Agreement between Builder and an Architect

THIS AGREEMENT is made and enter into act at ……….......... on this …......... day of........ 20……. between Shri……………………… an adult R/o at ………………........... (hereinafter called "the Builder" which expression, unless it be repugnant to the context or meaning thereof be deemed to mean and include his heirs, administrators, executors, legal representatives, successors and assigns) of the ONE PART and Shri...........  ......... carrying on business in the partnership name and style of M/s ………..............., having their place of work at ........................ (hereinafter called "the architects" which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include every partner for the time being of the said firm, the survivor or survivors of the legal representatives, administrators and assigns of the last survivor) of the OTHER PART. 

WHEREAS the Builder is desirous of constructing a building for his residence at ........……….

AND WHEREAS the Builder is desirous of appointing the architects as architects for the said building (hereinafter referred to as the "said construction") and WHEREAS the architects have accepted the said appointment on the terms and conditions hereinafter contained.                                 

Now, therefore, it is hereby agreed by and between the parties hereto as follows:-
 
1. The Builder appoints M/s………………............. Architects, as architects for the said construction. 

2. The architects shall render the following services in connection with and in regard to the said construction:-                                                 

(a)  Preparation of sketch designs (including carrying out necessary revisions till the sketch designs are finally approved by the Builder), making approximate estimates to enable the Builder to take a decision on the sketch designs; 

(b)  Submission of the site plans and other drawings to the municipal corporation  ........... and obtaining its approval; 

(c) Preparation of architectural working drawings, making structural calculations and preparing all structural, mechanical, sanitary, plumbing, drainage, electrical drawings, specifications, detailed estimates of cost or such other particulars as may be necessary for the preparation of bills of quantities; 

(d)  Preparation of landscapes and planting drawings; 

(e) Preparation of six copies of the contract documents including all drawings, specifications, bill of quantities, or other particulars and such further details and drawings, as are necessary for the proper execution of the works; 

(f) Supervision and inspection of the said construction by the general contractor, sub-contractor, consultant, etc. that may be engaged from time to time by visiting the site periodically; 

(g) To check measurements of works at site, checking contractor's bills, issuing periodical certificates for payment and passing and certifying accounts, so as to enable the Builder to make payments to the contractors and making adjustment of all accounts between the contractors and the Builder; 

(h) Submission of detailed account of the steel, cement and any such other material as the Builder may specify, and certify the quantities utilised in the works; 

(i) Obtaining of building completion certificate and securing permission of  Municipal Corporation or other authority for the occupation of the building and obtaining refund of deposits, if any, made by the Builder to the Municipal Corporation or other authority; 

3. The architects shall exercise all reasonable skill, care and diligence in the discharge of duties hereby covenanted to be performed by them and shall exercise such general superintendence and inspection in regard to the said construction as may be necessary to ensure that the work is being executed in accordance with the working drawings and specifications aforesaid and that the work is free from defects and deficiencies. The architects shall be fully responsible for the structural soundness of the works.

4. The construction cost shall not exceed Rs. ........... per square meter and should conform to the norms of ......... The construction cost shall not include:- 

(a) cost of land;
(b) architects fees; 
(c) any services relating to fitting or fixtures not designed by the architects; and 

5. The architects shall not make any deviation, alteration, addition or omission from the approved drawings without the prior written consent of the Builder. 

6. The architects shall on the completion of the work supply to the Builder at their expenses two copies of one-eighth scale drawings (one of which shall be in tracing cloth); two complete sets of structural drawings and two sets of drawings sufficient to show the main lines of drainage, electrical installation and other essential services. 

7. The architects shall arrange for taking trial bores, test pits, or other preliminary tests required to be carried out before the commencement of the said construction and submit their report to the Builder. The cost of carrying out such tests shall be borne by the Builder. 

8. The architects shall prepare a comprehensive program of work in consultation with the contractors, and arrange to have the work completed in an expeditious manner and in accordance with the program drawn up. 

9. Either party may terminate this agreement at any time by giving a written notice of two months to the other party. Even after the termination of their employment, the architects shall remain liable and be responsible for due certification/approval of any bills submitted by the contractors at any time, in respect of the work, executed before the termination of the architect's appointment; but shall not be entitled to additional remuneration therefore. 

10. If the architects shall close their business or die or become incapacitated from acting as such architects, then the Agreement shall stand terminated. If the architects fail to adhere to the time Schedule stipulated in the Schedule hereto annexed or the extended time which may be granted by the Builder in its sole discretion, or in case there is any change in the constitution of the firm of the architects for any reason whatsoever, the Builder shall be entitled to terminate this agreement and entrust the work to some other architect.

11. The Builder or the architects shall not assign, sublet or transfer their interest in this agreement without the written consent of the other. 

12. The Builder shall pay to the architects as remuneration for the services to be rendered by the architects in relation to the said construction, and in particular for the services hereinbefore mentioned, a fee calculated at the rate of 3% on the value of the works as estimated (including the authorised extra) or the value of the works actually executed and completed whichever is less. 

13. The Builder shall pay fees to the architects in stages as follows:- 

(a) 20% of the total fees, payable after completion and approval of the site plans by the Builder; 

(b) 25% of the total fees  payable after completion of all drawings and the approval of site plan by the Municipal Corporation or other authorities; 

(c) 25% on completion of detailed estimates, submission or recommendations on the contractor's rate to the Builder, and execution of the contract documents for the various trades. The Builder may make part payments in proportion to the services completed in respect of particular trades; 

(d) Out of the remaining 30% of the total fees, final completion of the building and closing of accounts; 

14. If the architects fail to observe the time schedule, they shall be liable to pay to the Builder-liquidated damages at the rate of Rs…........... per day till the work remains incomplete. The Builder shall be entitled to recover the said liquidated damages from any sum payable to the architects under this agreement. 

15.  If any dispute, difference or question shall at any time arise between the parties as to the interpretation of this agreement or arising out of this agreement or as to the rights, liabilities and duties of the parties hereunder, or as to the execution of the said construction, the same shall be referred to the arbitration and final decision of an arbitrator to be agreed upon and appointed by both the parties or in case of disagreement as to the appointment of a single arbitrator, to the appointment of two arbitrators one to be appointed by each party, which arbitrators shall, before taking upon themselves the burden of reference, appoint an umpire whose decision in the matter shall be binding on both the parties. It is hereby provided that the arbitrator so appointed shall make his award within six months from the date of the arbitrator or arbitrators, as the case may be, entering on the reference. This submission to arbitration shall be deemed to be a submission to arbitration within the meaning of Arbitration and Conciliation Act, 1996 or any statutory modification thereof. The award of the arbitrator or arbitrators, as the case may be, shall be final and binding on the parties. The parties agree that if work under this agreement has not been completed at the time of reference of dispute to arbitration, the work shall continue during the arbitration proceedings and the Builder shall make the payment to the architects within the provisions of this agreement and shall not withhold any money payable to the architects on account of arbitration proceedings unless authorised by the arbitrators. 

16. This agreement shall be executed in duplicate and the architects shall bear the stamp duty on the original. The Builder shall retain the original and the architects shall retain the duplicate. 

IN WITNESS WHEREOF the parties hereto have subscribed their respective hands hereto and on a duplicate hereof on the day and year hereinabove first mentioned. 
 
Signed and delivered by 
the within named Builder 

Signed and delivered by
the within named architects 
by its Managing Partner 
WITNESSES;

1.

2.