Agreement For Construction by EveryAvenue


									Construction Agreement. (General Terms & Conditions.) (DRAFT ONLY.)

1. The Terms and conditions pertaining to the construction of the Apartment as detailed, is
signed between the two parties (or more if applicable) which is duly been agreed and
accepted by the parties and signed on each page of this agreement.

2. The first party as detailed in this agreement shall be the buyer of the undivided and
inseparable share of land in the property and subsequent owner of the apartment.

3. The second party as detailed in this agreement shall be M/s MRG Builders (P) Ltd., having
its Registered office at MRG Souparnika, Kunnath Mana Lane, Thrissur 680001, State of

4. Whereas the first party has entered in to an agreement, to purchase One number of
shares out of the total shares of land offered for sale, in the form of undivided and
inseparable shares in the total area of land, as detailed in the Schedule A, in the land sale
agreement where in the complete details of landed property is scheduled as per the legal
opinion obtained by the second party from their Advocate, as to the possession and legal
right of ownership is certified, together with the right to construct an apartment as per the
approved plans and drawings.

5. The first party shall settle the cost and expenses of the said share of land as per the terms
and conditions stipulated in the land agreement, strictly through the second party, and get
the said share registered, at appropriate time, under the direction of the second party. The
agreement of land for undivided and inseparable share shall form a part of this agreement,
for construction.

6. The Second Party who shall be the Developers, Promoters and Builders of the said
Apartment building, has completed the designing, planning of the detailed drawings and
specifications and has submitted for permission from the concerned authorities. The second
party shall commence the project work as per the approved plans and drawings, at the cost
and expenses of the first party. The share in land is inseparable from the Apartment so

7. The Second party shall be responsible to manage and complete the entire project as per
the approved plans and drawings, with in the stipulated period from the date of approval or
date of signing this agreement which ever is later and hand over the facilities to the first
party within a reasonable grace period of 30 days.

8. Total number of shares offered for sale to the first party shall be as detailed in the land
share agreement, and the share holder shall have the right to construct the type of apartment,
detailed in this agreement, with the specified super built up area from the type of apartments,
detailed in Schedule B in this agreement as per the approved plans and drawings.

9. The individual area of the apartments may vary, from the individual measurements
detailed above where ever 2 apartments combined together for merging in to a larger
residence, or altered to the requirement of the client.
10. The total number of apartments in all, so constructed shall be as per the details in
Schedule B, and each of the share holder shall construct the apartment, detailed in Schedule
B in this agreement through the second party.

11. The second party shall construct the above apartments, in the said building as per the
approval of the concerned authorities.

Facilities provided in the Apartment Building.

12. The facilities shall include servant’s toilet, and the electrical panel board room for the
building, in the appropriate floor level, and open air area, as required by law, and detailed in
the Kerala Building Rules, free of cost to the apartment owners.

Car Parking facilities.

13. The covered car parking/ Reserved car parking area constructed in the ground floor
/and/or in the basement level for the purpose of car parking of the inmates of the apartment
building, if provided, shall be the property of the 2nd party (Builders) and the apartment
owners shall be entitled to purchase such covered parking upon payment of specified amount,
agreed between the parities, towards the cost of the covered parking area, directly to the
Builders along with the settlement of cost and expenses of the construction.

14. Such a parking facility shall either be located under the roof slab of the building in
basement or ground floor level, as the case may be or a reserved open area covered with
steel trusses and sheets as per the permissible norms stipulated in the building rules.

15. Such an area of covered parking shall be the legal and rightful property of the Builders
who shall have the right to sell the same to the required flat owners on first come first served
basis, and the undivided share holders shall have no right over the property of any kind and
shall have no right over the consideration so received from the sale of such covered parking
area. The buyers of such covered parking shall have absolute and clear right over the area of
the specified parking, and use only for the purpose of parking their vehicle, without causing
any inconvenience to the co-owners of such facilities.

Roof top area.

16. The second party shall construct roof over the top of the terrace with fabricated steel/
pipe trusses and sheets to protect the building from weather, and for the full utilization of the
area by the inmates, subject to the approval of the governing rules of the Department
concerned, as a gratis ( free of cost), in a generally acceptable manner, and the first party
shall have no demand for such a facility or demand for any refund for non compliance of
such a facility, for reasons beyond the control of the second party.

17. The Second party has agreed to construct the Apartment/Flat more fully specified and
described in the Schedule B, as per the approved plans and drawings for a consideration of
amount specified in the said Schedule B. Accordingly the first party doth hereby entrust the
construction of the said Apartment and related common areas to the second party for the said

Area of the Apartment - Super built up area.

18. Super built-up area as mentioned in this agreement includes common areas such as
staircase, lobbies, septic tanks, passages, passenger lift and generator room,(applicable for
high rise buildings) electrical meter room, roof terrace floor etc. A detailed typical plan of
the individual Flat concerned to this agreement shall be attached and forms an integral part
of this agreement.

Payment of installments.

