship.
(vi) Removal of such condemned materials or workmanship to be carried out at once.
(vii) Responsibility of contractor for setting out the works.
(viii) Responsibility of contractor for the safety and good condition of the works.
(ix) The giving of notices and payment of fees to local authorities, etc. by contractor.
(x) The indemnity of the employer from liability as to claims resulting from accident to
persons, property or things in relation to the work, insurances, etc.
(xi) Particulars of the appointment and remuneration of the quantity surveyors if and when
employed.
(xii) Provision for the adjustment of errors and omissions in the bills of quantities and
settlement of and payment for variations.
(xiii) Provisions of variations from the drawings and specifications, under the architects or
engineers and/or employer's order and the settlement of variations by way of additions and
omissions.
(xiv) Provision for prime cost and provisional items, sub-letting and subcontracts.
(xv) Interim completion, penultimate and final payments to be made on the architects or
engineer's certificates. Also the manner in which certificates are to be met by the employer.
(xvi) The contractor to complete the works at a given date or earlier, and liquidated damages to
be payable by him in respect of delay. Provision for extension of time.
(xvii) Payment of retention moneys and length of maintenance period and making good defect.
(xviii) Both parties to agree to arbitration in all disputes concerning the contract.
 
In the Central Public Works Department of the Government of India, the various forms which are
printed, relating to different types of contract Inter alia contain the following terms and
conditions:
 
(i) General description of the work to be executed along with their estimated quantities and
the rates payable.
(ii) Payment of earnest money and deduction of certain percentage from the running bills
towards the security deposit refundable after the completion of the work.
(iii) Time allowed for the completion of the work from the date of the written order to
commence the work.
(iv) Forfeiture of the earnest money in case the contractor falls to commence the work.
(v) Liability of the contractor for compensation for delay in the execution and completion of
the work.
(vi) Forfeiture of the security deposit Oil account of delay in the execution of the work.
(vii) Action to be taken when the whole of the security deposit becomes forfeited due to the
delay or failure of the contractor to execute the work.
(viii) Power of the Divisional Officer to take possession of all or any tools, plant, materials and
stores procured by the contractor and lying at the site of works, in case of having taken action
against him on account of delay or non-completion of the work in time or otherwise.
(ix) Extension of time.
(x) Final certificate.
(xi) Intermediate payments and their effect.
(xii) Stores supplied by the Government.
(xiii) Works to be executed according to specifications and designs.
(xiv) Alterations, additions, omissions from and substitutions for the original specifications,
drawings, designs and instructions according to the orders of the engineer-in-charge.
(xv) No compensation payable to the contraction in case of alteration in or restriction of work
to be carried out.
(xvi) Action and compensation payable in case of bad work.
(xvii) Works to be open to inspection.
(xviii) Contractor or responsible agent to be present.
(xix) Notice to be given before work is covered.
(xx) Contractor liable for damage done, and for imperfections for three months after
certificate.
(xxi) Contractor to supply plant, ladders, scaffoldings.
(xxii) Contractor liable for damages from non-provision of lights, fencing, etc.
(xxiii) Contractor liable to pay wages to the labour according to Labour Laws.
(xxiv) Settlement of disputes to be effected by means of arbitration provided in the contract.
(xxv) Specifications of the Central Public Works Department to apply to all the works.
 
Apart from the above conditions there are some more conditions which are made applicable to
some contracts according to their individual nature and the working conditions of the place)
 
3. Different modes of contracts.-There are various modes of building contracts, which are as
follows:
 
(1) Lump sum contract.-In this type of contract, the owner contracts to get the work completed
for an ascertained and specified sum, either payable upon completion of the works or by
instalments. However the specified sum may be increased or diminished depending upon the
value of extra work done and omissions made in accordance with the contract.
 
(2) Contract at scheduled rates.-In this type of contract, the owner contracts to get the work at a
scheduled rate for the different items of work. The contractor is paid for the work at the scheduled
rates. Normally a provision is inserted in such contracts that when the rates have not been given
in the Schedule, the contractor will be paid at fair and reasonable rates.
 
(3) Cost plus profit.-In this type of contract, the owner contracts to pay the actual cost of labour
and material consumed in the work, plus profit at a fixed percentage.
 
(4) Package deal contract.-In this type of contract, the contractor performs some or all of duties
of the surveyor or architect in addition to building the works. Recently such type of contracts are
becoming popular, as it saves costs or time or both compared with ordinary works contracts.
 
(5) Turnkey contract.-The meaning of the phrase turnkey is that upon completion of the work,
the key can be turned and everything will be ready. When the contract is given to the contractor
on the terms that everything becomes ready, the contract is named as turnkey contract. Though it
is used in building contracts, but it has no precise legal meaning.
 
(6) Tenders.-Many times, in Government departments and in the big works, tenders are invited
from two or more contractors who submit their rates for execution of the work and any peculiar
conditions, which the contractors wish to govern their execution of the work. Normally, the
lowest tender is accepted but due to many reasons the tender of the contractor who has quoted
higher rates than lowest tender may be accepted. Therefore, the invitation to tender generally
contains a clause that the employer is not bound to accept the lowest or and tender.
 
4. Arbitration clause.-Normally, arbitration clause is inserted in building and engineering
contracts to the effect that in case dispute arises between the contractor and the owner, such
disputes shall be referred to the architect, who shall state his decision in writing. The decision of
the architect with respect to any of the excepted matters specified in the agreement shall be final
and without appeal. But if the owner or the contractor be dissatisfied with the decision of the
architect on a matter, question or dispute of any kind (except any of the excepted matters), then
the matter shall be referred to the arbitration and final decision of an arbitrator to be agreed upon
and appointed by both the parties or in case of disagreement as to the appointment of a single
arbitrator, to the appointment of two arbitrators, one to be appointed by each party which
arbitrators shall before taking upon themselves the burden of reference appoint an umpire, whose
decision shall be final and binding on the parties.
 
5. Assignment of contract.-In building and engineering contracts, as the contractor is appointed
because of his personal skill, competence, intelligence, integrity and other factors, the contracts
are generally not assignable. In all building agreements, a clause is inserted to the effect that the
contract is personal one and cannot be assigned to any other person. In case the contractor dies
before the completion of the work, the legal representatives of the deceased contractor be entitled
to get the price for the work done upto the date of his death. The legal representative cannot insist
to complete the personal contract of the deceased contractor. However, if the contract is not
personal in nature, the legal representatives, executors or administrators of the deceased
contractor can perform the remaining work and recover payment for it.
 
6. Deduction of income-tax at source.-Section 194C, Income-tax Act provides that any person
responsible for paying any sum to any contractor for carrying out any work should deduct
income-tax at source at the time of payment to the contractor. Section 194C, Income-tax Act
reads as under:
 
"194C. Payments to contractors and sub-contractors.-(1) Any person responsible for paying
any sum to any resident (hereinafter in this section referred to as the contractor) for carrying out
any work (including supply of labour for carrying out any work) in pursuance of a contract
between the contractor and,
 
(a) the Central Government or any State Government; or
(b) any local authority; or
(c) any corporation established by or under a Central, State or Provincial Act; or any
company; or
(e) any co-operative society; or
(f) any authority, constituted in India by or under any law, engaged either for the
purpose of dealing with and satisfying the need for housing accommodation or
for the purpose of planning, development or improvement of cities, towns and
villages, or for both; or
(g) any society registered under the Societies Registration Act, 1860 (21 of 1860) or
under any law corresponding to that Act in force in any part of India; or
 (h) any trust; or
(i) (i)                  any University established or incorporated by or under a Central, State
or Provincial Act and an institution declared to be a University under section 3 of
the University Grants Commission Act, 1956 (3 of 1956); or
(j) any firm
 
shall, at the time of credit of such sum to the account of the contractor or at the time of payment
thereof in cash or by issue of a cheque or draft or by any other mode whichever is earlier, deduct
an amount equal to
 
(i) one per cent in case of advertising,
(ii) in any other case two per cent of such sum as income-tax on income comprised
therein.
 
(2) Any person (being a contractor and not being an individual or a Hindu undivided family),
responsible for paving any sum to any resident (hereafter in this section referred to as the
sub-contractor) in pursuance of a contract with the sub-contractor for carrying out, or for the
supply of labour for carrying out, the whole or any part of the work undertaken by the contractor
or for supplying whether wholly or partly any labour which the contractor has undertaken to
supply shall, at the time of credit of such sum to the account of the sub-contractor or at the time
of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is
earlier, deduct an amount equal to one per cent of such sum as income-tax on income comprised
therein.
 
Explanation I.-For the purposes of sub-section (2) the expression "contractor" shall also include a
contractor who is carrying out any work including supply of labour for carrying out any work in
pursuance of a contract between the contractor and the government of a foreign state or a foreign
enterprise or any association or body established outside India.
 
Explanation II.-For the purposes of this section, where any sum referred to in sub-section (1) or
sub-section (2) is credited to any account whether called "Suspense Account" or by any other
name, in the books of account of the person liable to pay such income, such crediting shall be
deemed to be credit of such income to the account of the payee and the provisions of this section
shall apply accordingly.
 
Explanation III.-For the purposes of this section, the expression "work" shall also include
 
(i) advertising;
(ii) broadcasting and telecasting including production of programmes for such broadcasting
or telecasting;
(iii) carriage of goods and passengers by any mode of transport other than by railways;
(iv) catering.
 
(3) No deduction shall be made under sub-section (1) or sub-section (2) from
 
(i) any sum credited or paid in pursuance of any contract the consideration for which does
not exceed twenty thousand rupees; or
(ii) any SLIM credited or paid before the 1st day of June, 1972; or
(iii) any sum credited or paid before the 1st day of June, 1973, in pursuance of a contract
between the contractor and a co-operative society or in pursuance of a contract between
 such contractor and the sub-contractor in relation to any work (including supply of labour
for carrying out any work) undertaken by the contractor for the co-operative society.
 
(4) Where the Assessing Officer is satisfied that the total 'Income of the contractor or the
sub-contractor Justifies the deduction of income-tax at any lower rate or no deduction of
income-tax, as the case may be, the Assessing Officer shall, on an application made by the
contractor or the sub-contractor in this behalf, give to him such certificate as may be appropriate.
 
(5) Where any such certificate is given, the person responsible for paying the sum referred to in
sub-section (1) or sub-section (2) shall, until such certificate is cancelled by the Assessing
Officer, deduct income-tax at the rates specified in such certificate or deduct no tax, as the case
may be."
 
7. Time and mode of payment of the tax deducted at source to government account.-Rule 30,
Income-tax Rules, 1962 provides the time and mode of payment of tax deducted at source from
the contractors. Rule 30 reads as follows:
 
"30. Time and mode of payment to Government account of tax deducted at source.-All sums
deducted in accordance with the provisions of sections 192 to 194, section 194A, section 19413,
section 1941313, section 194C, section 194D, section 194E, section 194EE, section 194F, section
194G, section 194H, section 194-1, section 194J, section 194K, section 195, section 196A,
section 196B, section 196C and section 196D shall be paid to the credit of the Central
Government
 
(a) in the case of deduction by or on behalf of the Government, on the same day;
(b) in all other cases
 
(i) in respect of sums deducted in accordance with the provisions of section 193, section
194A, section 194C, section 194D, section 194E, section 194G, section 194H, section 194-1,
section 194J, section 194K, section 195, section 196A, section 19613, section 196C and section
196D,
 
(1) where the income by way of interest on securities referred to in section 193 or the income
by way of interest referred to in section 194A or the sum referred to in section 194C or the
income by way of insurance commission referred to in section 194D, or the payment to
non-resident sportsmen or sports associations referred to in section 194E or the income by
way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G
or the income by way of commission or brokerage referred to in section 194H or the income by
way of rent referred to in section 194-1 or the income by way of fees for professional or
technical services referred to in section 194J or the interest or any other sum referred to in
section 195 or the income of a
 
foreign company referred to in sub-section (2) of section 196A or the income from units referred
to in section 196B or the income from foreign currency bonds or shares of an Indian company
referred to in section 196C or the income of Foreign Institutional Investors from securities
referred to in section 194D is credited by a person to the account of the payee as on the date up to
which the accounts of such persons are made, within two months of the expiration of the month
in which that date falls;
 
(2) in any other case, within one week from the last date of the month in which the deduction
is made; and
 
(ii) in respect of sums deducted in accordance with the other provisions within one week
from the date of such deduction:
 
Provided that the Assessing Officer may, in special cases, and with the approval of the Deputy
Commissioner
 
(a) in cases falling tinder clause (i) permit any person to pay the income-tax deducted from
any income by way of interest other than income by way of interest on securities or any income
by way of insurance commission or any income by way of commission or brokerage referred to
in section 1941-1 quarterly on July 15th, October 15th, January 15th and April 15th, and
 
(b) in case falling under clause (ii) permit an employer to pay income-tax deducted from any
income chargeable under the head "Salaries" quarterly on June 15th, September 15th,
December 15th and March 15th.
 
