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AGREEMENT FOR CONSTRUCTION OF A BUILDING COMPLEX WITH RESIDENTIAL APARTMENTS

This Agreement for construction is entered into between :


Mr. aged about 37 years, slo .., both residing at ..

Hereinafter called the "DEVELOPER" of the one part AND M/s. .. , represented by Mr. ., having its office at Hereinafter called the "CONTRACTOR" of the other part. The expressions, "DEVELOPER" & "CONTRACTOR" herein shall mean and include their respective heirs, legal representatives, executors and successors. WHEREAS, the DEVELOPER being a promoter and builder has secured a clear and absolute right to develop the immovable properties detailed in the Schedule'A' here below, from .its Developer namely, Mr. , and under which the DEVELOPER is entitled to develop the said property on his own or by entrusting the construction work to the reputed contractors who have got required infrastructure, however, subject to the terms and conditions stipulated in the said Joint Development Agreement entered into between the aforesaid Developers and Developer. AND WHEREAS, in pursuance with the said understanding Developer has obtained a building License from BBMP of Bangalore. As per the Proposed Plan the DEVELOPER is planning to put up a building Complex consisting of a basement, Ground & three Upper floors with Basement for parking & ground for parking & residential apartments & remaining upper floors shall be residential Apartments. AND WHEREAS, DEVELOPER is desirous of constructing the proposed Building Complex to be known as .. ' through a Contractor and in that regard the DEVELOPER was on the look out of a experienced CONTRACTOR who is capable of under taking construction of the proposed building. The CONTRACTOR herein, who is a CONTRACTOR by profession and also engaged in undertaking construction of buildings in various part of Karnataka, having come to know the intention of the DEVELOPER has decided to undertake the said work and they have approached the DEVELOPER in this regard. After mutual discussions, the DEVELOPER has agreed to entrust the work of construction of the proposed

building complex namely, . to the CONTRACTOR herein subject to the following terms and conditions agreed to by both parties herein. NOW, THEREFORE, THIS AGREEMENT FOR CONSTRUCTION IS entered into and witnesseth as follows: 1) That, the DEVELOPER has entrusted the work of construction of the Apartment Building to be 'known as "', in the Schedule property to the CONTRACTOR and the CONTRACTOR has agreed to under take the said work as per the drawings and specifications prepared by the DEVELOPER. The CONTRACTOR will in consideration of the sums to be paid in the manner setout in the Annexure, execute and complete the works shown in the drawings and described in the specifications to the entire satisfaction of the DEVELOPER. The scope of work shall be Civil, Structural, Masonry and Plastering works only as per the items mentioned in the Schedule of Rates enclosed as Annexures -1. Any ancillary items if ordered and not found included in the Schedule of Rates shall be treated as non-tendered works. The Contractor shall execute and complete the works according to the drawings and specifications provided by the Architect reasonably well in advance of the construction schedule of each work enclosed as Annexure Any doubts regarding the drawings or specifications provided or the execution of work should be brought to the notice of the Architect/Developer and any clarifications or corrections should be received in proper drawings or in writing in the site instruction book which has to be maintained at the work site. The terms Architect shall mean M/s .. , represented by Mr. having office at , appointed by the DEVELOPER' as Architects and Project Consultants' to design and supervise the works and in the event the said ceasing to be the Architects, then such other firm, person sappointed by the Developer for the purpose.

