CONSTRUCTION AGREEMENT BETWEEN BUILDER AND CO-OPERATIVE SOCIETY

This agreement made this 5th day of July 2000 between………., a partnership firm carrying on business at ……….. (hereinafter referred to as the builder which expression shall include its present and future partners, their heirs, executors, administrators and assigns) of the One Part and Mr. XY residing at and owner of………….(hereinafter referred to as the chief promoter which expression shall include his successors and assigns) of the Other Part. 
Whereas the builder is a partnership firm engaged in construction of buildings.
And whereas the said Mr. XY is the chief promoter of the XY Cooperative Housing Society Limited, to be registered under the West Bengal Co-operative Societies Act 1983 comprising the proposed purchasers of flats of the building to be constructed on the plot at ……….. (hereinafter referred to as the said society).
And whereas the members of the said society are desirous of entrusting the task of construction and erection of a building on the plot......on agreed terms and conditions.
Now this agreement witnesseth and the parties agree as follows:

1.The builder intends to purchase the plot of land at……….	measuring 6 cottahs and thereafter to transfer it in favour of the SOCIETY.
2. The society accepts the Certificate of title given to the builder by Mr. XVs Advocate to the effect that the title to the property in question is marketable, free from encumbrances and reasonable doubts and that no requisitions will be made or objection taken by the society as regards the title.
3. The chief promoter shall cause registration of the Society under the West Bengal Co-operative Societies Act 1983.
4. On its registration the chief promoter will apply for financial assistance by way of loan to the West Bengal Co-operative Housing Federation Ltd. (hereinafter referred to as 'Federation') for at least 75% of the estimated cost of the land and construction cost of the building.
5. Negotiation with the said Federation is already in progress and it is expected that 75% at least of the total finance required by the society will be granted by way of loan by the said Federation on mortgage of the land by deposit of title deeds.
6. The copies of plan, specifications, list of amenities and the drawings in respect of the building to be constructed on the plot prepared by Mr………..Architect has been furnished to the builder and the Builder has taken inspection of all documents necessary for the purposes of construction of the multi-storeyed building. The builder has given to the Society two sets of the plans, specifications, list of amenities and drawings and one set whereof is returned signed by the chief promoter. The builder shall present to the Calcutta Municipal Corporation the necessary plans for being sanctioned.
7. The builder will purchase the land measuring 6 cottahs and the builder shall construct for the society according to the sanctioned or approved plans, specification, amenities and drawings a five-storeyed building with parking space on the said plot of land.
8. The society will pay to the builder for the land and for construction of the building Rs. 78 lakh. The price will include the laying of drainage and water connections to the Municipal mains and electric connections to the CESC Ltd. mains and all the specified amenities.
9. The price will be paid to the builder by the following instalments:
(a) Rs. 18 lakhs immediately on execution of agreement and satisfying the said society that the conveyance of the said plot of land in the Builder's favour will be executed:
(b)A further sum of Rs. 18 lakhs will be paid to the Builder on or before 5th October 2000 or on commencement of construction work by the builder whichever is earlier;
(c)A further sum of Rs. 1.5 lakhs will be paid to the Builder on or before 5th day of January 2001;
(d)As to a further sum of Rs. 1.5 lakhs (which sum when paid will be 50% of the total price of land, building and garage spaces to be constructed by the builder) will be paid to the Builders on or before 5th April 2001;
(e)Over and above the sum specified in sub-clauses (a), (b), (c) and (d) above, all sums or advances which may be received by the society from time to time from the Federation under its arrangement with them will be paid to the builder as and when it is received;
(f) The balance price will be paid to the builder on completion of the construction of the building on obtaining completion certificate and occupation certificate.
10. (a) In default of payment of any two of the payments referred to in clause 9 above, the builder will be entitled to forfeit the sums already paid and the agreement will be terminated and the chief promoter or the society shall have no claim against the builder for specific performance or for compensation or for damages or otherwise;
(b) If within a year hereof the society is not able to enter into an agreement with the West Bengal Co-operative Housing Federation Ltd. for obtaining loans by way of advance of not less than 75% of the estimated cost of land and construction cost of the building to be disbursed periodically against construction work as it proceeds then notwithstanding anything herein contained this agreement shall stand terminated and no claim for specific performance, damages, compensation or otherwise on either side would lie and the builder shall return to the chief promoter and the society the sums already received after deducting all costs and expenses incurred within a period of three months.
11. On receipt of Rs. 36 lakhs by the stipulated instalments the builder will execute in favour of the society a conveyance of the plot of land for a sum of Rs. 78 lakhs. All costs of and incidentals to the conveyance including stamp duty and registration charges will be paid by the society. The society will take no objection and make no requisitions as regards the builder's title thereto. The builder will make a declaration that they have not themselves created any encumbrance on the land and that charge in favour of the West Bengal Co-operative Housing Federation Ltd. on the land will have a first charge and the Builder's right over the land will be subject to any such first mortgage in favour of the said Federation. Notwithstanding the Builder's right to retain possession of the building to be constructed until the full price and all other moneys due to the builder are paid all the
Builder's legal rights under this Agreement and at law against the Society would remain unimpaired.
12. If any alterations are made in the plans at the instance of the Calcutta Municipal Corporation or any other authority the society shall accept the same. The builder will also not make any further charge on the society on acceptance of such alterations. All outgoings of all kinds payable to the Calcutta Municipal Corporation or any other authority as from the day the land is conveyed in favour of the society will be borne and paid by the society and it shall accept the Builder's invoices or bills or vouchers and pay the same forthwith on presentation.

