Agreement Between Owner And Contractor India

If you do not pay according to the date stated in the contract, you may want to pay the fine. Similarly, the contractor is obliged to pay a penalty if it has not completed the project within the time limit. Although the cost of different types of raw materials increases, the contractor should respect the contract and deliver it according to the schedule. In case of delay of the contractor, the defects must be eliminated and eliminated within the period indicated by the architect/owner. Before handing over the building to the owner, the maintenance period should be indicated in the contract. In most cases, the duration of maintenance is from six months to one year. There should be no conflict in the payment method. The method of payment can be made by cash, check or electronic transfer of money, in accordance with the mutual agreement. The law of the land should be respected so that there are no problems. You can settle the payment at the end of the month. If you are not able to pay large bills immediately, you can negotiate with the contractor so that the payment of the invoice is made in instalments.

It is therefore necessary to clarify the frequency of payments and the volume of payments. 4. The owner pays the contracting authorities a sum of Rs………. whose owner pays the contracting authority each week the amount sufficient to cover the costs incurred by the contracting authorities in respect of the materials used in the works, which have been verified and certified by the architect, Rs…… on the architect`s attestation that the work is completed up to the first floor, the additional sum of Rs ………. on the architect`s attestation that the works are completed up to the second floor and that the balance must be paid on the architect`s certificate, that the above-mentioned works have been completed in all respects in accordance with the agreement and that the contracting authorities have removed and evacuated, at their own expense, all unused scaffolding, fences, materials and waste, and the bungalow for use and colonization and immediately the profession. However, an amount equal to 5% of the total amount of the contract to be paid by the owner under this contract is withheld by the owner as a withholding indemnity to be paid after a period of 12 months from the date of delivery of the bungalow fully and ready to be purchased. The contracting authorities accept and undertake to remedy all failures that may be found or noted during twelve months. Where the contracting authorities do not remedy these defects or do not remedy the defects mentioned by the owner within fifteen days from the date of notification to the contracting authorities, the owner shall have the right to have the defects repaired by other entities which he deems appropriate at the expense and risk of the contracting authorities and to use the retention allowance; To the extent that the retention allowance is not sufficient to cover these costs, expenses and charges incurred by the owner to remedy the construction defects, the contracting authorities must remedy the failure within 7 days of the written request of the owner, failing which the contracting authorities will be required to pay them at the same time as the interest of 15% per year. 20.

In the event of a dispute or dispute between the owner and the contractor, the architect`s decision is binding on both parties. A construction contract is a legal document that binds both parties to the agreed terms….

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