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The CONTRACTOR hereby understands that 'TIME' is the essence of the contract and agrees to complete the works in all respects within eight months from the date of commencement of the work. The CONTRACTOR agrees that the Architect will determine the commencement and' final completion of dates. Nevertheless should such delays occur by various reasons beyond the control of the CONTRACTOR, the DEVELOPER shall grant extension of time to the CONTRACTOR as may have become necessary in consultation with the Architect. Rates:-The Schedule of Rates quoted shall include all-direct or contingent expenses such as charges for hire for any tools and plants, transport charges, temporary sheds for storing materials, etc., but excluding applicable taxes complete. VAT and Service Tax shall be paid extra as applicable. Labour Welfare Cess will be paid directly by the Contractor in respect of his staffs. The DEVELOPER shall make payments to CONTRACTOR within seven days from the date of submission of Bills by the CONTRACTOR, duly certified by the Architects. In the event of delay in making payment towards the Bills, the Contractor is entitled to stop the work till Bills are paid and such period of stoppage on account of non-payment of running Bills, shall be treated as time extension to an extent of such period. In the event of delay in completing the work schedule by the Contractor in spite of the payment made by the DEVELOPER, the price escalation on Cement and steel shall be borne by the Contractor. The contractor shall complete the work of the building within eight months subject to grace period of 30 days. If the contractor delays the work beyond the grace period, then the Contractor is liable to pay damages to the DEVELOPER at Rs. 1,000/-per day. That, the Retention money at the rate of 3% shall be deducted from each running bill of the CONTRACTOR, 2 % of the retention shall be released after actual completion of the work and the remaining 1% to be retained by the DEVELOPER, shall be released to the CONTRACTOR after the defects liability of 6 months of satisfactory completion of the entire work of the building as a whole. The DEVELOPER through the Architect reserves the rights of altering the drawings and of adding or omitting any item of work. If such alteration, addition causes additional cost, such cost including wastage, shall be borne by the DEVELOPER and it shall be included in the running bills.

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10) The DEVELOPER shall provide the connections of water for curing, and daily usage and electricity for the labour shed, Security lights, lighting for night shift works during the constructing period and the proportionate expenses in this regard are to be reimbursed. by the contract to the developer. In case the Contractors requires Electricity to make use of machines and tools for cutting steel or any other purposes, the DEVELOPER shall provide the same at the cost of the Contractor as per the reading of the Electric subMeter installed by the DEVELOPER.

11) The CONTRACTOR shall use the best quality materials as per the specifications for the construction and in the event, during the course of construction if the Architect/DEVELOPER does find any portion of the construction not to the quality of materials, workmanship specified in the attached specification, on his instructions the CONTRACTOR shall demolish the same at his own cost and the DEVELOPER shall not be liable to pay for the redone work. Even after redoing the work, if the work is not satisfactory, then the DEVELOPER and the Architect will have the right to cancel and take over the work. The Architect decision in regard to such technical matters, quality and quantity of work-shall be binding .on the parties. 12) The CONTRACTOR further agrees to abide by any supplementary specification and condition that may be issued by the Architect from time to time. 13) The Architect, DEVELOPER or any consultant to the building, will have the right to inspect the work at any time as to ensure the progress of work in accordance with the design and specification. 14) The rates in the schedule include all direct or contingent expenses such as all charges for hire for tools and plants, scaffolding and centering materials, transport charges, temporary sheds and shall be finished work in site except additional cost towards wastage arising on account of alteration, modification, changes. 15) The payment of the CONTRACTOR shall be made as per measured quantities and as per the rates provided in the schedule. The measured quantities will be checked, measured and certified by the Architect, at each stage. The payments are subject to deduction of TDS. 16) At the time of handing over the premises to the CONTRACTOR, the DEVELOPER shall make available one set of working drawings prepared by DEVELOPER. The CONTRACTOR shall before commencement of the work or any part of the structure, scrutinize the working drawings. In case of any discrepancy is found in the drawings, the matter shall immediately be brought to the notice of the Architect/ developer and his written instruction as to the drawings to be followed shall be obtained. In no case shall the CONTRACTOR assume the powers to decide such matters themselves. 17) The CONTRACTOR hereby agrees to devote his whole time to the construction work during the contract. Besides that, the CONTRACTOR also agrees to employ sufficient numbers of supervisors and foremen to assist the CONTRACTOR in the efficient execution of the day-to-day work.