(2) The person responsible for making the deduction from any income chargeable under the head
"Salaries" or in cases covered by sub-section (5) of section 192, the trustees shall pay the amount
of tax so deducted to the credit of the Central Government by remitting it within the time
prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of
India or of any authorised bank accompanied by an income-tax challan:
 
Provided that where the deduction is made by or on behalf of Government, the amounts shall be
credited within the time and in the manner aforesaid ,without the production of a challan.
 
(3) The person responsible for making deduction under sections 193, 194, 194A, 194B, 194BB,
194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-1,194j, 194K, 195, 196A, 196B, 196C and
196D shall pay the amount of tax so deducted to the credit of the Central Government by
remitting it within the time prescribed in Sub-rule (1) into any branch of the Reserve Bank of
India or of the State Bank of India or of any authorised bank accompanied by an income -tax
challan, provided that where the deduction is made by or on behalf of Government the amount
shall be credited within the time and in the manner aforesaid without the production of a challan."
 
8. Issue of certificate of tax deducted at source to the contractors.-The person deducting
income-tax at source is required to give a certificate to the contractor in Form No. 16B. Rule 31,
Income-tax Rules, 1962, which requires the employer to issue a certificate of tax deducted at
source is as under:
 
"31. Certificate of tax deducted at source.-(1) The certificate of deduction of tax at source
Under section 203 to be furnished by any person deducting tax in accordance with the provisions
of
 
(a) section 192 shall be in Form No. 16;
(b) section 193, section 194, section 194A, section 194B, section 194BB, section 194C,
section 194D, section 194E, section 194EE, section 194F, section 194G, section 194-1,
section 194j, section 194K, section 195, section 196A, section 196B, section 196C and section
194D shall be in Form 16A.
 
(3) The certificate mentioned in sub-rule (1) shall be furnished within a period of one month from
the end of the month during which the credit has been given or the sums have been paid or as the
case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder:
 
Provided that where the income by way of interest on securities referred to in section 193 or the
income by way of interest referred to in section 194A or the sum referred to in section 194C or
the income by way of insurance commission referred to in section 194D or the payment to
non-resident sportsmen or sports associations referred to in section 194E or the income by way of
commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the
income by way of commission or brokerage referred to in section 194H or the income by way of
rent referred to in section 194-1 or the income by way of fees for professional or technical
services referred to in section 194J or the interest or any other sum referred to in section 195 or
the income from units referred to in section 196B or the income from foreign currency bonds or
shares of an Indian company referred to in section 196C or the income of Foreign Institutional
Investors from securities referred to in section 196D is credited by a person to the account of the
payee as on the date up to which the account of such person are made, the certificate under
sub-rule (1) shall be issued within a week after the expiry of two months from the month in which
income is so credited:
 
Provided further that the certificate in the case of deduction of tax under section 192 or section
194D may be furnished within one month from the close of the financial year in which such
deduction was made:
 
Provided also that the certificate in cases, other than those mentioned in the second proviso,
where payment of income-tax deducted is permitted quarterly in accordance with clause (a) of the
proviso to clause (b) of sub-rule (1) of rule 30 may be furnished within fourteen days from the
date of payment of income-tax:
 
Provided also that where more than one certificate is required to be furnished to a payee for
deductions of income-tax made during a financial year, the person deducting the tax, may on
request from such payee, issue within one month from the close of such financial year a
consolidated certificate in Form No. 16A for tax deducted during whole of such financial year.
 
(4) Where in a case, the TDS certificate issued under this rule is lost, the person deducting tax at
source may issue a duplicate certificate of deduction of tax at source on a plain paper giving
necessary details as contained in Form No. 16 or Form No. 16A, as the case may be.
 
(5) The Assessing Officer before giving credit for the tax deducted at source on the basis of
duplicate certificate referred to in sub-rule 4), shall get the payment certified from the Assessing
Officer designated in this behalf by the Chief Commissioner or the Commissioner and shall
obtain an Indemnity Bond from the assessee."
 
9. Filing of return to income-tax department regarding tax deducted at source.-Rule 37,
Income-tax Rules, 1962 provides that a person responsible for deducting tax at source should
submit the return in prescribed form and by the end of the prescribed month. The person
deducting income-tax at source from the contractor's bills is required to submit return in Form
26C by the end of June falling in the financial year immediately following the previous year in
which the deduction is made.
 
10. Sales tax on works contract.-The Constitution (Forty-sixth Amendment) Act, 1982 has
amended Article 366, which is a definition clause and introduced sub-Article (29A) to define "tax
on the sale or purchase of goods". Sub-Article (29A)(b) provides that tax on the sale or purchase
of goods includes a tax on the transfer of property in goods (whether as goods or in some other
form) involved in the execution of works contract. After the said amendment, the State has
acquired. power to levy sales tax on such sales. Thereafter a number of States have levied sales
tax on works contract.
 
Works contract has been defined in the Tamil Nadu General Sales-tax Act, 1959 as under:
 
"Works contract includes any agreement for carrying out for cash, deferred payment or other
valuable consideration, the building construction, manufacture, processing, fabrication, erection,
installation, fitting out, improvement, modification, repair or commissioning of any movable or
immovable property."
 
The works contract has been defined on the same lines in all the Sales-tax Acts of various States.
The sales tax is imposed at the time of delivery of goods to the purchaser. Where property in the
materials or equipments used or supplied in execution of a work contract passes as an accretion to
an immovable property, the materials or equipments would become part of the immovable
property at the time of accretion and therefore no tax can be levied on such transaction.
 
Therefore, before execution of agreement to carry out work it should be ensured that whether the
proposed contract is a works contract and if yes, the provision of the related Sales -tax Act should
be complied with and a clause in the agreement should also be incorporated providing for liability
of purchaser for payment of sales tax and compliance on both the parties of the provisions of
State Sales-tax Act.
 
11. The Contract Labour (Regulation and Abolition) Act, 1970.-The Contract Labour
(Regulation and Abolition) Act has been enacted to regulate the employment of contract labour in
certain establishments and to provide for its abolition in certain circumstances. The Act applies
(a) to every establishment in which twenty or more workmen are employed or were employed on
any day of the preceding twelve months as contract labour, (b) to every contractor who employs
or who employed on any day of the preceding twelve months twenty or more workmen. It does
not apply to establishments in which work only of an intermittent or casual nature is performed.
 
Section 2(c) of the Contract Labour (Regulation and Abolition) Act, 1970 defiles a 'contractor' in
relation to an establishment. It means a person who undertakes to produce a given result for the
establishment other than a mere supply of goods or articles or manufacture to such establishment,
through contract labour or who supplies contract labour for any work of the establishment and
includes a sub-contractor. Establishment has been defined as meaning (1) any office or
department of the Government or a local authority; or (ii) any place where any industry, trade,
business, manufacture or occupation is carries on.
 
Workman shall be deemed to be employed as "contract labour" in or in connection with the work
of an establishment when he is hired or in connection with such work by or through a contractor,
with or without the knowledge of the principal employer.
 
12. Registration of principal employer.-Every principal employer of an establishment to which
this Act applies, shall, within such period as the appropriate Government may by notification in
the Official Gazette, fix in this behalf with respect to establishments generally or with respect to
any class of them, make an application to the registering officer in the prescribed form for
registration of the establishment. If the application for registration is complete in all respects, the
registering officer shall register the establishment and issue to the principal employer of the
establishment a certificate of registration.
 
No principal employer of an establishment, to which the Act applies shall in the case of an
establishment required to be registered but which has not registered within the time fixed for the
purpose or in respect of which registration has been revoked, employ contract labour in the
establishment. If an establishment employs contract labour without having it registered, the
principal employer shall be punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to one thousand rupees, or with both, and in the case of a
continuing contravention, with an additional fine which may extend to one hundred rupees for
every day during which such contravention continues after conviction for the first such
contravention.
 
Section 2(g) of the Act provides that "principal employer means (1) in relation to any office or
department of the Government or local authority or such other office as the government or the
local authority, as the case may be, may specify in this behalf; (b) in a factory the owner or
occupier of the factory and where a person has been named as the manager of the factory under
the Factories Act, 1948 the person so named; (iii) in a mine, the owner or agent of the mine and
where a person has been named as the manager of the mine, the person so named; (iv) in any
other establishment, any person responsible for the supervision and control of the establishment.
 
13. Licensing of contractors.-No contractor, to whom the Act applies, shall undertake or execute
any work through contract labour except under and in accordance with a licence issued in that
behalf to the licensing officer.
 
A licence issued by licensing officer may contain such conditions including in particular
conditions as to hours of work, fixation of wages and other essential amenities in respect of
contract labour as the appropriate Government may deem fit to impose in accordance with the
Rules made in this regard.
 
The provisions of the Act and Rules made thereunder provide that the contractor will have the
following obligations:
 
(i) In every establishment to which the Act applies and wherein work regarding the
employment of contract labour is likely to continue for six months and wherein contract labour
numbering one hundred or more are ordinarily employed, an adequate canteen shall be provided
by the contractor for the use of such contract labour within 60 days of the date of the
commencement of the employment of contract labour.
(ii) In every place, wherein contract labour is required to halt at night in connection with the
work of an establishment (a) to which the Act applies; and (b) in which work requiring
employment of contract labour is likely to continue for three months or more, the
contractor shall provide and maintain rest rooms or other suitable alternative
accomodation within 15 days of the commencement of the employment of contract labour.
(iii) The contractor employing contract labour in connection with the work of an
establishment to which the Act applies shall provide and maintain a sufficient supply of
wholesome drinking water for the contract labour at convenient places.
(iv) The contractor employing contract labour in connection with the work of an
establishment to which the Act applies shall provide and maintain a sufficient number of latrines
and urinals of the prescribed types, so situated as to be convenient and accessible to the
contract labour in the establishment.
(v) The contractor employing contract labour in connection with the work of an
establishment to which the Act applies will provide and maintain adequate and suitable facilities
for washing for the use of contract labour employed therein.
(vi) In every establishment coming within the scope of the Act, there shall be provided and
maintained so as to be readily accessible during all working hours First Aid Boxes at the rate of
not less than one box for 150 7 contract labour or part thereof ordinarily employed.
 
14. Payment of wages to contract labour and liability of principal employer and contractor
in this regard.-A contractor shall be responsible for payment of wages to each worker employed
by him as contract labour. The contractor shall fix wage periods in respect of which wages shall
be payable and no wage period shall exceed one month. The wages of every person employed as
contract labour in an establishment or by a contractor where less than one thousand such persons
are employed shall be paid before the expiry of the seventh day and in other cases before the
expiry of tenth day after the Ist day of the wage period in respect of which the wages are payable.
 