13. The society shall engage and appoint Clerk of Works for the supervision of the construction work. Any difference of opinion as regards any matter arising in connection with the construction work between such clerk-of-works and the Builder will be decided in accordance with the directions of the said Architect whose decision shall be final and conclusive and binding on the parties.
14. The plans, drawings and specifications shall be and remain the Builder's property until the completion of the conveyance in favour of the society. If any discrepancy arises between the specifications and the plans or drawings, the specifications shall prevail over and be deemed to be correct and binding notwithstanding the drawings. The builder hereby agrees and undertakes that it shall remove all surplus material, plant and rubbish from the premises before handing over the possession of the Building and at the Builder's own cost. The builder shall clean the entire site of all materials and make the compound level in good order cemented and/or tiled and usable. The builder will lay the lawns and flower beds and get the passage in the compound as shown in the plans concreted before handing over possession. All plant, equipment and materials brought on the premises by the builder shall be removed forthwith on completion of construction work.
15. The builder hereby agrees and binds itself and its agents that it shall conform to the provisions of all Acts, rules and regulations and bye- laws for the time being in force and shall and will give all necessary notices to obtain sanction of the local authorities in respect of the construction work and generally will comply with the building and other regulations of such authority. For any such purposes, the Society's consent or authority if required will be promptly given.
16. The Builder hereby undertakes that it will not without the consent of the Society assign or sub-let the work of building or construction or any part thereof to any person except labour, planning, drainage, water supply and electric installations.
17. In the event of any accident or extra work to be done or variation made or Force Majeure, Acts of Gods, Civil Commotion, disturbance, conflict of any kind or non-availability of materials such as cement, steel, etc. the Builder will be entitled to an extension of time proportionate to the delay caused in order to enable the Builder to complete the constructions. In case of differences of opinion as to the time to be extended the said Architect will compute the period of delay and the extension of time for completion of the construction.
18. The Builder shall at all times during the period of construction keep all its labour and supervisory staff duly insured against all risks for workmen's compensation.
19. The Society will pay directly to Calcutta Municipal Corporation any amount that has to be paid towards consumption of water by the Society after the building is occupied and pay the CESC Limited for consumption of power.
20. The Society and its Architect will be entitled to inspect the building to be constructed by the Builder from time to time during the period of construction and after receipt of notice of completion. Any requisition or objection in respect of the construction work and/or whether it has been carried out in accordance with this agreement shall be taken and intimated to the Builder within 30 days of receipt of notice of completion and/or inspection whichever is later. If no requisition is made or objection taken within the said period of 30 days, the right to make requisition or take objections will cease and all objections shall be deemed to have been waived. Nothing herein contained shall however entitle the society to delay or defer payments to the Builder of the balance of the moneys due to the builder and the same shall be paid on the due dates therefor.
21. The society shall as soon as it is registered under the West Bengal Co-operative Societies Act 1983 ratify this Agreement and if so required by the builder will at its own cost execute proper documents to confirm and carry out the terms and conditions and other stipulations herein contained in conformity with the law.
22. All disputes, differences arising during the continuance of this Agreement or thereafter between or among the Builder, the society, the chief PROMOTER/Chief Promoter's representative touching or in relation to the Agreement between the builder and the chief promoter and/or the society or the construction or application thereof or any clause or thing in this agreement contained or as to any act, deed or omission of any party in any way relating to this agreement or the rights, duties or liabilities of any party under this agreement shall be settled through the arbitration under the Arbitration and Conciliation Act 1996 and if any dispute arises after the registration of the said society, such dispute shall be referred to the Registrar of Co-operative Societies, West Bengal under sections 95 and 96 of the West Bengal Co-operative Societies Act 1983.
The First Schedule
Gr. Floor	1st Floor	2nd Floor	3rd Floor	4th Floor

The Second Schedule Payment of amounts on following dates:
On signing of Agreement Rs……..
	2000    Rs.
	2001    Rs.
	2002    Rs.
Amounts to be received from
Housing Federation Ltd………Rs.
In witness whereof the parties hereto have executed these presents on the day, month and year first hereinabove written.
Signed, sealed and delivered by
Mr………….
pursuant to Board Resolution of
Builders Limited dated……..
in the presence of:                                                                     Signature
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Signed and Delivered by Mr. XY
the chief promoter in presence of:                                             Signature
1
2