18) The CONTRACTOR shall use cement, concrete mixtures of suitable capacity and vibrators as may be ordered by the consulting Architect of the DEVELOPER so as to produce as dense concrete as possible. 19) No concrete shall be poured into the formwork of roof slab and beams unless permission is obtained from the Architect on the site. 20) The CONTRACTOR agrees that he shall be responsible for the coordination of the works of the CONTRACTOR for any termite treatment, sanitary works, electrical works and any other sub-contract works and further agrees to work harmoniously and afford reasonable facility to each, as circumstances requires. In all matters of coordination, the Architect decision shall be final binding on all parties. 21) All materials to be used including their type and make shall be got approved by DEVELOPER, before using them for construction. 22) THAT, cement to be used for the construction of the proposed building shall be of good quality and to be stored in a covered shed and in all accountable position. 23) If the CONTRACTOR for any reason or under any circumstances whatsoever except for non-payment of running Bills, within 7 days of its submission, stops the construction at any stage before completion and does not resume within 10 days of notice in writing, from the DEVELOPER, then the DEVELOPER shall have the right to get the remaining works completed at the risk and cost of the CONTRACTOR without any prejudice to the right of the DEVELOPER to the claim of any losses or damages on account of delays in completion of the project, subject to prior settlement of the works already done by the CONTRACTOR. 24) The CONTRACTOR agrees that he shall not remove from the work site any or part of the materials supplied to him by the DEVELOPER as per the agreement. 25) That, in the event of seepage in the building, the contractor shall set it right at his cost and responsibility for a period of 6 months. 26) All skilled or unskilled labour employed by the CONTRACTOR shall' be experienced and of class required for the nature of work to be executed under the contract. They shall all be above 18 years of age. No child labour shall be employed. 27) The CONTRACTOR is liable to pay compensation for any claim arising out of accidents to his labour under the Workmen's Compensation Act and he agrees to completely indemnify the DEVELOPER against all such losses, if any such payments are payable to his Workmen under Act of Law of the State Govt. if the DEVELOPER makes any such payments, the same shall be recovered from the CONTRACTOR.

28) The CONTRACTOR shall take out an Insurance Policy under the Workmen's Compensation Act against any accidents/claims of their workers. 29) The CONTRACTOR shall abide by the labour laws of the State/ Central Govt. and shall provide all such facilities/ amenities/ monetary benefits to the labour, workers, staff members at his own cost as required under such laws and shall maintain all necessary records in accordance with the provisions of labour laws. Observance of laws relating to provident fund, Employee's state Insurance and payment of minimum wages, if applicable shall be the entire responsibility of the CONTRACTOR. The contractor has to produce the necessary supportive documents of payment of PF, ESI etc of their employees engaged in the present work along with the running bill. Also at the end of every financial year, the contractor shall also issue a certificate to Developer stating that the VAT, Service Tax and PF .. amount has been paid to the appropriate authorities in respect of the bills raised on the Developer. If the same is not produced the developer has got every right to with hold the payment until it is produced/submitted. 30) The CONTRACTOR shall remain responsible ' to the DEVELOPER financially and fully bear the loss and the consequence's as a result of any . theft or misuse of the DEVELOPER materials or other assets by any of his workmen. However, it is made clear that, CONTRACTOR is not liable for any such loss of property of the DEVELOPER, wherein that there is no role on the part of the Contractor or their workers. 31) The CONTRACTOR shall not transfer or sublet the work as a whole, to any other petty CONTRACTOR, without obtaining the Architect or DEVELOPER permission of approval in writing. 32) That, all cases of settlement of rates for extra items and deductions for items of work not done shall be decided by the Architect. The rates for which all such extract items of work not done shall be decided by the Architect. The rates for all such extra items of work would be based on the latest Karnataka PWD schedule. Incase rates for any items are not available in this schedule, the same would be worked on market rate duly enhanced by 10% towards CP(contractors profit) and OH(Over Heads). 33) In case if the CONTRACTORS work is found unsatisfactory or not up to the mark, his contract can be terminated after giving a notice of 20 days. No compensation shall be paid to him on any account and the balance incomplete portion of work shall be got completed by other agencies by the DEVELOPER subject to prior settlement of the cost of construction towards the work already completed by the CONTRACTOR and till such time the CONTRACTOR is entitled to be in possession of the schedule property and the improvements made therein. 34) The drawings agreement and specifications mentioned herein shall form the basis of this contract and the decision of the Architects in reference to all matters of disputes as to materials, and workmanship will be final and binding on both the parties.