15. Nomination of a representative by principal employer at the time of disbursement- of
wages by contractor-Every principal employer shall nominate a representative duly authorised
by him to be present at the time of disbursement of wages by the contractor and it shall be the
duty of such representative to record under his signature a certificate at the end of the entries in
the Register of wages or the Register of wages-cum-muster roll, as the case may be, in the
following form:
 
"Certified that the amount shown in column No ……………… has been paid to the workman
concerned in my presence on ………………at ………………
 
It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the
authorised representative of the principal employer.
 
16. Liability of principal employer in case of failure of compliance of obligation by the
contractor.-If any amenities required to be provided for the benefit of the contract labour
employed in an establishment viz. sufficient supply of wholesome drinking water, a sufficient
number of latrines and urinals, washing facilities and first-aid box facilities, are not provided by
the contractor within the prescribed time, such amenities shall be provided by the principal
employer within seven days of the expiry of the period laid down. All expenses incurred by the
principal employer in providing the amenities may be recovered by the principal employer from
the contractor either by deduction from any amount payable to the contractor under any contract
or as a debt payable by the contractor.
 
If the contractor fails to make payments of wages within the prescribed period or makes short
payment, then the principal employer shall be liable to make payment of wages in full or the
unpaid balance due, as the case may be, to the contract labour employed by the contractor and
recover the amount so paid from the contractor either by deduction from any amount payable to
the contractor under any contract or as a debt payable by the contractor.
 
17. Penalties for contravention of provisions regarding employment of contract
labour.-Whoever contravenes any provisions of the Act or of any rules made thereunder
prohibiting, restricting or regulating the employment of contract labour or contravenes any
condition of a licence granted tinder the Act, shall be punishable with imprisonment for a term
which may extend to three months, or with fine which may extend to one thousand rupees or with
both, and in the case of a continuing contravention, with an additional fine which may extend to
one hundred rupees for every day during which such contravention continues after conviction for
the first such contravention.
 
If the person committing an offence under the Act is a company, the company as well as every
person in charge and responsible to the company for the conduct of its business at the time of
commission of the offence shall be deemed guilty of the offence and shall be liable to be
proceeded against and punished accordingly, provided that any such person will not be liable to
any punishment , if he proves that the offence was committed without his knowledge or that he
exercised due diligence to prevent the commission of such offence.
 
Where any offence Linder the Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of or that the commission of the
offence is attributed to any neglect on the part of any director, manager, managing agent or such
other officer of the company, such director, manager, managing agent or such other officer shall
also be deemed to be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.
 
18. Precaution should be taken to employ building contractor about the compliance of
Contract Labour (Regulation and Abolition) Act, 1970-The employer, while employing
building contractor for the construction of buildings should ensure that if the provisions of
Contract Labour (Regulation and Abolition) Act, 1970 are applicable in employing him, the
contractor is having a licence for employing contract labour and the employer should also register
himself under section 7, Contract Labour (Regulation and Abolition) Act, 1970 and other
provisions of the said Act and Rules made thereunder are complied with by the contractor failing
which the principal employer becomes liable for providing amenities and payments of wages to
the contract labour employed by the contractor in the establishment.
 
PRECEDENTS
 
1.AGREEMENT FOR CONSTRUCTION OF BUILDING BETWEEN THE OWNERS
AND THE CONTRACTORS ON TURNKEY BASIS
Parties THIS AGREEMENT made at…………….on this…………….day
  of ..........20……..between A S/o B resident of…………….(hereinafter
  referred to as "the Employer", which expression shall unless repugnant to the
  context or meaning thereof, be deemed to include his heirs, legal
  representatives, executors and administrators) of the ONE PART and A B Co.
  Ltd., a company incorporated under the Companies Act, 1956 and having its
  registered office at………… (hereinafter referred to as "the Contractors"
  which expression shall, unless repugnant to the context or meaning thereof, be
  deemed to include its successors and assigns) of the OTHER PART.
Recitals  
  WHEREAS
Employer  
desires to (1) The employer is desirous of constructing a bungalow on its vacant land
construct bearing Final Plot No . …………….Survey No ……………. Khasra No .
  …………….situate, lying and being at……… Tehsil…………….and
  District…………….(hereinafter referred to as "the said property") and the
  contractors have offered to construct the same on a 'turnkey basis' and also to
  prepare the site layout plans, preliminary sketch designs, architectural
  drawings, structural drawings, service drawings and all other detailed plans
  and drawings as may be necessary for the proper construction and completion
  of the said works and also obtain necessary permissions. from the Municipal
  Corporation…………….and other local authorities for executing and
  completing the said works as hereinafter specified upon and subject to the
  terms and conditions set forth herein and the conditions set forth in the special
Agreement for conditions hereto annexed and marked as Annexure I (all of which are
appointment of collectively hereinafter referred to as "the said works") at the rate of
contractors Rs . .......... per sq. ft. of the built up area of the buildings (hereinafter referred
  to as "the said contract amount").
   
Testatum (2) The employer has agreed to appoint the contractors for the said works; and
   
Contractors (3) The contractors have requested the employer to execute these presents
to complete which he has agreed to do so.
works  
  NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
   
  (1) In consideration of the said contract amount to be paid at the times and in
Payment to the manner set forth in the Schedule of Payments hereto annexed, the
Contractors contractors shall on and subject to the said conditions, execute and complete
from compl- the said works more particularly described in Schedule I annexed hereto and
etion of work shown on the said drawings, strictly in accordance with the general
  specifications annexed hereto and marked as Annexure III.
Definition of  
built up area (2) The employer shall pay the contractors the said contract amount or such
  other sum as shall become payable at the times and in the manner specified in
  Annexure 11.
Preparation of  
layout plans  
and other  
building plans (3) For the purposes of this contract, "built up area" means the total covered
  area of the building at floor level out-to-out measurement of wall surface
Consideration (architectural projection excepted) and shall be inclusive of staircase and
to be paid to balconies.
Contractors  
  (4) The contractors shall prepare layout plans and general building plans in
  consultation with the employer and get the same approved by the
  Municipal Corporation of ......................
   
   
   
  (5) It is hereby agreed that the contract amount shall be inclusive of -
   
   
   
  (a) Preparation of the layout plans, general building plans, detailed
  architectural drawings, sketches, structural drawings and designs for
Plans will be execution.
property of (b) Technical supervision of the works.
Employer (c) Obtaining of permission and approvals from all the authorities for the
  construction, supply of power, water, drainage and other services for the said
  works.
Alteration of (d) Cost of all materials for construction.
drawings and (e) Wages of labour, technical supervisors, all other workers and staff
nature of work required for execution of the said works in accordance with the general
by employer specifications in Annexure Ill.
  (f) Cost of all electrical, sanitary, and plumbing fittings.
Time for (g) Cost of all other items as mentioned in special conditions in Annexure
completion I hereto.
of works  
  (6) The layout plans, general building plans, detailed architectural drawings
Contractors and other drawings shall be and remain the property of the employer. All the
to comply with drawings shall remain in custody of the contractors during the progress of the
statutes and work and they shall deliver them to the employer on the performance of the
bye-laws said works or termination of the contract.
   
  (7) The employer may require alteration of the drawings and the nature of the
  work by adding or omitting any items of work or having portions of. the same
Place of carried out. The employer shall make payment for the alterations at such rates
payment to as may be mutually agreed upon.
contractors  
   
Settlement of (8) The contractors shall commence the work within 15 days of the handing
disputes by over of the site to them and complete the entire work within
arbitration ……….........months thereafter, subject nevertheless to the provision for
  extension of time as provided in the said conditions.
 
  (9) The contractors, while carrying out the said works, shall comply with the
  provisions of all laws, rules and bye-laws for the time being in force affecting
  the said works and will give all necessary notices to and obtain the requisite
  sanction of the concerned local authorities in respect of the said works and
  will comply with the building and other regulations of such authority and will
  keep the employer indemnified against all fines, penalties and losses incurred
  by reason of the breach of the contractors of any such laws, bye-laws and
  regulations.
   
  (10) The employer shall make all payments under this contract
  at........................
   
   
   
  (11) In case any dispute or difference should arise between the parties,
  whether in respect of quality of material used by the contractors or work done
Execution of or in respect of delay in completion of works or in respect of payment of extra
Agreement work required to be done and so executed or in respect of measurement of
  work done or in respect of delay of payment to the contractors or touching the
Testimonium interpretation, fulfilment of any of the terms of these presents or any other
  matter arising out of or in connection with these presents or the carrying out of
  the work, shall be referred to arbitration of two arbitrators, one to be appointed
  by each party. The arbitrators shall appoint a third arbitrator who shall act as
Execution Presiding Arbitrator before entering upon the reference. The arbitrator or
  arbitrators, as the case may be, shall be entitled to consult any expert, after
previous notice to the parties, the cost whereof shall be borne by the parties
equally. The proceedings of the arbitrators shall be recorded in English, a copy
whereof shall be furnished to each party. The provisions of the Arbitration and
Conciliation Act, 1996 so far as applicable and are not inconsistent or
 repugnant to these presents, shall apply to this reference to arbitration. The
cost of the reference and award shall be in the discretion of the arbitrators,
who may direct by whom and in what manner, the same or any part thereof
shall be paid. The award of the arbitrator or arbitrators shall be final and
binding on the parties and the parties, their executors and administrators shall
on their respective parts obey, abide by the award and shall not challenge on
any ground excepting fraud or collusion or error apparent on the face of the
award. It is hereby agreed between the parties that the parties shall resort to
arbitration, before filing any suit for the enforcement of any right under these
presents.
 
(12) This agreement shall be executed in duplicate. The original shall be
retained by the employer and the duplicate by the contractors.
 
IN WITNESS WHEREOF the employer has set his hands to these presents
and a duplicate hereof and the contractors have caused its common seal to be
affixed hereunto and a duplicate hereof the day and the year first hereinabove
written.
 
WITNESSES Signed and delivered by the hand of Shri A
1.
2. The common seal of A.B. Co. Ltd. Was hereunto affixed
pursuant to the resolution passed by the Board of Directors at the
meeting held on......................in the presence of Seal
Shri ...................... a director of the company, who has signed
in token thereof Signatures
2. AGREEMENT FORM BETWEEN OWNER AND A BUILDER FOR
CONSTRUCTION OF THE BUILDING
Parties THIS AGREEMENT made at…………….on this…………….day
  of .............20……between Shri …………….S/o ...................... resident
  of……………. (hereinafter called 'the owner' which expression shall unless
  repugnant to the context or meaning thereof, be deemed to include his heirs,
  legal representatives, executors and administrators) of the ONE PART and
  M/s A B Builders & Contractors, a partnership firm registered under
  Partnership Act, 1932 and having its registered office at…………….
  (hereinafter referred to as 'the builders' which expression shall unless
  repugnant to the context or meaning thereof, be deemed to include every
  partner for the time being of the said firm, the survivor or survivors or the
Recitals legal representatives, executors or administrators of the last survivor) of the
  OTHER PART.
Owners desire  
to construct WHEREAS
house  
  (1) The first party is the owner of the plot of land admeasuring
  …………….sq. meters bearing plot No…………….city survey No.
Appointment …………….Khasra No …………….situate, lying and being at…………….
of architect Tahsil and District…………….(hereinafter referred to as the "said plot of
  land") and is desirous of getting a house constructed on the said plot of land.
   
Agreement for (2) The first party has appointed Shri…………….as the architect and the said
appointment of architect has prepared the plans, drawings and elevations of the said intended
builder house and the specification of the works to be done and of the materials.
   
