CONSTRUCTION & ENGINEERING CONTRACT

(As per the Indian Contract Act, 1872 & Other Applicable Laws in India)

This Construction & Engineering Contract (“Agreement”) is made and entered into on [Date], at [Place], by and between:

1. Employer/Client: [Full Name/Company Name], a [individual/company] registered under [Applicable Law], having its registered office at [Address] (hereinafter referred to as the “Employer” or “Client”).
2. Contractor: [Full Name/Company Name], a [individual/company] registered under [Applicable Law], having its office at [Address] (hereinafter referred to as the “Contractor”).

(The Employer and Contractor shall be collectively referred to as “Parties” and individually as a “Party”).

1. PROJECT DETAILS

1.1 Project Name: [Project Title]
1.2 Project Location: [Exact Site Address]
1.3 Scope of Work: The Contractor agrees to perform construction and engineering services as per the specifications provided in Schedule A (Scope of Work & Drawings).
1.4 Project Timeline: The project shall commence on [Start Date] and shall be completed by [End Date], subject to any approved extensions.

2. CONTRACT VALUE & PAYMENT TERMS

2.1 Total Contract Price: ₹[Amount] (Rupees [Amount in Words])
2.2 Payment Schedule: The Employer shall make payments as per the following schedule:

2.3 Mode of Payment: Payments shall be made via [NEFT/RTGS/Cheque/DD] to the Contractor’s bank account.
2.4 Retention Amount: [Percentage]% of the contract value shall be retained for [Number] months after completion as a performance guarantee.

3. RESPONSIBILITIES OF THE PARTIES

3.1 Employer’s Responsibilities

• Provide site access and necessary permissions.
• Ensure timely payments as per the agreed schedule.
• Conduct periodic inspections and approvals.

3.2 Contractor’s Responsibilities

• Complete construction work as per approved designs & specifications.
• Use high-quality materials and skilled labor.
• Ensure compliance with local building laws, safety regulations, and environmental laws.
• Maintain site security and worker safety.

4. VARIATIONS & CHANGES

4.1 Any changes or modifications in the scope of work must be approved in writing by both parties.
4.2 Additional costs for extra work shall be calculated based on mutually agreed rates.

5. DELAYS & PENALTIES

5.1 Delay Penalty: If the Contractor fails to complete the work within the agreed time, a penalty of ₹[Amount] per day/week shall be deducted.
5.2 Force Majeure: Delays due to natural calamities, war, strikes, or government restrictions shall not attract penalties.

6. QUALITY CONTROL & INSPECTION

6.1 The Employer shall conduct periodic inspections to ensure compliance with specifications.
6.2 If defects are found, the Contractor shall rectify them at no additional cost within [Number] days.

7. WARRANTY & DEFECT LIABILITY PERIOD

7.1 The Contractor shall provide a warranty of [Number] years on the construction work.
7.2 Any structural defects or failures within the warranty period shall be repaired by the Contractor at their own cost.

8. SAFETY & LEGAL COMPLIANCE

8.1 The Contractor shall comply with The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and other relevant safety regulations.
8.2 All workers must be insured as per Workmen’s Compensation Act, 1923.
8.3 The Contractor shall be responsible for waste disposal and environmental protection measures.

9. TERMINATION OF CONTRACT

9.1 The Employer may terminate this contract if:

• The Contractor fails to complete work within [Number] days of the deadline.
• Substandard materials or non-compliance with design specifications are found.
• The Contractor becomes insolvent or bankrupt.

9.2 The Contractor may terminate this contract if:

• The Employer fails to make payments for more than [Number] days after the due date.
• Unforeseen site conditions make work impossible or hazardous.

9.3 In case of termination, both parties shall settle pending payments and outstanding obligations.

10. DISPUTE RESOLUTION & GOVERNING LAW

10.1 Any disputes arising under this contract shall first be attempted to be resolved through mutual discussion.
10.2 If unresolved, disputes shall be settled through arbitration under the Arbitration and Conciliation Act, 1996.
10.3 The courts of [City] shall have exclusive jurisdiction, and this agreement shall be governed by Indian laws.

11. GENERAL CLAUSES

11.1 Entire Agreement: This contract represents the entire understanding between the parties.
11.2 Amendments: Any changes must be in writing and signed by both parties.
11.3 Severability: If any clause is found invalid, the remaining provisions shall still be enforceable.

IN WITNESS WHEREOF

The parties have read, understood, and agreed to the terms and conditions set forth in this Agreement and have signed below:

For Employer/Client
Signature: _______________
Name: ___________________
Designation: _____________
Date: _______________

For Contractor
Signature: _______________
Name: ___________________
Designation: _____________
Date: _______________

Witness 1
Signature: _______________
Name: ___________________
Address: ________________

Witness 2
Signature: _______________
Name: ___________________
Address: ________________

This Construction & Engineering Contract ensures clear responsibilities, legal protection, and smooth project execution.