Agreement With Contractor For Construction Of Building
December 2, 2020
A construction contract must be made before the actual construction work can be carried out, as it mentions the extent of the work to be done by the contractor and the levels of payment that must be released by the owner. 4. The owner pays the builders a sum of Rs…………. whose owner pays each week to the owners the amount that can be sufficient to cover the costs incurred by the owners for the materials used in the works, verified and certified by the architect, Rs…… on the architect`s certificate that the work is completed up to the first floor, the additional sum of Rs ………… on the architect`s certification that the work is completed and that the balance must be paid on the architect`s certificate, that the above works have been completed in all respects in accordance with the agreement and that the owners have, at their own expense, removed all scaffolding, fencing, materials and unused waste from the premises and managed the bungalow for immediate use and use and management. However, an amount equal to 5% of the total amount of the contract payable by the owner under this contract is withheld by the owner as a deduction allowance which, after a period of 12 months from the date of delivery of that bungalow, is fully due and is due for occupancy. The owners agree and undertake to remedy any defects that can be found or found during the 12-month period. If the owners do not correct the defects found or refuse to correct the defects found by the owner within a fortnight of the date of notification to the owners, the owner has the right to have these defects corrected by other agencies that he deems appropriate for all the costs and risk of the owners and to use the deduction allowance; To the extent that, in the event of insufficient deduction pay in question, the costs, costs and expenses incurred by the owner to remedy the construction defects are not sufficient, the owners must correct the defect within 7 days of the owner`s written request, otherwise the owners are required to pay the same amount as the interest of 15% per year. Many people regret the importance of a well-documented agreement between the owner and the contractor, which is beneficial to both the parties, including the owner and the developer. Below we discussed the points that we should consider in the mutual agreement. After hiring your architects, the NEXT step is very critical and important to ensure that the project proceeds without delay or conflict with contractors.
NOTE: This is just a draft contract in which we have considered a model project to analyze the costs and terms of payment.