Testatum (3) The second party is a big contractor and is having vast experience in
  construction of big buildings and has agreed to construct the house on the said
Obligation to plot of land.
construct  
   
  NOW IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS
   
Commence- (1) The builders will construct the building on the said plot of land in
ment of work conformity with the plans, drawings, specifications and elevations as prepared
and time of by the architect which has been annexed hereto and marked as Annexure A,
completion with the material of best quality and in the most substantial and workman like
  manner and to the satisfaction of the architect.
   
Liquidated (2) The builders hereby undertake to commence the construction within fifteen
damages days of execution of these presents and complete the construction on or before
  the expiry of........months from the date of execution of these presents in
  accordance with the plans duly approved and sanctioned by the Municipal
  Corporation of and specifications and conditions as are set out in Annexure A
  hereunder written.
   
  (3) If the builders fail to complete the said work within the period as stipulated
  in the foregoing provision, the builders shall, at the option of the owner but
Payment to without prejudice to the other rights under law of the owner and other
the builders for provisions herein, pay liquidated damages calculated at the rate of Rs
completion of …………….per day (but subject to a maximum of 2% of the total contract
works amount payable by the owner under this agreement) for the period between the
retention said stipulated time for completion of the works. The builders hereby
money specifically agree and authorise the owner to deduct such liquidated damages,
  if any, from any instalment of payment becoming due and payable to the
  builders in terms of this agreement.
   
  (4) The owner will pay to the builders a sum of Rs..........out of which the
  owner shall pay to the builders weekly such sum as may be sufficient to defray
  the expenses incurred by the builders in respect of materials used in the works,
  checked and certified by the architect, Rs…………….on the certificate by the
  architect that the work upto first floor has been completed, the further sum of
  Rs on the certificate by the architect that the work upto second floor has been
  completed and the balance shall be paid on the certificate by the architect that
  the said works have been completed in all respects according to the agreement
  and the builders have at their own expenses removed and cleared all
  scaffolding, fencing, unused materials and rubbish from the premises and
  made and prepared the bungalow fit for use and habitation and immediate
  occupation. However, a sum equivalent to 5 per cent of the total contract
  amount payable by the owner under this agreement shall be retained by the
Licence to owner as retention money, which shall be paid after a period of 12 months
builder for free from the date of handing over the said bungalow complete in all respects and
ingress to and fit for occupation. The builders hereby agree and undertake to rectify all such
egress from defects as may be found or detected during the period of 12 months. If the
premises builders fail to rectify the defects pointed out or decline to cure such defects as
  pointed by the owner within fifteen days from the date of reporting to the
  builders, the owner shall be entitled to have such defects cured by such other
Builders agencies as it may deem fit at the entire cost and risk of the builders and utilise
covenant to the retention money; Provided further that in the event of the said retention
indemnify money being inadequate to meet such costs, charges and expenses incurred by
owner the owner for curing the defects in the construction, the builders shall within 7
  days of a demand in writing made by the owner make good the defect, failing
  which the builders shall be liable to pay the same together with the interest at
  15% per annum.
Builder's  
failure in (5) The owner shall allow free ingress to and egress from the premises to the
commencemen builders servants, employees, sub-contractors and all other persons, who are
t of work or to necessary in connection with the carrying out of the works under the
proceed with agreement.
works with due  
diligence  
   
   
  (6) The builders shall indemnify the owner in respect of all claims, damages or
  expenses payable in consequence to any injury to any employee, workman,
  nominee, invitee while in or upon the said premises. The builders shall also be
  responsible for any damage to buildings, whether immediately adjacent or
  otherwise and any damage to roads, streets, foot-paths, bridges or ways as well
  as all damages caused to the buildings, and work forming the subject to this
  contract by frost, rain, wind or other inclemency of weather.
   
  (7) If the builders abandon the contract or fail to commence the work or
  suspend the progress of the work for 14 days without any lawful excuse under
  these conditions, or fail to proceed with the works with such due diligence and
  fail to make such due progress as would enable the works to be completed
  within the time agreed upon or fail to remove materials from the site or to pull
  down and replace work for seven days after receiving from the architect
Consequences written notice that the said materials or the works were defective and rejected
of by the said architect or neglect or fail persistently to observe and perform all
termination of or any of the acts, materials or things required by this contract to be observed
contract due to and performed by the owner for seven days after written notice shall have
builder's given to the builders requiring them to observe or perform the same and the
Failure architect certifies in writing to the owner to the said effect, then and in any of
  the said cases the owner may, notwithstanding any previous waiver, after
  giving seven days notice through the said architect in writing to the builders
  terminate the licence in favour of the builders and in so far as it relates to the
  completion of the remaining construction work, but without thereby affecting
  the powers of the architect, or the obligations and liabilities of the builders, the
  whole of which shall continue in force as fully as if this Agreement had not
Builders to been so determined. And the owner by his servants or agents may enter upon
appoint and take possession of the work, tools, scaffolding, sheds, machinery, power,
engineers utensils and materials lying upon the premises or in the adjoining lands or
  roads and use the same as its own property or may employ the same by means
Inspection by of its own servants and workmen in carrying on and completing the work or
owner or by employing any other contractor or other person to complete the works and
architect of the builders shall not in any way interrupt or do any act, matter or thing to
work and prevent or hinder such other contractor or other person or persons employed
material used for completing and finishing the works or using the material and plant for the
  works.
   
  (8) When the said works are terminated in the manner as stipulated in the
Settlement of foregoing provision. the architect shall give a notice in writing to the builders
disputes by to remove their surplus materials and plant, and should the builders fail to as
arbitration so within a period of seven days, after receipt thereof by them, the owner may
  sell the same by public auction and give credit to the builders for the net
  amount realised. The architect shall thereafter ascertain and certify in writing,
  what (if any thing) shall be due or payable to or by the owner, for the value of
  the said building and materials so taken possession of by the owner and the
  expense or loss which the owner shall have been put to in procuring the work
  to be completed and the amount, if any, owing to the builders and the amount
  which shall be so certified shall thereupon be paid by the owner to the builders
  or by the builders to the owner, as the case may be, and the certiticate of the
  architect shall be final and conclusive between the parties
   
  (9) The builders shall be bound to appoint an engineer competent to receive
  instructions from the architect from time to time, on behalf of the builders at
  all reasonable hours and all directions given to him by the architect shall be
  deemed to have been given to the builders.
   
  (10) The owner or his representatives shall be entitled to inspect the progress
  of the construction work and materials used for the construction and they shall
  be entitled to point out to the architect any defects in the construction work,
  quality of workmanship or materials used when such detective work is in
  progress or being executed or such material is brought on site. It the architect
  will be satisfied about the objections raised, the said architect shall certify the
Execution of same in writing and direct the builders to rectify at their own cost the detect in
agreement the said construction work or remove such defective materials and the same
  shall be rectified or removed by the builders as directed.
Testimonium  
  (11) All disputes or differences relating to the specifications, designs,
  drawings and as to quality of workmanship or material used in the work or as
Execution to any other question arising out of or relating to the contract, design,
  drawings, specifications, orders or otherwise in connection with the agreement
or the carrying out of the works, whether during the progress of the work or
after the completion or abandonment thereof shall be referred to the sole
arbitration of two arbitrators, one to be appointed by each party. The
arbitrators shall appoint a third arbitrator who shall act as Presiding Arbitrator
before entering upon the reference. The parties would cooperate and lead
evidence, etc. with the arbitrators and if one of the parties does not cooperate
or remains absent at the reference, the arbitrators would be at liberty to record
of the oral evidence adduced by the parties and submit the same to the court at
the time of filing of the award, along with documentary evidence produced
before them or him by the parties or their witnesses. The proceeding of the
arbitrators shall be recorded in English and a carbon copy whereof shall be
furnished to each party. The arbitrators shall be entitled to appoint
stenographer, for recording proceedings of the arbitration, consult an expert,
 after previous notice to the parties to the reference, the cost whereof shall be
borne equally by the parties. The fees of the arbitrator appointed by a party
shall be borne by the party, so appointing and the other arbitration expenses
shall be borne equally by the parties. The award of the arbitrators shall
be final, conclusive and binding on the parties and shall not be
challenged on any ground except collusion, fraud or an error apparent
on the face of the award. This reference to arbitration shall be deemed
proceed with the reference ex-parte. The arbitrators or the umpire shall
keep to be a reference within the meaning of the Arbitration and
Conciliation Act, 1996 or any statutory modification thereof. No action
can be taken under this agreement for the enforcement of any right
without resorting to arbitration under this clause.
 
(12) This agreement shall be executed in duplicate, the original shall be
retained by the owner and the duplicate by the builders.
 
IN WITNESS WHEREOF the parties have signed these presents and a
duplicate thereof, the day and year first hereinabove written
 
WITNESSES Signed and delivered by……………the owner
1.
2. Signed and delivered by M/s A.B. Builders and Contractors,
the builders, by its partners
 
3. BUILDING AGREEMENT BETWEEN THE OWNERS AND THE CONTRACTOR ON
FEE PLUS COST OF LABOUR AND –MATERIALS
Parties THIS AGREEMENT made at………….on this………….day of
  ………….20………between ABC Ltd., a company incorporated under the
  Companies Act, 1956 and having its registered office at .........................
  (hereinafter called the "owners", which expression shall, unless repugnant to
  the context or meaning thereof, be deemed to include its successors and
  assigns) of the ONE PART and XY Co. Ltd., a company incorporated under
  the Companies Act, 1956, and having its registered office at………….
  (hereinafter called the "Contractor", which expression shall unless repugnant
  to the context or meaning thereof, be deemed to include its successors and
Recitals assigns) of the OTHER PART.
   
Owners owner WHEREAS
of land  
  (1) The owners are absolutely seized and possessed of the plot of land or
  otherwise well and sufficiently entitled to the plot of land bearing No .
  ………….City Survey No . ………….Khasra No………….Tehsil and
Owner District………….which land is more particularly described in the First
desirous to Schedule heteunder written and referred to as "the said land".
construct flats  
  (2) The owners are desirous of constructing flats for its executives as per site
Contractor plans prepared by………….the architects and approved by the Municipal
offer to Corporation of………….true copies whereof are annexed hereto, and marked
construct flats as Annexure A for the purpose of reference.
on fee plus cost  
system (3) The contractor has offered to construct the said flats according to the said
  plan (hereinafter referred to as the said works) on the fee plus cost system and
Testatum on the terms and conditions mentioned hereafter.
   
Obligation to  
build flats  
  NOW IT IS AGREED BETWEEN THE PARTIES AS UNDER:
   
  (1) That the contractor agrees to construct the flats in accordance with the site
  plans annexed hereto and marked as Annexure A, strictly in accordance with
  the specifications and conditions of contract set out in Second and Third
Time for Schedules hereunder written; provided that the owners shall be entitled to
completion of require such changes or alterations in the said plans, as they may deem
flats necessary to suit their requirements and the contractors agree to undertake to
  get the said alterations or changes approved by the Municipal Corporation
  of………….and execute the said alterations or changes.
   
Payment by (2) The contractor will abide by the directions of ............. Architects, during
owners to the progress of the said works and will complete the said works agreed to be
contractor done on or before the expiry of .................
  months from the date of execution of these presents. The contractor undertakes
  that he will execute the said works in the best and soundest way and in the
  most economical manner keeping the interest of the owners in view.
   
  (3) The owners agree to pay to the contractor the remuneration of Rs
  ………….and shall reimburse them the expenses incurred by him 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 labour 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
Contractor services for the said works.
to maintain (vi) Cost of tools not owned by the workmen, canvas and plank, etc.,
account of consumed or rendered unfit during the execution of the said work.
material (vii) Other incidental expenses relating to the execution of the said works.
   
Submission of The cost of the above items shall not be higher than the market rates paid in
bill by the locality of the work. The cost reimbursable to the contractor shall not
contractor include the salary of the regular employees of the contractor or interest on
  capital employed by the contractor for the execution of the said work.
   
