Direct Contract to Build a House

Direct Contract to Build a House

This agreement is made the ………… day of …………… between AB, son of etc. (hereinafter called the owner) of the one part and CD, son of etc. (hereinafter called the contractor) of the other part.

Whereas the owner desires to have certain works as shown and indicated in the Specification/Schedule/Drawings/Plans/Designs/Rates and Acceptance of Tender executed each of which documents has been kept signed in duplicate by or on behalf of the parties hereto for the purpose of identification and shall be treated as part or parts of this agreement.

Now it is hereby agreed by and between the parties as follows:

1. For the consideration hereinafter mentioned the contractor shall, upon and subject to the conditions annexed hereto, execute and complete the works so shown and described.

2. The owner will pay the contractor a lump sum amount of Rs. ……….. (or such other sum as shall become due and payable hereunder) in accordance with the quotation, rates or acceptance of the tender at the time and in the manner specified in the conditions.

Conditions:

1. The said owner shall arrange for and supply the materials and the said contractor shall construct and build and completely finish for the owner with his own labour on the plot of land described in the plan or plans annexed hereto a three-storeyed house according to the specifications, elevations and sections indicated therein and according to the directions of the owner or his consulting or supervising engineer, if any, or his duly appointed agent, given from time to time without any deviation from or modification of the said plans, drawings, specifications, elevations or sections except with written consent from the owner first had and obtained otherwise such deviation and work will be considered as gratuitously done and if required by the owner the contractor shall at his own costs and expenses dismantle the same and complete the work according to the plans, drawings, specifications, elevations or sections.

2. The said contractor shall build and completely finish and make the said house habitable on or before the …………….. day of ………….. 2001 unless prevented by any labour strike, fire, accident, earthquake, mob violence, attack from the air or any other major disturbances and in default thereof, he shall remain liable for and pay to the owner damages at the rate of Rs. ……….. (in words Rupees …………) per day for such breach of the contract so long as the said house shall remain unfinished or inhabitable.

3. The said contractor shall build the said house under his direct personal supervision and in the best workmanlike manner and shall not, on any account whatsoever, employ a sub-contractor for the building or completing any portion thereof except with the written consent of the owner first had and obtained which the owner may in his absolute discretion withhold without assigning any reason.

4. The owner shall pay to the said contractor on the …….. day of ………….. each month against his running bills 90% of such sum as he claims or entitled to on the progress of the work and according to the approved rates mentioned in the Acceptance of Tender less 20 per cent thereof which will be adjusted at the time of settlement of his bills and final payment after completion of work and scrutiny of all the bills.

or

The owner shall pay to the contractor portions of the said sum of Rs. ………. on pro rata basis fortnightly/monthly less a sum of equivalent to 25% thereof which will all be adjusted at the time of final payment after completion of the work and scrutiny of all the bills.

5. All moneys which the said contractor shall be liable to pay to the owner on account of the breach of this contract or on any other account shall be deducted by the said owner from and set off against any money or moneys which may be due to the said contractor on account of the construction of the said house during the process or on completion.

6. Within ……………. months of the completion of the said house and adjustment of the account the owner shall pay to the contractor such balance amount as he may then be entitled to according to the terms of this contract upon scrutiny of all his bills.

7. In case the owner shall desire for any deviation from the said plans and specifications, designs or any more or other building or buildings or any additional work or works to be done or executed, the contractor shall duly execute such deviations or extra or additional work in a proper, substantial and workmanlike manner, in all respects according to such altered plans and specifications and within the time prescribed or any extension thereof as may be mutually agreed and to the satisfaction of the owner. The additional costs of such deviations, alterations and additions, if any, shall be estimated and paid in the manner provided by clause 4 hereof.

8. The contractor shall remain liable to and shall indemnify the owner in respect of all causes of action, claims, damages, compensation or costs, charges and expenses arising out of any accident or injury, sustained by the owner or any member of his family or guest or by any workman or other person, whether in the employment of the contractor or not while in or upon the said works or the site of the same arising out of any act, default or negligence, error in judgment on his part or on the part of his servants and agents.

9. The owner shall be entitled to determine this agreement and discharge the contract, without prejudice to other rights and remedies available to him, if the contractor shall become insolvent or fails and/or neglects to carry out instructions on his behalf or to complete the work or suspend the same or delay the progress thereof without reasonable cause or suffers or allows any execution or attachment levied on the properties at the site or refuses or persistently neglects to make good the defective work, if any, or if without the written consent of the owner, he shall assign or sublet this contract.

10. In case of termination of this agreement and/or discharge of the contractor as hereinbefore stipulated, the owner shall be entitled to appoint a new contractor or contractors to continue and complete the said dwelling house and buildings, or any additions to building or buildings and works, if any, according to the said plans and specifications or any deviations therefrom and authorise him to use any plants, materials and property of the contractor left upon the site and the contractor shall in such case lose and forfeit all his rights whatsoever under this contract except his claim for moneys unpaid on settlement of account between the parties and scrutiny of all his bills.

11. In case any dispute or difference shall arise between the parties during the progress of or after construction or abandonment of the work as to the meaning or construction of this contract or touching or relating either to the said buildings or works, or to any other matter or thing arising directly or indirectly under this contract, then and in such an event the same shall be referred to arbitration and the final decision of a single arbitrator to be mutually agreed between the parties who alone shall consider and determine the same and whose certificate or award shall be binding and conclusive upon both the said parties, otherwise to two arbitrators, one to be appointed by each party who will appoint an umpire at the commencement of the proceedings and this clause shall be deemed a submission within the meaning of the Arbitration and Conciliation Act 1996 or statutory modification or re-enactment thereof.

In witness whereof, the said owner and contractor have hereto respectively signed on the day, month and year first above-written.

Signed, sealed and delivered by AB                                                             AB

and CD in the presence of …………                                                             CD

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