House Construction Agreement Format In Kerala
This agreement allows the parties to write down the exact nature and details of the work to be carried out, as well as the responsibilities of each party throughout the construction. The terms of payment for the project are also mentioned. In general, there are three different types of price agreements: AND WHEREAS the second part is a large contractor and has great experience in building large buildings and has agreed to build the house on the land in question. 3. If the owners do not complete this work within the time frame set out in the above provision, the owners pay on the owner`s choice, but without prejudice to the other legal rights of the owner and other provisions of the owner, damages liquidated to the tune of Rs………. per day (but subject to a ceiling of 2% of the total amount of the contract payable by the owner under this agreement) for the period between the specified period for completion of the work. The owners expressly agree and authorize the owner to deduct, if necessary, from such liquidated damages from a staggered payment due and to pay to the owners within the meaning of this agreement. Cost or cost-plus: In a cost-plus contract, the owner reimburses the contractor for all costs incurred during construction, such as equipment and work. The owner also pays an agreed profit margin, usually a flat fee or a percentage of the total cost. Risk factors should be included in the contract to protect the interests of the owner. If you do not read the written agreement, you will not be in a defensive position. The supply of products and services is mentioned in the contract between the owner and the contractor.
NOTE: This is just a draft contract in which we have considered a model project to analyze the costs and terms of payment. Information on the type of materials used for construction should be included in the agreement. For some types of construction projects, you may need administrative approvals in addition to the work contract before contractors can start working. If you want to start work immediately, you can accept an interim agreement. You should mention in the agreement that the interim contract is in effect until a permanent contract is signed between the owner and the contractor.