Certification of (4) The contractor shall keep full and regular account of all materials brought
contractor's on the site, consumed and balance lying on the site. The said account books
bills by shall be open to inspection to the owners or their representatives at all
architect reasonable times, who shall be entitled to take the copy of any document,
  register, correspondence or account maintained by the contractor.
   
  (5) The contractor shall submit a bill on 10th of each month to the architect
  showing in detail the moneys paid by them on account of the cost of the work
Time for during the previous month for which they have to be reimbursed under the
payment of agreement, with original receipted bills and original rolls for labour checked
bills and certified by the contractor's Chartered Accountants.
   
  (6) The architect will certify the reasonableness of each bill supported by the
Injury to vouchers of expenses and the certificate of architect as to the reasonableness
persons and or otherwise shall be final on the contractor.
property If the architect certifies that any bill submitted by the contractor is on higher
  side, then he (the architect) shall certify the market rate of the items of the said
  bill, (which shall be based on quotations from three reputed dealers) and the
  owners shall make payment of that bill in terms of the architect's certificate.
Contractor  
covenant to (7) The owners will pay the amount of each bill within a period of 15 days
made from the date of receipt of the bill duly certified by the architect, in their
indemnify office.
owners  
   
  (8) The contractor shall be responsible for injury to persons, animals or things
Insurance of and for all structural damages to the property which may arise from the
Works operation or neglect of the contractor or their employees, nominees,
  sub-contractors or their employees, whether such injury or damages arises
  from carelessness, accident or any other cause whatsoever in any way
  connected with the carrying out of construction pursuant to these presents,
Determination  
by owners (9) The contractor shall indemnify and keep the owners harmless against any
  claims, demands, actions or proceedings that may be or adopted against the
  owners or that may be suffered by the owners by reason of anything done by
  the contractors pursuant to any work done
   
   
   
  (10)The contractor shall during the execution of the said works insure them
  against destruction or damage by fire, earthquake, flood, cyclone, etc., to its
  full insurable value and keep insured until the possession of the buildings
  complete in all respects and fit for occupation is handed over to the owners.
   
  (11) If the contractor fail to commence the work or without any lawful excuse
  under these conditions suspend the progress of the works for fourteen days
  after receiving from the architect the notice to proceed or persistently or
  repeatedly refuse or fail to supply properly skilled workmen to proper material
  or persistently disregard the regulations, instructions or directions of the local
  or other authority or violate the terms of this agreement or fail to proceed the
  works with such due diligence arid fail to make such due progress as would
  enable the works to be completed within the time agreed upon and the
  architect has certified that sufficient causes exist to justify the termination of
  the contract, then the owners may terminate the contract after giving the
  contractor seven days notice of their intention to do so. On such termination,
  the owners or their servants may enter upon and take possession of the works
Arbitration and tools, scaffolding, sheds and other materials lying upon the premises and
clause use the same as their own property or may employ the same by means of its
  own servants and workmen in carrying on and completing the works or by
employing any other contractor or other person or persons to complete the
works and the contractor shall not in any way interrupt or do any act, matter or
  thing to prevent or hinder such other contractor or other person or persons
  employed for completing and finishing the said works or using the materials
  and plant for the said works.
   
  In case of termination of the contract, the architect shall thereafter ascertain
  and certify in writing under his hand what shall be due or payable to or by the
  owners, for the value of the said plant and materials so taken possession of the
  owners and the expense or loss which the owners shall have been put to in
  procuring the said works to be completed and the amount, if any, owing to the
  contractor and the amount which shall be so certified shall thereupon be paid
  by the owners to the contractors or by the contractor to the owners, as the case
  may be, and the certificate of the architect shall be final and conclusive
  between the parties.
Execution of  
agreement (12) In case any dispute or difference should arise between the parties,
  whether in respect of quality of material used by the contractor, or work done
Testimonium or in respect of delay in completion of work or any other matter arising out of
  or in connection with agreement or the carrying out of works, shall be referred
to and settled by the architect, who shall state his decision in writing. If any
Execution party is dissatisfied with the decision of the architect, either party (the owners
or the contractors) may give a written notice to the other party through
the architect that the matters in dispute be referred to the arbitration and final
decision of an arbitrator to be agreed upon and appointed by both the parties or
in case of disagreement as to the appointment of a single arbitrator to the
appointment of two arbitrators, one to be appointed by each party which
arbitrators shall before taking upon themselves the burden of reference appoint
a third arbitrator who shall act as the Presiding Arbitrator . The submission
shall be deemed to be a submission to arbitration within the meaning of the
Arbitration and Conciliation Act, 1996 or any statutory modification thereof,
The award of the arbitrator or arbitrators, as the case may be, shall be final and
binding on the parties. The fees of the arbitrator appointed by a party shall be
paid by the party so appointing and the fees of the umpire and other arbitration
expenses shall be borne half and half by the parties. The owners and the
contractors hereby also agree that arbitration under this clause shall be a
condition precedent to any right of action under the contract.
 
(13) This agreement shall be executed in duplicate. The original shall be
retained by the owners and the duplicate by the contractors
 
IN WITNESS WHEREOF the parties have signed these presents and a
duplicate hereof, the day and year first hereinabove written.
 
 WITNESSES Signed and delivered by AB Co Ltd, the within named
1. owners by its Managing Director
Mr………….
2. Signed and delivered by X Y. Co. Ltd., the
within
amed contractors by its Managing Director
Mr………….
4. BUILDING AGREEMENT BETWEEN THE PURCHASER AND VENDORS FOR
THE CONSTRUCTION OF THE BUILDINGS ON TURNKEY BASIS
Parties THIS MEMORANDUM OF AGREEMENT made at………….on
  this………….day of…………. 20………….between AB Co Ltd., a company
  incorporated under the Companies Act, 1956 and having its registered office
  at………….(hereinafter referred to as "the Purchaser" which expression shall
  unless repugnant to the context or meaning thereof, be deemed to mean and
  include its successors and assigns) of the ONE PART and M/s XY
  Constructions, a partnership firm duly registered under the Partnership Act,
  1932 and having its registered office at………….hereinafter referred to as "the
  builders" which expression shall, unless it be repugnant to the context or
  meaning thereof be deemed to mean and include every partner for the time or
  the said firm the survivors or the legal representatives, executors or
Recitals administrators of the last survivor) of the OTHER PART.
Builders  
agreement to WHEREAS the builders are absolutely seized and possessed or otherwise well
sell plot and sufficiently entitled to the piece or parcel of land admeasuring
  about………….sq. metres, situate, lying and being at.....…are particularly
Purchaser described in the First Schedule hereunder written and have agreed to sell to the
desirous of purchaser vide agreement for sale dated .....................
constructing  
flats AND WHEREAS the purchaser is desirous of constructing residential flats for
  its executives on the land agreed to be sold by the builders, more particularly
Agreement to described in the First Schedule hereunder written and hereinafter referred to as
construct flats "the said project".
   
   
  AND WHEREAS the builders have agreed to execute the said project on a
Testatum turnkey basis, on the terms and conditions as are hereinafter set out for a total
  amount calculated at the rate of Rs......per sq. metre of the built up area of the
  flats, which the said amount, is hereinafter referred to as "the contract
Agreement to amount".
Execute works  
  NOW, THEREFORE, THESE PRESENTS WITNESS AND IT IS HEREBY
  AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
   
Powers of (1) In consideration of the contract amount agreed to be paid by the purchaser,
architect subject to the terms and conditions and in the manner set forth in Schedule of
  Payments described in Second Schedule, the builders shall execute and
  complete the said project in accordance with the terms, specifications and
  amenities set out in Annexure I hereunder written.
   
  (2) M/s ……………….Architects, shall be the architect for the said project,
RCC who will prepare all the necessary site plans and designs in relation to the said
consultants project and supervise the said project in accordance with the terms,
  specifications and amenities and render all services for completing the said
Preparation of project and obtain all the necessary occupation certificates and completion
site plans and certificates from the concerned authorities for the said project and the builders
RCC designs will pay professional fees of the architect without any extra cost to the
  purchaser.
   
  (3) M/s…………………will be the RCC Consultants for the project and the
  builders will pay their professional fees without any extra cost to the
  purchaser.
   
  (4) The builders will get the site plans for the said project prepared by the
  architects and necessary RCC designs by RCC Consultants in consultation
  with and subject to the final approval of the purchaser and get the site plans
  approved by the Municipal Corporation at their own cost:
Scope of  
contract Provided that during the execution of the said project the purchaser may
amount require the builders to make such changes or alterations in the said plans to
  suit its requirements, and on such requirements, the builders shall get the said
  alterations or changes duly approved by the Municipal Corporation of or
  such other authority at their own cost and execute the said alterations or
  changes within the aforesaid contract amount subject however that if such
  alterations or changes increase or decrease in the quantities or the amenities or
  variation in the specifications set out in Annexure I hereunder, the purchaser
  shall pay or recover from the builders for such difference at
  such rates as may be mutually agreed upon.
   
  (5) The contract amount will be derived at the rate of Rs ………… sq. metre
  of the built up area of the completed project. The "built up area" shall mean
  the plinth area of all the floors, balconies, and the otlas with roof as shown in
  the approved plans measured frorn their respective outer perimeters. The stair
  case and lift wells with their common passages and landings measured from
  plaster to plaster will be excluded from the calculation of built up area. The
  areas of the pump room, lifts, suction tanks, over head tanks, watchman's
  cabins, stilts, terrace, stair case, mumty and the architectural projections shall
  not be taken as built up area. It is expressly agreed by and between the parties
  hereto that the contract amount shall be inclusive of the cost of the following
  works:
  (i) Preparation of site plans, architectural, structural and service drawings
  and obtaining permisson for the same from the Municipal
  Corporation………... or any other local authority.
  (ii) Civil works.
  (iii) Plumbing and sanitary works inside and outside the buildings.
  (iv) Obtaining the municipal water connection from the municipal
  corporation and all internal and external water Supply.
  (v) Drainage works including sewage water disposal arrangements
Time for including septic tanks if required.
completion (vi) Electrical works inside the flats and in the compound, lighting and
of works laying of cables from electric sub-station to the buildings, installation of
  meters, main switches including the obtaining of electrical connection
  from the electric supply undertaking.
  (vii) Construction of pump house, underground and overhead tanks and
  installation of electrically operated water pumps.
  (viii) Compound wall with gates and watchman's hut.
  (ix) Fees of the architects and RCC consultants.
  (x) Wages for labour, cost of technical supervision for execution of the
  construction work and all other incidental expenses relating to the execution
Liquidated of the said project.
damages (xi) All other items of work and amenities as per the Second Schedule.
   
  The said rate shall be firm and shall not be varied under any circumstances
  whatsoever.
   
  (6) The builders shall complete the said project in accordance with this
  agreement, to the satisfaction of the purchaser on or before the expiry
  of………..months from the date of execution of these presents:
Purchaser's  
engineer and Provided however that if in the opinion of the architect, the project be delayed
his powers by force majeure or by reason of any exceptionally inclement weather or by
  reason of civil commotion, local combination of workmen or strike or lock-out
  affecting any of the building, trade or any reason which is beyond the control
  of the builders, due to which work cannot be completed in time, the architects
  may with the previous consent of the purchaser grant a reasonable extension of
  time for completion of the project.
   
