Agreement To Demolish The Structure, Clear The Site And To Construct New Building On The Plot - Legal Draft

This

Agreement made at .............. on this ............ day of .................

2000, between A son of Shri.......... resident of ........... (hereinafter

called 'the Employer') of the ONE PART and XYZ Constructions, a partnership

firm, carrying on the business of builders and contractors, having its office

at .......... (hereinafter called 'the builders') of the Other PartWhere

as the employer is absolutely seized or otherwise well and sufficiently

entitled to the old bungalow being House No. ............. Mohalla............

with an area of ........ sq.mts which bungalow is more particularly described

in " First Schedule hereunder written, and is hereinafter referred to as

'the said bungalow.and

Where as the said bungalow has become very old and the employer intends to

dismantle the said bungalow and construct a new bungalow on the said plot of

land.and

Where as the builders are willing to undertake the said job of dismantling and

construction of the new bungalow in accordance with the plan and specifications

set out in the Second Schedule hereunder written.Now it

is Agreed between the Parties as Under:1.

The

builders agree to undertake the work of dismantling the said bungalow and to

construct a new bungalow in accordance with the plan, description and

specifications set out in the Second Schedule hereunder written (hereinafter

referred to as "the said works') in consideration of a sum of Rs..........

to be paid by the employer to the builders in the manner hereinafter provided.2.

The

builders will dismantle the said bungalow, clear the site and construct the

bungalow with the best available materials and in workmanship in accordance

with the directions of the employer's architect (hereinafter referred to as the

architect) in accordance with the plan, description, and specifications set out

in the Second Schedule hereunder written. However, the employer may require the

builders to alter the drawings and the nature of the work by adding or omitting

any items of work. Such alterations shall be paid at such rates as may be

mutually agreed upon.3.

The

builders shall take away the building material of the old bungalow and shall

clear and level the plot of land.4.

While

demolishing and constructing the bungalow, the builders shall carry out the

said Works in accordance with the law, rules and bye laws for the time being in

force affecting the said works and shall give the necessary notices to and

obtain the requisite sanction of the concerned local authorities in respect of

the said works and shall comply with building and other regulations of such

authority.5.

The

builders shall complete the said works on or before the expiry of ...... months

from the date of execution of these presents in accordance with the plans duly

approved by the municipal corporation of ..... and descriptions and

specifications and other terms and conditions as are set out in Third Schedule

hereunder written:Provided

however the architect, with the previous consent of the employer, may extend

the time for completion of the said works, it in his opinion the works are

delayed (a) by force majeure; or (b) by reason of any exceptionally inclement

weather; or (c) by reason of civil commotion, local combination of workman or

strike or lock-out affecting any of building trades; or (d) in consequence of

the builders not having received necessary instructions from the architect in

due time; or (e) from other causes which the architect may certify as beyond the

control of the builders.1.2.3.4.5.6.

The

employer shall pay to the builders, weekly during the progress of the work,

such sum as may be sufficient to defray the expenses for materials and other

out of pocket expenses, as certified by the architect.7.

The

builders hereby indemnify and keep the employer saved, defended and harmless

against any claims, demands, actions or proceedings that may be suffered by the

employer by reason of anything done by the builders as a result of the builders

committing breach of any rules and regulations or causing damage to any

adjoining property or any individual or otherwise howsoever in dismantling the

property or constructing the new bungalow on the said property or any letters,

applications and writings addressed by the builders pursuant to such authority

as also for the costs, charges and expenses which may be incurred or for which

the employer may become liable in that behalf.8.

The

builders shall be responsible for injury to persons, animals or things and for

all structural damages to the property which may arise from the operation or

neglect of the builders or their employees, nominees, sub-contractors or their

employees, whether such injury or damage arises from carelessness, accident or

any other cause whatsoever in any way connected with the carrying out of

construction pursuant to these presents. This clause shall be deemed to

include, inter alia, any damage to buildings whether immediately adjacent or

otherwise, and any damage to roads, streets, foot-paths, bridges or ways as well

as all damages caused to the buildings and works forming the subject of this

contract by frost, rain, wind or other inclemency of weather.9.

