CONTRACT FOR BUILDING WORK

 

AN AGREEMENT made the ________ day of ______ 20_____.

BETWEEN

______________________________________ (insert the name, address etc. of employer) (hereinafter called the employer) of the One Part.

and

_________________________________________ [insert the name, address etc. of contractor] (hereinafter called the contractor) of the Other Part.

WHEREAS the employer is desirous of having (short description of work) in accordance with drawings (numbered ________) and a specification annexed hereto describing the work and all duly signed by the parties hereto and the contractor has agreed to execute the work shown upon the said drawings and described in the said specification for the sum of Rs. ________ (hereinafter called the contract price).

NOW IT IS AGREED as follows:

1. The contractor shall execute and complete in a good and workmanlike manner the work shown upon the said drawings and described in the said specification subject to such variations as may be authorised under clause 4 hereof (which work so varied is hereinafter called the work).
2. The employer agrees to pay the contractor the contract price or such other sum as shall become payable under the terms of this agreement at the times and in the manner hereinafter provided.
3. The contractor shall provide everything necessary for the proper execution of the work but shall not be bound to supply materials of a better quality than is reasonably procurable. The contractor shall conform to the regulations and bye-law of any local authority and or any public authority or company supplying water, gas or electricity, and shall give all notices required to be given to and pay all fees thereby legally demandable by any such authority or company but any fees for the payment of which express provision is not made in the said specification shall be added to the contract price.
4. The contractor shall if authorised by the employer vary the work by the addition omission or substitution of any work and no such variation shall vitiate this agreement. Such variations in default of agreement as to value which should wherever practicable be made before the variation is carried out shall be valued at a fair amount having regard to the circumstances in which the variation was authorised and carried out. The value of all such variations shall be added to or deducted from the contract price as the case may be.
5. The contract price having been calculated on the basis of costs ruling on the [date on which estimate prices are based] shall be adjusted by adding any additional costs incurred or deducting any costs saved by the contractor by reason of the following:
6. Any increase or decrease after the said date in the prices of the materials or commodities listed in Appendix A hereto. 
7. Any increase or decrease after that date in the wages payable to workmen employed on the site of the contractor or any sub-contractor. 
8. The imposition or withdrawal by any statute, order, regulation or direction, coming into operation after that date and having the force of law of any burden upon industry generally or upon the building industry which directly affects the costs of the work, not being an alteration in the prices of materials or commodities (whether listed in Appendix A or not). 
9. The words “prime cost” or “p.c.” in the said specification indicate that the amount to which they refer is the net amount proposed to be paid by the contractor for the supply and or fixing of the item concerned to a merchant or specialist together with such cash discount not exceeding five per cent as thee contractor shall obtain. Should the net amounts in fact payable by thee contractor in respect of prime cost items together with such cash discounts prove to be higher or lower than the prime cost or p.c. amounts then the difference shall be added to or deducted from the contractor price.
10. The contractor shall within one week from the completion of said works remove all his scaffolding plant and surplus materials from the premises when they are no longer required for the work under this agreement.
11. The contractor shall on being given notice thereof by the employer make good at his own cost any defects which exist at, or may appear within a period of three months, after the practical completion of the work if proved to arise from workmanship or materials not in accordance with this agreement. On the expiry of fourteen days after the end of that period the work shall be deemed to have been executed in accordance with this agreement save as respects defects failing to be made good under this clause of which previous notice shall have been given by the employer to the contractor.
12. The contractor shall insure the work and all materials delivered to the site for use in the work from the commencement of the work until the work is delivered up against damage by fire in an approved insurance office in the names of the employer and contractor for the full value of the work executed and materials delivered from time to time. If the work or any of the said materials are damaged by fire from whatever cause before the work is delivered up, then unless the parties otherwise agree the contractor shall complete the work in accordance with this agreement and the employer shall pay in addition to the sum otherwise payable hereunder and at the times and in the manner provided herein a fair price for reconstructing repairing or replacing the work or materials so damaged and the insurance monies shall be applied in paying such fair price.
13. The contractor shall indemnify the employer and take out insurance against:-
14. Any claim and costs in connection there within respect of any personal injury to any person employed upon the work by the contractor. 
15. Any claim and costs in connection therewith in respect of personal injury to any other person arising as a consequence of the negligence or breach of duty of the contractor his servants or agents. 

• Any damage to property of persons other than the employer or the contractor arising as a consequence of the negligence or breach of duty of the contractor or of circumstances within the contractor’s control. 

For the purpose of sub-paragraphs (i), (ii) and (iii) hereof the expression “contractor” shall include any sub-contractor of his.

11. The contractor shall be given possession of the site on the ______ day of ______ 20____. He shall forthwith commence the work and shall effect practical completion of the same by the ______ day _____ of _______ 20_____ unless prevented by accidents inclement weather strikes or lockouts affecting the building trade, additions or alterations or any causes beyond the contractor’s control in any of which cases the contractor shall be entitled to a reasonable extension of time for practical completion.
12. The contractor shall be entitled to payment on account by the employer from time to time of the percentages of the contract price adjusted or varied in accordance with this agreement at the stages following that is to say:

_______% 

_______%

_______%

_______%

_______%

_______%

damps course level?first floor plate level and joists fixed?roof plate level?building carcassed and roofed in?when plastering (substantially) completed?on practical completion of the work and the balance of three months after practical completion or when all defects under under clause 8 hereof have been remedied and made good by the contractor whichever date

13. If the employer commits an act of bankruptcy or being a company enters into liquidation (except a voluntary liquidation for the purpose of reconstruction) or if the employer does not pay the contractor any sum payable at the expiration of seven days from the date when the contractor shall have given written notice to the employer of the sum having become due, the contractor shall be at liberty to determine this agreement, by notice in writing to the employer and to recover from the employer the fair value of all work executed and the amount of any loss he may sustain in respect of any plant or materials supplied or purchased or work prepared or partially prepared for the purpose of this agreement and any other loss he may differ as a natural consequence of the determination.
14. If the contractor commits an act of bankruptcy or being a company enters into liquidation (except a voluntary liquidation for the purpose of reconstruction) or if the contractor is guilty of any breach or breaches of contract which go to the root of this agreement the employer may by written notice determine the employment of the contractor. If the employment of the contractor is so determined, the employer may use any scaffolding, plant or materials of the contractor upon the site for the purpose of and so long as may be reasonable necessary for completing the work and shall not be bound to pay any sum or further sum to the contractor until the time reasonably necessary for completing the work has elapsed. Upon the expiry of such time an account shall be taken in which the contractor shall be credited with the value calculated in accordance with this agreement so far as practicable of the work done by him and shall be debited with the amount of any interim payments made by the employer and with any loss or additional expense incurred by the employer as a natural consequence of the determination and the balance shall be paid to the party in whose favour it lies.
15. Should any dispute or difference arise between parties hereto touching and concerning this agreement then either party shall forthwith give to the other notice in writing of such dispute or difference and such dispute or difference shall be referred to the arbitration and final decision of a person to be appointed on the request of either party by the President for the time being of the Architects’ Association shall be binding upon the parties.

IN WITNESS WHEREOF the Parties have hereunto set their respective hands the day and year first above written.