  (7) If the builders fail to complete the said project within the period or the
  extended period as stipulated in the foregoing provision, the builders will at
  the option of the purchaser, but without prejudice to the other rights under
  law of the purchaser and the other provisions herein pay liquidated damages at
  the rate of Rs. 500 per day (subject to a maximurn of 2% of the total contract
  amount payable by the purchaser under this Agreement) for the period
  between the said stipulated time for completion of the said project. The
  builders specifically authorise the purchaser to deduct such liquidated
  damages, if any, from any instalment of payment becoming due and payable to
  the builders in terms of this agreement.
Materials and  
workmanship (8) The purchaser shall be entitled to appoint its own engineer, who is referred
to conform to herein as "Purchaser's Engineer" to watch the progress of the work and
description inspect the material and workmanship used in the construction work and such
  other duties as may be entrusted to him by the purchaser. The said Purchaser's
Procurement Engineer shall be entitled to issue written instructions, details, directions and
of material by explanations to the builders relating to following:
builders  
  (i) Variation and/or modification of the design, quality or quantity of
  works or the addition, omissions or substitution of any work.
Payment of (ii) Removal of any sub-standard material that does not comply with the
builders bills specifications from the site and to bring the proper material in
  substitution.
  (iii) Removal and/or re-execution of any work executed by the builders.
  (iv) Dismissal of any person employed by the builders from the work.
  (v) Opening up of any works covered up for inspection.
  (vi) Discrepancy in the drawings between the schedule of quantities and/or
  drawings and/or specifications.
  (vii) Amending and making good of any defects.
Variation to be  
valued by the The builders shall comply and carry out the purchaser's engineer instructions.
Architect  
  (9) The builders shall complete the said project with the material of best
  quality and in the most substantial and workmen like manner and to the
  satisfaction of the architect and Purchaser's Engineer and shall comply with
  and abide by the true intent and manner of description, specifications, terms
  and conditions hereto annexed.
   
  (10) The contractors shall procure all the materials required for the
Assignment construction of the buildings including cement and steel. However, the
of contract purchaser shall co-operate with the builders by making necessary applications
not permissible to the concerned authorities for allotment of controlled commodities like
  cement, steel, if so required, by the builders.
   
  (11) The purchaser shall pay to the builders from time to time by instalments
  in accordance with the Schedule of Payments stipulated in Schedule 11 written
Retention hereunder, subject, however, to retention of the money as stipulated in clause
money and 12 hereinabove. The builders shall submit their bills duly certified by the
defects after Architects for payment. The amount of each bill will be paid by the purchaser
completion within a period of………..days from the date of receipt of the certified bill in
  the office of the purchaser. If the amount of any bill is not paid to the builders
  within a period of……..days for whatsoever reason, the builders shall be
  entitled to charge interest at the rate of twelve per cent per annum from the
  date of expiry of the said period.
   
  (12) Any variation required by the architect or Purchaser's Engineers and
  agreed to by the Architect and executed by the contractors, shall be measured
  and valued by the Architect. The valuation of varied work will be made on the
  basis of the prices of similar work executed under similar conditions by the
  contractors with the employer. If the work of similar nature executed under
Occupation similar conditions is not available, the reasonable price will be paid. However,
certificate from for fixing the reasonable price, the contractors shall submit the vouchers
local authority specifying the time spent upon the work, the material used and such other
  information as may be required by the architect, to the architect. The
  contractors shall also be compensated for any loss/expenses incurred by them
Material paid due to variation in the work.
for will be  
purchaser's (13) The contractors shall not, without written consent of the purchaser, assign
property this contract. However, the contractors may appoint such contractors for
  completion of specified jobs.
   
Builder's  
responsibility (14) The purchaser shall deduct a sum equivalent to ………% of each bill
for safety of submitted by the builders as and by way of retention money, which shall be
material and held by the purchaser as security for the due performance by the builders their
works obligations hereunder in respect of the completion of the project and also to
  rectify any defects as may be found or detected during the period of twelve
Insurance of calendar months from the date of handing over the said buildings complete in
works all respects. The builders hereby agree and undertake that they will rectify, at
  their own cost, all such defects within a period of one month from the date the
  same are notified by the purchaser. If the builders tail to rectify the
  defects pointed out or decline to cure such defects as pointed out by the
  purchaser within one month from the date of reporting to the builders, the
  purchaser shall be entitled to have such defects cured by such other contractor
  as it may deem fit at the cost and risk of the builders and utilise the retention
  money or such other sums as may be found payable to the builders pursuant to
Determination this agreement and pay the balance, if any, after the expiry of the defects
by purchaser liability period mentioned above. In case the said retention money being
  inadequate to meet such costs, charges and expenses incurred by the purchaser
  for curing the defects in the construction, the builders shall make the payment
  to the purchasers within……………days of a demand in writing made by the
  purchasers.
   
  (15) The builders shall procure the occupation certificates from Municipal
  Corporation of to enable the purchasers to occupy and use the buildings on
  completion of the work. The purchaser's engineer shall certify in writing that
  the work has been virtually completed and defects liability period shall
  commence from the date of such certificate.
   
  (16) If the builders have received payment of any unfixed materials intended
  for and/or placed on or adjacent to the work, such materials shall become the
  property of the purchaser and such materials shall not be removed except for
  use upon the works, without the written permission of the purchaser's
  engineer.
   
   
  (17) The builders shall be responsible for the materials lying on the site and
  work-in-progress, until they are handed over to the purchaser in a good
  condition on the completion of the works. If any fittings or fixtures are
  damaged and pointed out by the purchaser or its engineer at the time of taking
  possession of the buildings on their completion, the builders shall replace such
  fittings or fixtures.
   
  (18) The builders shall insure the works immediately on the commencement of
  the project and keep the same insured until the buildings complete in all
  respects and fit for occupation are handed over to the purchaser, against loss or
  damage by flood, earthquake, fire, cyclone, etc. in the joint name of the
  purchaser and the builders for the full amount of the contract. The builders
  shall deposit the policy and receipts for the premium with the purchaser within
Builders one week from the commencement of the works. If the builders fail to insure
liability for the works, the purchaser may so insure the works and may deduct the
actions premium paid from any moneys due or payable to the builders without
against prejudice to the other rights of the purchasers in respect of such default.
purchaser  
  (19) If an order for compulsory winding-up is made against the builders or if
  the builder company pass an effective resolution for winding-up voluntarily or
Purchaser subject to the supervision of the court and the official liquidator has been
may, appointed in such acts of winding-up as the case may be or if the builders shall
by notice, suffer execution or other process of court attaching property to be issued
intimate work against the builders or shall suffer any payment under this agreement to be
not required attached by or on behalf of any of the creditors of the builders; or shall assign
  or sublet this agreement without the consent in writing of the purchaser first
  hand and obtained, or shall charge, encumber this agreement or any payments
Settlement of due or which may become due to the builders herenunder; or if the architects
disputes by shall certify in writing to the purchaser that the builders have abandoned the
arbitration agreement or have failed to commence the works or have suspended the
  progress of works for fourteen days without any lawful excuse or have failed
  to proceed with the works with such due diligence and failed to make Such
  due progress as would enable the works to be completed within the stipulated
  time or have failed to remove the materials from the site or pull down and
  replace work for seven days after receiving from the architects written notice
  that the said material or work is defective or not according to specifications or
  have neglected or failed persistently to observe and perform all or any of the
  acts, matters or things by this agreement to be observed and performed by the
  builders for seven days after written notice shall be given to the builders
  requiring them to observe or perform the same, then the purchaser may
  determine the contract after giving seven days notice in writing to the builders.
  However, on such termination of the contract, the powers of the architect or
  the obligations and liabilities of the builders shall not be affected and shall
  continue in force as fully as if the contract had not been so determined. And
  the purchaser by its servants or agents may enter upon and take possession of
  the works and all materials, tools, scaffoldings, sheds, machinery, etc. lying
  upon the site or the adjoining lands or roads and use the same as their own
  property or may employ the same in carrying out and completing the works by
  employing any other contractor or other person or persons and the builders
  shall not in any way interrupt or do any act, matter or thing to prevent or
  hinder such other contractor or other person or persons employed for
  completing the works or using the materials and tools for the works. The
  architect shall ascertain and certify in writing the amount due or payable to or
  by the purchaser for the value of the materials and the tools so taken
  possession of by the purchaser and the expenses or loss which the purchaser
  has been put to in procuring the works to be completed and the amount which
  shall be so certified, shall be paid by the purchaser to the builders or by the
  builders to the purchaser, as the case may be, and the architect's certificate
  shall be final and conclusive between the parties.
   
  (20) The builders shall be liable and indemnify and keep the purchaser saved,
  defended and harmless against any claims, demands, actions or proceedings
  for any injury to person, animals or things which may arise from the operation
  or neglect of the builders or their employees, sub-contractors or their
  employees, whether such injury or damage arises from carelessness, accident
  or other cause whatsoever in any way connected with the carrying out of
  construction
  to these presents.
   
  (21) If after the agreement, the purchaser for any reasons whatsoever does not
  require the whole or any part of the works to be carried out, it shall give notice
Purchaser's in writing to the builders and thereupon the builders shall not be entitled to the
right for contract amount proportionate to the works so abandoned and to any
examination compensation or otherwise whatsoever on account of any profit which they
of works might have made from the execution of the said project.
   
  (22) In case any dispute or difference arises between the parties,
Builders to whether in respect of specifications, designs, drawings and instructions
deliver plans mentioned in these presents, as to the quality of material used or the
Purchaser quality of workmanship or any delay in payment made by the purchaser
after in accordance with these presents, or in respect of alterations suggested
completion of
by the purchaser or architect or extra work required to be done or
works
  executed or in respect of measurements of work done or payment of the
Execution of work done or not done or otherwise concerning the work or the
agreement execution, or failure to execute the same, whether arising during the
  progress of the work or after abandonment thereof shall be referred to
Testimonium arbitration and final award of a single arbitrator, if the parties thereto
agree in writing, (failing which to two arbitrators one to be appointed by
  by each party) on a reference made to him by any of the parties by notice in
  writing, a copy whereof shall be sent to the other party. The said notice shall
Execution specify the matters which are in dispute or difference and such matters only
and no others will be referred to arbitration. The arbitrators shall appoint third
arbitrator who shall act as Presiding Arbitrator . The parties shall produce
before the arbitrator or arbitrators all books, deeds, papers, accounts, vouchers,
site plans, drawings, and documents within their possession or control, which
the arbitrator, arbitrators or umpire as the case may be, may require and call
for in this or their judgment relating to the matters referred to arbitrators. If
any party neglects or refuses to attend on the reference, without having shown
to the said arbitrator or arbitrators, what the latter shall consider good and
sufficient cause for not attending, the arbitrator or arbitrators shall be at liberty
to proceed ex-parte. If during the arbitration proceeding, any arbitrator dies or
becomes unable to act or refuses to act, the party who had nominated him,
shall appoint another arbitrator to fill up vacancy within one week of such
event. If no arbitrator is appointed in his place, the remaining arbitrator shall
become the sole arbitrator and shall adjudicate upon the disputes referred to
arbitration. The arbitrator or arbitrators, as the case may be, shall record
proceedings in Hindi, a carbon copy whereof shall be furnished to each party
free of cost. The parties shall provide necessary secretarial assistance to the
arbitrator or arbitrators . The proceedings of the arbitration shall be held in
the……….the rent whereof shall be borne by the parties equally. The
arbitrator or arbitrators as the case may be, shall be entitled to consult any
expert, after previous notice to the parties, the cost whereof shall be borne by
the parties equally. The arbitrator or arbitrators as the case may be, shall give
his or their award within four months from the date of entering upon the
reference or such further extended time as may be decided by them, with the
consent of the parties. The cost of and incidental to the reference and award
shall be at the discretion of the arbitrator or arbitrators as the case may be, who
may determine by whom and in what manner the same shall be borne and
paid. This reference to arbitration shall be deemed to be a submission to
arbitration within the meaning of Arbitration and
Conciliation Act, 1996 or any statutory modification thereof. The award of the
arbitrator or arbitrators as the case may be, shall be final, conclusive and
binding and the parties shall not challenge the same on any ground except
fraud, collusion or an error apparent on the face of the award. The parties
 agree that arbitration under this clause is a condition precedent before any suit
for the enforcement of any right under these presents can be brought in any
court. If any question,
dispute or difference is referred to arbitration, the builders shall not delay or
stop the work but shall proceed with the works with all due diligence and the
builders shall not be relieved from their obligations unless the architect gives
a certificate of completion of the work.
 