35) The contract/work order is made with an understanding between the DEVELOPER and CONTRACTOR that in the event of any dispute or difference of opinion with regard to the interpretation, execution and meaning of any of the terms of this contract, it shall be settled between the DEVELOPER and the CONTRACTOR through arbitration only and all the provisions of Indian Arbitration and Conciliation Act shall apply for such arbitration. Incase the arbitration fails then only each party shall have a right to take course to legal action and it shall be subjected to Mangalore Courts only. 36) That both the parties shall strictly adhere to the terms and conditions of this Agreement for Construction and shall perform the agreements on their parts respectively. 37) The scope of work shall be Civil, Structural, Masonry and Plastering works only as per the items mentioned in the Schedule of Rates enclosed as Annexure -A. Any ancillary items if ordered and not found included in the Schedule of Rates shall be treated as non -tendered works. The Contractor shall execute and complete the works according to the drawings and specifications provided by the Architect reasonably well in advance of the construction schedule of each work enclosed as Annexure. 38) Defect Liability Period:-The DLP shall be for a period of 6 months. Final completion certificate shall be issued within 10 days after the expiration of the Defect Liability Period. 39) It shall be the sole responsibility of the Contractor to comply with statutory requirements such as Labour license, Obtaining Labour Contract License from Labour Office, Employees Provident Fund, ESI, Payment of Wages and Gratuity Acts, Minimum Wages Act, Workmen Compensation Act, Karnataka Shops and Commercial Establishments Act, and the Developer shall in no way be liable or responsible for claims, actions, payments, fines or otherwise under any such enactment's for the non compliance of the Contractor. The Contractor shall indemnify the Developer against all such claims, loss or damages whatsoever. The Contractor shall get registered with the Labour department as a Main Contractor of the Developer and file bi-annual returns with the Labour Dept and submit a copy of the same to the Developer. 40) Taxes:-Any changes / revision in statutory structure of taxes, both Central as well as State, resulting into increase of taxes and or introduction of new taxes during the project duration shall be paid extra to the Contractor by the Developer at actual. 41) The Contractor shall have 6 nos. of cube moulds at the construction site and he shall undertake at his / their own cost the Cube test for every concrete mix. Out of the 6 cubes prepared, 3 shall be tested for 7 days curing and the remaining 3 cubes shall be tested for 28 days curing and the test report shall be submitted for the approval of the Architect.

42) Safety:-The Contractor takes the full responsibility of safety at the construction site and will take all safety measures required. The Developer is in no way responsible for accidents that may occur at the site due to inadequate safety measures or the negligence of the workers employed by the Contractor. 43) The total agreed contract value including cost of materials and labour charges is Rs. ? / -and applicable taxes as mentioned in the bill of quantities statement dated ?. Payments will, be subject to deduction of TDS. 44) Mobilisation advance of Rs five lac has been paid by cheque Description of the Property Schedule All that piece and parcel of Residential property bearing vacant Site and all the rights, privileges and appurtenances thereto , and bounded on. East By West By North By South By : : : : Old Site No.4 Old Site No. 18 & 8 Road Road

And measuring East to West 87.5 + 90/2 feet and North to South 90-0feet , in all totally having an area of 7987.5sq.ft. IN WITNESS WHEREOF, the DEVELOPER and CONTRACTOR subscribe their agreement on this . day of . 2011 at Bangalore. DEVELOPER Witnesses : 1. CONTRACTOR

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