AGREEMENT FOR CONSTRUCTION OF HOUSE WHERE BUILDER SUPPLIES MATERIALS

 

AN AGREEMENT made the ______ day of ______.

BETWEEN

_________________________________ (insert the name, address etc. of owner) (hereinafter called the owner) of the one part

and

________________________________ (insert the name, address etc. of builder) (hereinafter called the builder) of the Other Part.

WHEREAS:

1. The owner is desirous of building _______ dwelling houses on certain land situated at ________ and has caused drawings and a specification setting forth the work to be done to be prepared by [architect].
2. The builder has agreed to execute and carry out the said works in accordance with the said drawings and specifications for the lump sum of Rs. __________.

NOW IT IS HEREBY AGREED as follows:

1. The builder for the consideration hereinafter mentioned shall at his own proper costs and charges forthwith erect and build in a substantial and workmanlike manner upon the land of the owner coloured red on the plan hereto annexed and marked No.1 _______ dwelling-houses with outhouses according to the several plans elevations and specification signed by both parties and hereto annexed and subject to the directions [and approval] of the said [architect] or other the architect for the time being employed by the owner for supervising and certifying the said work (hereinafter called the architect.)
2. The plans detail drawings and specification shall be and remain the property of the owner but during the progress of the work the same shall be in the custody of the architect who shall delivery them to the owner when the contract shall have been performed. Should there be any discrepancy between the plans detail drawings and specification the specification shall prevail and be deemed to be correct and binding notwithstanding the drawings.
3. The owner shall give to the builder vacant possession of the site on or before the ______ day of _______ and the builder shall complete the said dwelling- houses with outhouses so as to be fit for occupation and remove all surplus material plant and rubbish from the site on or before the ________ day of _________.
4. The builder shall provide all materials and all scaffolding plant tools and tackle necessary for the purpose of completing the said dwelling houses and outbuildings. All such materials shall be the best of their respective kinds and shall be approved by the architect. If any materials shall be brought on to the site which shall not be approved by the architect [then notwithstanding that a certificate may have been previously given by the architect in which the said materials shall have been included] the builder shall at his own expense remove them and in lieu thereof provide such materials as the architect may approve.
5. The builder shall forthwith take down and rebuild any work or part of the buildings which is not to the satisfaction of the architect and any certificate given by the architect under clause II hereof shall not discharge the builder from liability under this clause.
6. All plant and materials brought on to the site by the builder shall be deemed to be the property of the owner who shall be under no liability for loss thereof or damage thereto arising from any cause whatsoever.
7. The builder shall conform to the provisions of every Act of Parliament statutory instrument bye-law or regulation for the time being in force affecting the said building and will give all necessary notices and obtain every requisite sanction in respect of the said works under every such statute instrument bye- law or regulation and will keep the owner indemnified against all fines penalties and loss incurred by reason of any breach of any such statute, instrument, bye- law or regulation.
8. The builder shall not without the written consent of the architect assign or sublet this contract or any part thereof nor shall he without the like consent make any sub-contract with any person or persons for the execution of any portion of the works.
9. If the owner shall require any deviation from the said plans drawings and specification or any additional or other work to be done the builder will carry out the work according to such requirement and do the additional or other work in a substantial and workmanlike manner within the time prescribed by and to the satisfaction of the architect who shall estimate the value of the same [according to the prices contained in the tender and if such work is not priced therein] at the fair value thereof and the owner shall on the final completion of the said buildings pay to the builder the amount of such valuation. If the owner shall not require part of the work contained in the specification to be done the builder will make such deduction from the price mentioned in clause II hereof as the architect shall certify in writing to be fair and reasonable.
10. In any of the following cases namely where delay is caused by (i) strike or lock-out of workmen (ii) accident to the works for which the builder is not responsible (iii) bad weather (iv) extras or variations as in clause 9 hereof mentioned [(v) force majeure]] or other reasonable cause the architect shall grant such extension of time for the completion of the works as shall appear to him to be reasonable [and shall grant such an extension even though the date specified in clause 3 hereof has passed or the works have in fact been completed if in the circumstances of the case it shall appear reasonable to him to do so].