(23) The purchaser shall have a right to cause a technical examination of the
works and the final bill of the builders including all supporting vouchers,
abstracts, etc., to be made at the time of payment of the final bill. If as a result
of this examination or otherwise, any sum is found to have been overpaid or
over certified, it shall be lawful for the purchaser to recover the sum from the
builders.
 
(24) The builders shall deliver all the plans, detailed drawings and
specifications to the purchaser after the completion of the said works or etc. to
otherwise terminated under these presents.
 
 
 
 
(25) This agreement shall be executed in duplicate, the original shall be
retained by the purchaser and the duplicate by the builders.
 
IN WITNESS WHEREOF the purchaser has caused its common seal to be
affixed hereunto and a duplicate hereof and the builders have signed these
presents and a duplicate thereof on the day and year first hereinabove written.
 
WITNESSES The common seal of AB Co Ltd the within named
purchaser was hereunto affixed pursuant to
the
1. resolution passed by the Board of Directors at the meeting
held on………………. directors, who have signed these presents in
token thereof
2. Signed and delivered by M/s XY Constructions, the within
named Builders by its partners
5. AGREEMENT TO DEMOLISH THE STRUCTURE, CLEAR THE SITE AND TO
CONSTRUCT NEW BUILDING ON THE PLOT
Parties THIS AGREEMENT made at……………..on this……………. day
  of.............. 20…….between A son of Shri …………….resident
  of(hereinafter called 'the Employer') of the ONE PART and X Y
  Constructions, a partnership firm, carrying on the business of builders and
  contractors, having its office at…………….(hereinafter called 'the builders')
Recitals of the OTHER PART
   
Employer WHEREAS
owner of  
bungalow (1) The employer is absolutely seized or otherwise well and sufficiently
  entitled to the old bungalow being House No .
  …………….Mohalla…………….with an area of…………….sq. mts which
Employer bungalow is more particularly described in the First Schedule hereunder
desires to written, and is hereinafter referred to as "the said bungalow".
dismantle  
bungalow and (2) The said bungalow has become very old and the employer intends to
construct a dismantle the said bungalow and construct a new bungalow on the said plot of
new land.
   
Builders offer  
to dismantle  
old bungalow  
and construct (3) The builders are willing to undertake the said job of dismantling and
new bungalow construction of the new bungalow in accordance with the plan and
  specifications set out in the Second Schedule hereunder written.
Testatum  
   
Price for the  
work NOW IT IS AGREED BETWEEN THE PARTIES AS UNDER:
   
  (1) The builders agree to undertake the work of dismantling the said bungalow
  and to construct a new bungalow in accordance with the plan, description and
Materials and specifications set out in the Second Schedule hereunder written (hereinafter
workmanship referred to as "the said works") in consideration of a sum of Rs………..to be
to conform to paid by the employer to the builders in the manner hereinafter provided.
description  
  (2) The builders will dismantle the said bungalow, clear the site and construct
  the bungalow with the best available materials and in workmanship in
  accordance with the directions of the employer's architect (hereinafter referred
  to as the architect) in accordance with the plan, description, and specifications
Builder to set out in the Second Schedule hereunder written. However, the employer may
take away require the builders to alter the drawings and the nature of the work by adding
building or omitting any items of work. Such alterations shall be paid at such rates as
material may be mutually agreed upon.
   
Compliance of (3) The builders shall take away the building material of the old bungalow and
statutes and shall clear and level the plot of land.
bye-laws by  
builders  
   
  (4) While demolishing and constructing the bungalow, the builders shall carry
Time for out the said works in accordance with the law, rules and bye laws for the time
completion of being in force affecting the said works and shall give all the necessary notices
work to and obtain the requisite sanction of the concerned local authorities in
  respect of the said works and shall comply with building and other regulations
  of such authority.
   
  (5) The builders shall complete the said works on or before the expiry
  of……….months from the date of execution of these presents in accordance
  with the plans duly approved by the municipal corporation of…………..and
  descriptions and specifications and other terms and conditions as are set out in
  Third Schedule hereunder written:
   
  Provided however the architect, with the previous consent of the employer,
Periodical may extend the time for completion of the said works, if in his opinion the
payment by works are delayed (a) by force majeure; or (b) by reason of any exceptionally
employer to inclement weather; or (c) by reason of civil commotion, local combination of
builders workman or strike or lock-out affecting any of building trades; or (d) in
  consequence of the builders not having received necessary instructions from
Builder's the architect in due time; or (e) from other causes which the architect may
covenant to certify as beyond the control of the builders.
indemnify  
employer (6) The employer shall pay to the builders, weekly during the progress of the
  work, such sum as may be sufficient to defray the expenses for materials and
  other out of pocket expenses, as certified by the architect.
   
   
  (7) The builders hereby indemnify and keep the employer saved, defended and
Injury to harmless against any claims, demands, actions or proceedings that may be
persons and suffered by the employer by reason of anything done by the builders as a result
property of the builders committing breach of any rules and regulations or causing
  damage to any adjoining property or any individual or otherwise howsoever in
  dismantling the property or constructing the new bungalow on the said
  property or any letters, applications and writings addressed by the builders
  pursuant to such authority as also for the costs, charges and expenses which
  may be incurred or for which the employer may become liable in that behalf.
   
Insurance (8) The builders shall be responsible for injury to persons, animals or things
of works and for all structural damages to the property which may arise from the
  operation or neglect of the builders or their employees, nominees,
  sub-contractors or their employees, whether such injury or damage arises from
  carelessness, accident or any other cause whatsoever in any way connected
  with the carrying out of construction pursuant to these presents. This clause
  shall be deemed to include, inter atia, any damage to buildings whether
  immediately adjacent or otherwise, and any damage to roads, streets,
  foot-paths, bridges or ways as well as all damages caused to the buildings and
  works forming the subject of this contract by frost, rain, wind or other
  inclemency of weather.
   
  (9) The builders shall, within one week from the date of commencement of the
  works, insure the works and keep them insured until the buildings complete in
  all respects and fit for occupation are handed over to the employer, against
  loss or damage by fire, earthquake, flood, cyclone, etc. with an insurer, in the
  joint flames of the employer and the builders for the full amount of the
Determination contract and for any further sum, if called upon to do so by the employer. The
of work by premium of such further sum shall be reimbursed to the builders by the
employer employer. The builders shall deposit the insurance policy and receipts for the
  premia with the employer within fourteen days from the commencement of the
  works, unless otherwise instructed by the employer. In case the builders fail to
  insure as provided above, the employer may so insure the works and may
  deduct the premium paid from any moneys due or which may become due to
  the builders without prejudice to the other rights of the employer in respect of
  such default. In case it becomes necessary to suspend the works due to any of
  the risks covered under the policy, the builders shall, as soon as the claim
  under the policy is settled, or the work reinstated should proceed with all due
  diligence with the completion of the works in the same manner as though the
risk had not occurred and in all respects under the same conditions of
  contract.The builders in case of rebuilding or reinstatement after the risk, shall
  be entitled to such extension of time for completion of the works, as the
  architects shall deem fit.
   
  (10) If the builders (i) have abandoned the contract; or (ii) have failed to
  dismantle the old bungalow and remove, clean and level the plot of land; or
  (iii) have failed to commence the works or have without any lawful excuse
  under these presents suspended the progress of the works for fourteen days
  after receiving from the architect notice to proceed; or (iv) have failed to
  proceed with the works with such due diligence and failed to make such due
  progress as would enable the works to be completed within the time agreed
  upon; or (v) have failed to remove materials from the site or pull down and
  replace work for seven days after receiving from the architect written notice
  that the said materials or work were condemned and rejected by the architect
  under these presents; or have neglected or failed persistently to observe and
  perform all or any of the acts, matters or things by this contract to be observed
  and performed by the builders for seven days after written notice shall have
Liquidated been given to the builders requiring them to observe or perform the same; then
damages and in any of the said cases the employer may, after giving seven days notice
  in writing to the builders, terminate the contract, on such termination of the
  contract the employer by his agents or servants may enter upon and take
  possession of the works and all plants, tools, scaffoldings, sheds, machinery
  and other utensils and materials lying upon the premises or the adjoining lands
Assignment or or roads, and use the same as his own property or and employ the same by
sub-letting means of its own servants and workmen in carrying on and completing the
  works or by employing any other contractor or other person or persons to
Defects after complete the works, and the builders shall not in any way interrupt or do any
Completion act, matter or things to prevent or hinder Such other contractor or other person
  or persons employed for completing and finishing the works or using the
  materials and plant for the works. When the works shall be completed or as
  soon thereafter as convenient the architect shall give a notice in writing to the
  builders to remove their surplus materials and plant, and should the builders
  fail to do so within a period of fourteen days after receipt thereof by them, the
Builders to employer may sell the same by public auction, and give credit to the builders
deliver plans, for the net amount realised. The architect shall ascertain and certify what shall
etc. to be due or payable to or by the employer for the value of the said materials,
employer after plants are so taken possession of by the employer and the amount which shall
completion of be so certified shall thereupon be paid by the employer to the builders or by
work the builders to the employer, as the case may be and the architect's certificate
  shall be final and binding on both the parties.
Arbitration  
clause (11) If the builders fail to complete the said works within the period or
  extended period, the builders shall at the option of the employer, but without
  prejudice to the other rights under law of the employer and the other
  provisions herein shall pay by way of liquidated damages a sum of Rs………
  per day for the entire period of delay and the employer will be entitled to
  deduct such damages from the amount becoming due and payable to the
  builders under this Agreement.
   
  (12) The builders shall not assign this contract to any other builder or
Testimonium contractor, without written consent of the employer.
   
  (13) The builders hereby agree and undertake to rectify the defects pointed out
Execution to them during the period of 12 calendar months from the date of handing over
  the said buildings to the employer. If the builders fail to rectify the defects
  pointed out or decline to cure such defects as pointed out by the employer
within fifteen days from the date of reporting to the builders, the employer
may get such defects cured by such other contractors as it may deem fit at the
entire cost and risk of the builders.
 
(14) The builders shall deliver all the plans, detailed drawings and
specifications to the employer after the completion of the said works or
otherwise terminated Linder these presents.
 
 
 
 
 
(15) All disputes arising between the employer and the builders under this
Agreement during the continuance of this contract or on its completion or on
abandonment thereof, shall be referred to arbitration to a single arbitration
appointed by both the parties. If both the parties do not agree upon the
appointment of single arbitrator, each party shall nominate his own arbitrator
who shall appoint third arbitrator who shall act as the Presiding Arbitrator .
The arbitrator or arbitrators as the case may be shall deliver the award within a
period of six months from the date of entering on the reference. The award of
the arbitrator or arbitrators shall be final and binding on the parties. The
parties agree that arbitration under this clause shall be a condition precedent to
any right of action under the contract.
 
IN WITNESS WHEREOF the employer and builders have signed these
presents, the day and year first hereinabove written.
 
WITNESSES Signed and delivered by A the within
1. named employer
2. Signed and delivered by M/s. X Y. Constructions, the within
named builders by their partners
6. AGREEMENT BETWEEN OWNERS AND LABOUR CONTRACTOR FOR SUPLY
OF LABOUR
Parties THIS AGREEMENT made between A, son of B, resident
  of..............hereinafter referred to as the owner of the ONE PART and C, son
  of D, resident of…………..hereinafter referred to as the contractors of the
  OTHER PART.
Recitals  
  WHEREAS
Owner desire  
to have labour (1) The owner is getting the construction of building on the land bearing Plot
for No…………Survey No …………….Hissa No …………….situate, lying and
construction of
being in
building Village…………….Tehsil…………….District…………….hereinafter
  referred to as the 'said work' and is desirous of availing of labour for the said
Agreement for
work.
appointment of  
contractor for
(2) The contractors are the contractor for the supply of all types of labour
supply of required for the construction work and offered their services to the owner,
labour which the owner has agreed on the terms and conditions hereafter set forth.
   