The

builders shall, within one week from the date of commencement of the works,

insure the works and keep them insured until the buildings complete in all

respects and fit for occupation are handed over to the employer, against loss

or damage by fire, earthquake, flood, cyclone, etc. with an insurer, in the

joint names of the employer and the builders for the full amount of the

contract and for any further sum, if called upon to do so by the employer. The

premium of such further sum shall be reimbursed to the builders by the

employer. The builders shall deposit the insurance policy and receipts for the

premia with the employer within fourteen days from the commencement of the

works, unless otherwise instructed by the employer. In case the builders fail

to insure as provided above, the employer may so insure the works and may

deduct the premium paid from any moneys due or which may become due to the

builders without prejudice to the other rights of the employer in respect of

such default. In case it becomes necessary to suspend the works due to any of

the risks covered under the policy, the builders shall, as soon as the claim

under the policy is settled, or the work reinstated should proceed with all due

diligence with the completion of the works in the same manner as though the

risk had not occurred and in all respects under the same conditions of

contract. The builders in case of rebuilding or reinstatement after the risk,

shall be entitled to such extension of time for completion of the works, as the

architects shall deem fit.10. If

the builders (i) have abandoned the contract; or (ii) have failed to dismantle

the old bungalow and remove, clean and level the plot of land; or (iii) have

failed to commence the works or have without any lawful excuse under these

presents suspended the progress of the works for fourteen days after receiving

from the architect notice to proceed; or (iv) have failed to proceed with the

works with such due diligence and failed to make such due progress as would

enable the works to be completed within the time agreed upon; or (v) have

failed to remove materials from the site or pull down and replace work for

seven days after receiving from the architect written notice that the said

materials or work were condemned and rejected by the architect under these

presents; or have neglected or failed persistently to observe and perform all

or any of the acts, matters or things by this contract to be observed and

performed by the builders for seven days after written notice shall have been

given to the builders requiring them to observe or perform the same; then and

in any of the said cases the employer may, after giving seven days notice in

writing to the builders, terminate the contract, on such termination of the

contract the employer by his agents or servants may enter upon and take

possession of the works and all plants, tools, scaffoldings, sheds, machinery

and other utensils and materials lying upon the premises or the adjoining lands

or roads, and use the same as his own property or and employ the same by means

of its own servants and workmen in carrying on and completing the works or by

employing any other contractor or other person or persons to complete the

works, and the builders shall not in any way interrupt or do any act, matter or

things to prevent or hinder such other contractor or other person or persons

employed for completing and finishing the works or using the materials and

plant for the works. When the works shall be completed or as soon thereafter as

convenient the architect shall give a notice in writing to the builders to

remove their surplus materials and plant, and should the builders fail to do so

within a period of fourteen days after receipt thereof by them, the employer

may sell the same by public auction, and give credit to the builders for the

net amount realised. The architect shall ascertain and certify what s a be due

or payable to or by the employer for the value of the said materials, plants

are so taken possession of by the employer and the amount which shall be so

certified shall thereupon be paid by the employer to the builders or by the

builders to the employer, as the case may be and the architect's certificate

shall be final and binding on both the parties.11. If

the builders fail to complete the said works within the period or extended

period, the builders shall at the option of the employer, but without prejudice

to the other rights under law of the employer and the other provisions herein

shall pay by way of liquidated damages a sum of Rs ......... per day for the

entire period of delay and the employer will be entitled to deduct such damages

from the amount becoming due and payable to the builders under this Agreement.12. The

builders shall not assign this contract to any other builder or contractor,

without written consent of the employer.13. The

builders hereby agree and undertake to rectify the defects pointed out to them

during the period of 12 calendar months from the date of handing over the said

buildings to the employer. If the builders fail to rectify the defects pointed

out or decline to cure such defects as pointed out by the employer within

fifteen days from the date of reporting to the builders, the employer may get

such defects cured by such other contractors as it may deem fit at the entire

cost and risk of the builders.14. The

builders shall deliver all the plans, detailed drawings and specifications to

the employer after the completion of the said works or otherwise terminated

under these presents.15. All

disputes arising between the employer and the builders under this Agreement

during the continuance of this contract or on its completion or on abandonment

thereof, shall be referred to arbitration to a single arbitration appointed by

both the parties. It both the parties do not agree upon the appointment of

single arbitrator, each party shall nominate his own arbitrator who shall

before entering on the reference appoint an umpire. The arbitrator or

arbitrators as the case may be shall deliver the award within a period of six

months from the date of entering on the reference. The award of the arbitrator

or arbitrators shall be final and binding on the parties. The parties agree

that arbitration under this clause shall be a condition precedent to any right

of action under the contract.In

Witness Where of the employer and builders have signed these presents, the day

and year first hereinabove written.Signed

and delivered by A.................... the within named employerSigned

and delivered by M/s. XYZ Constructions, the within named builders by their

partnersWITNESSES;1.2.