11. The said sum of Rs. __________ shall be paid by the owner to the builder in manner following that is to say (i) as to Rs. ________ part thereof as soon as the architect shall certify in writing that the said buildings have been duly carried up to the first floor joists (ii) as to Rs. __________ further part thereof as soon as the architect shall so certify that the said buildings are roofed in and covered and (iii) as to the residue thereof [or Rs. ________ further part thereof] as soon as the architect shall so certify that the said buildings have been completed in all respects according to the said plans detail drawings and specification. [As to Rs. ________ being the residue of the said sum of Rs. ________ the same shall be retained by the owner for [one] year after the date of the last mentioned certificate of the architect and shall be applied in making good any cracks sinking or settlement or any other defect in the said buildings which shall become apparent in the course of such year and shall in the opinion of the architect be due to defective work or materials and subject thereto the said residue shall be paid to the builder at the expiration of such year].
12. If the builder shall become bankrupt or enter into any arrangement with or for the benefit of his creditors or become unable or refuse or neglect to carry out the work the owner [or the architect] by notice in writing sent to the builder by registered post or by recorded delivery service or left on the site of the said buildings may determine this contract. Upon the service of such notice all claims of the builder under this contract shall cease.
13. Should the builder fail in the due performance of the works or any part thereof or to proceed with the same to the satisfaction of the architect the owner may by notice in writing under the hand of the architect determine the contract so far as regards the performance or completion of the same by the builder but without thereby affecting in other respects the obligations and liabilities of the builder. On such determination of the contract as aforesaid the further use by the contractor of the plant implements and materials then upon the ground shall cease and the owner may employ other contractors or workmen either by contract by measure and value or by day work to perform and complete the works or himself complete and perform the same and the cost charges and expenses of such completion shall be paid to the owner by the builder or may be deducted by the owner from any money due or to become due to the builder and the certificate of the architect shall be final and binding with respect to the sum or sums or balance of money to be paid by or to the builder.
14. The builder shall at all times during the progress of the work keep the buildings in the course of erection insured in the joint names of the owner and the builder in the full value thereof from loss or damage by fire and shall when so requested produce to the owner all policies and receipts for premiums.
15. The builder shall indemnify the owner against any liability loss claim or proceedings whatsoever whether arising by any law or by statute in respect or personal injury to or the death of any person whomsoever arising out of or in the course of or caused by the execution of the work unless due to any act or default of the owner or for any person for whom the owner is responsible under this contract and against all actions claims and demands whatsoever to any third person arising out of or occasioned by the negligent imperfect or improper performance of this contract by the builder his workmen servants or agents.
16. Until this contract shall be completed the builder shall be and remain responsible in every respect for and shall replace and make good all loss injury or damage to the works or site to other land, buildings or other property of the owner or to the owners or occupiers of any land or buildings adjoining which may be caused or done by him or his workmen and shall indemnify the owner against the same and all claims in respect thereof.
17. If in excavating for the foundations of the buildings to be erected in accordance with this contract the builder shall either (i) encounter a bed of wet or shifting sand which was not shown or indicated in the plans drawings or specification upon which in the opinion of the architect it would be dangerous to erect the said buildings without extending the foundations or sinking piles and/ or (ii) encounter running water which shall require to be continuously pumped then and in every such case the reasonable cost of extending the foundations and/or sinking piles and/or pumping shall be allowed by the architect as an extra and shall be added to the contract sum.
18. In case any dispute or difference shall arise between the parties hereto touching or relating either to the said buildings or works or to any other matter or thing arising under this contract the same shall be referred to.. or failing him to an architect to be nominated on the request of either party by the President for the time being of the Institute of Civil Engineers whose award shall be final and binding upon both the said parties. Such reference shall be deemed to be an arbitration pursuant to the Arbitration Act 1940 and/or any statutory modification or re-enactment thereof for the time being in force. IN

WITNESS etc.

[Signatures and seals of both parties]