Testatum  
  NOW IT IS MUTUALLY AGREED BETWEEN THE PARTIES AS
Agreement to UNDER:
supply labour
 
by contractor
(1) The contractors will supply all labour viz. masons, labourers, water carriers
  and other necessary workers required for the said work to the owner at site
Payment of provided that the requisition thereof is made hours in advance.
labour charges
 
  (2) The labour shall be paid at the prevailing market rate. The present
  prevailing market rate of labour of all type has been given in the Schedule
Payment of hereunder written. The said rates may be changed by the mutual consent of the
commission to
parties.
contractor  
  (3) The contractors will be entitled to a commission of…………….on the total
Contractor's
disbursement made to the labour so supplied by them. The said commission
covenant toshall be payable to the contractors every week.
make good loss
 
caused to (4) The contractors will be liable for and make good any loss or damage,
owner caused by any act or default on the part of the labour supplied by them.
   
Contractor to
 
pay liquidated
 
damages for 
failure of (5) If the contractors fail to supply necessary labour on a requisition made by
supply of the owner in time, they will be liable to pay a sum of Rs …………….as
labour liquidated damages per labourer, mason, water carrier or any other worker not
  supplied by them in accordance with the requisition by the owner.
Testimoniurn
 
   
  IN WITNESS WHEREOF the parties hereto have set their respective hands to
Execution these presents on the date, month and year hereinabove written.
   
WITNESSES Signed and delivered by the within named owner A
1.
2. Signed and delivered by the within named contractors C
7.AGREEMENT BETWEEN AN OWNER AND AN ARCHITECT FOR
CONSTRUCTION OF A BUILDING
Parties THIS AGREEMENT made at…………….on this…………….day
  of…………….20 ………and …………….between A X, son of Shri X Y
  residing at (hereinafter called "the Employer" which expression, unless it be
  repugnant to the context or meaning thereof be deemed to mean and include
  his heirs, administrators, executors, legal representatives, successors and
  assigns) of the ONE PART and Shri…………….carrying on business in the
  partnership name and style of Messrs ......... , having their place of
  work…………….at…………….(hereinafter called "the architects" which
  expression shall unless it be repugnant to the context or meaning thereof be
  deemed to mean and include every partner for the time being of the said firm,
  the survivor or survivors of the legal representatives, administrators and
Employer assigns of the last survivor) of the
offered to OTHER PART.
appoint  
architect, WHEREAS the employer is desirous of constructing a building for his
which has been residence at…………….and WHEREAS the employer is desirous of
accepted by appointing the architects as architects for the said building (hereinafter
him referred to as the "said works") and WHEREAS the architects
  have………….accepted the said appointment on the terms and conditions
Agreement for hereinafter contained.
appointment of  
architect  
   
Architects  
  Now, therefore, it is hereby agreed by and between the parties hereto as
Scope of work follows
   
   
   
  (1) The employer appoints Messrs…………….Architects, as architects for the
  said works.
   
  (2) The architects shall render the following services in connection with and in
  regard to the said works:
  (a) Preparation of sketch designs (including carrying out necessary
  revisions till the sketch designs are finally approved by the employer),
  making approximate estimates to enable the employer to take a decision
  on the sketch designs;
  (b) Submission of the site plans and other drawings to the municipal
  corporation……………. and obtaining its approval;
  (c) Preparation of architectural working, drawings, making structural
  calculations and preparing all structural, mechanical, sanitary,
  plumbing, drainage, electrical drawings, specifications, detailed estimates of
  cost or such other particulars as may be necessary for the preparation of
  bills of quantities;
  (d) Preparation of landscapes and planting drawings;
  (e) Preparation of six copies of the contract documents including all
  drawings, specifications, bill of quantities, or other particulars and such
  further details and drawings, as are necessary for the proper execution of
  the works;
  (f) Supervision and inspection of the said works by the general
  contractor, sub-contractor, consultant, etc. that may be engaged from
  time to time by visiting the site periodically;
  (g) To check measurements of works at site, checking contractor's bills,
Submission issuing periodical certificates for payment and passing and certifying
of plans, etc accounts, so as to enable the employer to make payments to the contractors
  and making adjustment of all accounts between the contractors and the
Architect's employer;
covenant (h) Submission of detailed account of the steel, cement and any such other
to give service material as the employer may specify, and certify the quantities utilised in the
with reason works;
able skill, care (i) Obtaining of building completion certificate and securing permission
and diligence of Municipal Corporation or other authority for the occupation of the
  building and obtaining refund of deposits, if any, made by the
Construction employer to the Municipal Corporation or other authority;
cost (j) Any other service connected with the said works usually and normally
  rendered by architects and not referred to in any of the items referred to
  above.
   
  (3) The architects shall submit to the employer the sketch plans, tender
  documents, etc. within the period stipulated in the Schedule hereto annexed.
Deviation  
alteration of, (4) The architects shall exercise all reasonable skill, care and diligence in the
drawings discharge of duties hereby covenanted to be performed by them and shall
  exercise such general superintendence and
Supply of inspection in regard to the said works as may be necessary to ensure that the
copies of work is being executed in accordance with the working drawings and
drawings to specifications aforesaid and that the work is free from defects and deficiencies.
employer The architects shall be fully responsible for the structural soundness of the
  works.
Tests to be  
conducted (5) The construction cost shall not exceed Rs …………….per square metre
before com- and should conform to the norms of…………….The construction cost shall
mencement of not include
work (a) cost of land;
  (b) architects fees;
Programme of (c) any services relating to fitting or fixtures not designed by the
work architects-, and
  (d) soil testing fees.
   
Employment of (6) The architects shall not make any deviation, alteration, addition or
electrical and omission from the approved drawings without the prior written consent of the
other employer.
consultants  
   
Termination of (7) The architects shall on the completion of the work supply to the employer
agreement at their expenses two copies of one-eighth scale drawings (one of which shall
  be in tracing cloth); two complete sets of structural drawings and two sets of
  drawings sufficient to show the main lines of drainage, electrical installation
  and other essential services.
   
  (8) The architects shall arrange for taking trial bores, test pits, or other
  preliminary tests required to be carried out before the commencement of the
  said works and submit their report to the employer. The cost of carrying out
  such tests shall be borne by the employer.
   
   
Assignment  
or sub-letting (9) The architects shall prepare a comprehensive programme of work in
of rights consultation with the contractors, and arrange to have the work completed in
  an expeditious manner and in accordance with the programme drawn up.
Payment of  
remuneration (10) The architects shall, at their own expenses engage a qualified (i)Electrical
  Engineer; and
  (ii)Sanitary, Drainage and Water Supply Consultant with the
  qualifications and experience approved by the employer to assist them in their
Stages of work.
payment of  
remuneration  
  (11) This agreement may be terminated at any time by either party by giving a
  written notice of two months to the other party. Even after the termination of
  their employment, the architects shall remain liable and be responsible for due
  certification/approval of any bills submitted by the contractors at any time, in
  respect of the work, executed before the termination of the architect's
  appointment; but shall not be entitled to additional remuneration therefor. If
  the architects shall close their business or die or become incapacitated from
  acting as such architects, then the Agreement shall stand terminated. If the
  architects fail to adhere to the time Schedule stipulated in the Schedule hereto
  annexed or the extended time which may be granted by the employer in its
  sole discretion, or in case there is any change in the constitution of the firm of
  the architects for any reason whatsoever, the employer shall be entitled to
  terminate this agreement and entrust the work to some other architect.
   
Liquidated (12) The employer or the architects shall not assign, sublet or transfer their
Damages interest in this agreement without the written consent of the other.
   
   
  (13) The employer shall pay to the architects as remuneration for the services
Employer's to be rendered by the architects in relation to the said works, and in particular
power to for the services hereinbefore mentioned, a fee calculated at the rate of 3% on
exclude part of the value of the works as estimated (including the authorised extra) or the
project value of the works actually executed and completed whichever is less.
   
Settlement of (14) The employer shall pay fees to the architects in stages as follows :
disputes by (a) 10% of the total fees, payable after completion and approval of the site
arbitration plans by the employer;
  (b) 30% of the total fees less any amounts paid under clause (a)
  above], payable after completion of all drawings and the approval
  of site plan by the Municipal Corporation or other authorities;
  (c) 10% on completion of detailed estimates, submission or
  recommendations on the contractor's rate to the employer, and
  execution of the contract documents for the various trades. The
  employer may make part payments in proportion to the services completed in
  respect of particular trades;
  (d) Out of the remaining 50% of the total fees, 30% of the total fees shall
  be paid by instalments as the building work proceeds, and in proportion
  to the value of the said works as certified from time to time and balance
  10% after final completion of the building and closing of accounts;
  (e) In case this agreement is terminated earlier, fees shall be paid to the
Agreement in architects for the actual services rendered as per stages referred to in
duplicate this clause.
   
Testimonium (15) If the architects fail to observe the time schedule, they shall be liable to
  pay to the employer liquidated damages at the rate of Rs..........per day till the
work remains incomplete. The employer shall be entitled to recover the said
Execution liquidated damages from any sum payable to the architects under this
agreement.
 
(16) Notwithstanding anything contained hereinabove, it shall always be open
to the employer to exclude from the scope of the services to be rendered by the
architects under these presents the supervision and execution part of the
project and reduce the scale of fees, in which case the terms, conditions, scale
of fees, etc. shall be as detailed in the Annexure hereto.
 
(17) If any dispute, difference or question shall at any time arise between the
parties as to the interpretation of this agreement or arising out of this
agreement or as to the rights, liabilities and duties of the parties hereunder, or
as to the execution of the said works, the same shall be referred to the
arbitration and final decision of an arbitrator to be agreed upon and appointed
by both the parties or in case of disagreement as to the appointment of a single
arbitrator, to the appointment of two arbitrators one to be appointed by each
party, which arbitrators shall appoint third arbitrator who shall act as the
Presiding Arbitrator whose decision in the matter shall be binding on both the
parties. This submission to arbitration shall be deemed to be a submission to
arbitration within the meaning of Arbitration and Conciliation Act, 1996 or
any statutory modification thereof. The award of the arbitrator or arbitrators,
as the case may be, shall be final and binding on the parties. The parties agree
that if work under this agreement has not been completed at the time of
reference of dispute to arbitration, the work shall continue during the
arbitration proceedings and the employer shall make the payment to the
architects within the provisions of this agreement and shall not withhold any
money payable to the architects on account of arbitration proceedings unless
authorised by the arbitrators.
 
(18) This agreement shall be executed in duplicate and the architects shall bear
the stamp duty on the original. The employer shall retain the original
and the architects shall retain the duplicate.
 
IN WITNESS WHEREOF the parties hereto have subscribed their respective
hands hereto and on a duplicate hereof on the day and year hereinabove first
mentioned.
 
WITNESSES Signed and delivered by the within named employer AX
Signed and delivered by the within named architects
2. by its Managing Partner
Schedule

Period
 
1. Submission of site plan Within………days from the date of
the execution of this agreement.
 
2. Submission of the required plans Within………days from the date of
to the receipt
Municipal Corporation and other local
authorities of employer's
approval of the site plan.
 
3. Submission of detailed working Within………weeks from the date of
receipt of
drawings and estimates employer's approval of the site plans
.
4. Submission of architect's Within 2 weeks from the date of
receipt of the tenders
recommendations on the from the employer.
contractor's rates
 
5. Other drawings, etc., if any Within a reasonable time.