Construction Contract Agreement

CONSTRUCTION CONTRACT AGREEMENT This AGREEMENT is made on [effective_date] between [owner_name], of [owner_address] (the "Owner"), and [contractor_name], of [contractor_address] (the "Contractor"). 1. SCOPE OF WORK The Contractor shall carry out and complete the following work at [site_address] (the "Works"): [scope_of_work] The Works shall be executed in accordance with the drawings, specifications and bill of quantities annexed to this Agreement, which form part of it. 2. CONTRACT VALUE 2.1 The Owner shall pay the Contractor Rs. [contract_value] for the Works. 2.2 The contract value is exclusive of Goods and Services Tax, payable additionally at the applicable rate against a valid tax invoice. 2.3 Tax shall be deducted at source at the applicable rate under the Income-tax Act, 1961. 3. PAYMENT SCHEDULE [payment_schedule] Each running payment shall be made within fifteen days of certification of the corresponding stage by the Owner or the Owner's architect. 4. TIME FOR COMPLETION 4.1 The Contractor shall commence on [start_date] and complete the Works within [completion_days] days. 4.2 Time is of the essence. If completion is delayed for reasons attributable to the Contractor, the Owner may levy liquidated damages at the rate agreed between the parties. 4.3 Extension of time may be granted for delay caused by force majeure, by variation ordered by the Owner, or by the Owner's own default. 5. MATERIALS AND WORKMANSHIP 5.1 All materials shall be new, of the specified grade, and conforming to the relevant Bureau of Indian Standards specification. 5.2 The Owner may reject any material or workmanship not conforming to the specification, and the Contractor shall replace or redo it at its own cost. 5.3 The Contractor shall permit the Owner and the Owner's architect to inspect the Works at all reasonable times. 6. VARIATIONS No variation to the scope shall be carried out except on the Owner's written instruction, recording the agreed cost and time implication. 7. STATUTORY COMPLIANCE AND LABOUR 7.1 The Contractor shall obtain all permissions and approvals required for the execution of the Works, other than those which are the Owner's responsibility as the landowner. 7.2 The Contractor is solely responsible for the wages, statutory dues, insurance and safety of its own workmen, and shall comply with the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and all other applicable labour legislation. 7.3 The Contractor shall indemnify the Owner against any claim arising from injury to, or a claim by, its workmen. 8. RETENTION AND DEFECT LIABILITY 8.1 The Owner shall retain [retention_percent]% of each payment as retention money. 8.2 The Contractor shall remain liable to rectify, at its own cost, any defect appearing within [defect_liability_months] months of completion. 8.3 Retention money shall be released on expiry of the defect liability period, subject to rectification of all notified defects. 9. TERMINATION The Owner may terminate for material breach not remedied within fifteen days of written notice, for abandonment of the Works, or on the Contractor's insolvency. On termination the Owner shall pay for work properly executed to that date. 10. GOVERNING LAW Governed by the laws of India, with disputes referred to arbitration by a sole arbitrator under the Arbitration and Conciliation Act, 1996. OWNER CONTRACTOR [owner_name] [contractor_name] WITNESSES 1. Name: ______________________ Signature: ______________ 2. Name: ______________________ Signature: ______________