20. The total amount of the cost of construction together with other payment obligations are,
payable by the first party to the second party, A/C MRG BUILDERS (P) LTD. by cheques /
drafts in installments on or before the due dates, as per the payment schedule detailed below,

21. Details of allotment, type of apartment and payment details.


Name of the Project :

Type of Apartment / Flat. : 2/ 3 bedroom with a super built up area of       s.ft

Apartment / Flat Number and Floor :

Value of this agreement :

The total value of this construction agreement shall be as detailed below:

Total value of construction of apartment
( excluding the cost of undivided share in land)          :

Cost of the covered car parking ( if opted)

Total value of this agreement                             :

22. Payment Schedule.

1st payment of 12.5% shall be due after 45 days from the date of agreement.
2nd payment of 12.5% shall be due after 60 days from the first payment date.
3rd payment of 12.5% shall be due after 60 days from the second payment date.
4th payment of 12.5% shall be due after 60 days from the third payment date.
5th payment of 12% shall be due after 60 days from the fourth payment date.
6th payment of 12% shall be due after 60 days from the date of fifth paymentdate.
7th payment of 12% shall be due after 60 days from the date of sixth payment date.
8th payment of 12% shall be due after 60n days from the date of seventh payment date.
final payment of 2% at the time of handing over the project.

23. The entire payment detailed above, is payable in various installments, on the above
detailed manner, during the tenure of the project, and the total installments shall depend on
the individual project completion period as detailed in the agreement.

24. In the event of the first party joining the scheme, during the course of the construction
work in progress, the standard terms of payment stipulated in this agreement may vary and
the first party shall make the installments in such a way that the arrears of payment are
covered at the time of joining the agreement and subsequently clear all arrears of payment
prior to the time of handing over the facilities irrespective of any period scheduled.

25 . A grace period of 15 days are granted to cover up any delay in the prescribed payment
date and the first party is obliged to clear the specific installment and meet the payment
schedule within the grace period. Any further delay, the first party shall be liable to clear the
dues with an interest of 15% p.a. for the delayed period. The first party shall not demand the
handing over of the completed apartment until and unless all outstanding amount is cleared
to the second party.

Other Payment liabilities.

26. The first party shall be liable to effect the additional payments on account of the
following :- As and when requested by the second party

     a. Stamp duty and Registration charges.

     b. Service Tax & Education Cess payable to the Central Govt.

     c. Labour Cess/ Building Tax/ Other Taxes payable to the Govt. of Kerala.

     d. Other Revenue expenses/Corporation Taxes etc.. payable to the Thrissur corporation

     d. Electricity & water connection charges / cable laying expenses/ Transformer and
        other necessary deposits.

     f. Association fund for the maintenance of the building.

     g. Any extra work carried out on the apartment at the request of the first party.

     h. Transfer of ownership in the name of the owners, payment of initial taxes -
        Corporation house tax, and any other revenue expenses that may incur at the time of
        completion, and as per the directions of the Government from time to time.

27. The progress of construction work may vary from floor to floor and the first party shall be
liable to effect the payment on time, as per schedule. The second party shall complete the
work in all respects and handover the facilities to the first party as per the completion

Arrangement of Housing loans / finance.

28. In case, the first party opts for any housing finance/ loan scheme from any financial
institutions, the original documents pertaining to the undivided share of land and right to
construct the apartment, shall be handed over directly to the financier, without any reference
to the first party, and the first party shall give necessary disbursement instructions to the
financier, without causing any inconvenience to the second party on due dates.

29. The second party shall obtain pre approval from certain financial institutions like HDFC
/ ICICI or similar banks, for the project after submitting all necessary documents pertaining
to the project. There fore the first party if opted for the loan, shall submit all required
documents and get his entitlement of loan sanctioned for the payment of installments, from
the proposed bank.

30. The Second party as the contractor, is fully authorized by the first party, and reserves the
right, to alter or amend the specifications/clauses, location of internal facilities of this
contract, as required by law, or as per the site conditions and shall incorporate all such
changes of design if any, in the completion drawing and obtain approval from the authorities
concerned, which shall be acceptable by the first party. The second party is authorized to
make such decisions as and when found necessary, so as to enable the second party to
complete the contractual obligations on time, to the best advantage of both the parties, in line
with approval and/ or governing rules and regulations of the departments concerned. Any
cost variation due to such changes and any increase or decrease in the total area of the
apartment shall be settled amicably between the parties concerned.

Specifications of Construction.


31. RCC framed structure, with suitable foundations as per the requirements of the site soil


32. Concrete solid / Hollow Block partition walls with cement Plastered to finish.

33. Ceramic tiles for the entire floor built up area of the Apartment building, i.e. All floors of
the apartment in suitable colors, common lobbys , Baths and toilets. Stair case steps in
Ceramic tiles builders option. Non slippery tiles shall be provided in places, wherever


34. The kitchen platform shall be provided in ferro – cement slabs, finished with Granite top
for kitchen slab/ platform, stainless steel sink & glazed tiles dadoing upto 60 Cms. height,
above the platform.

35. Main entrance door in high grade furniture quality / Teak wood, or equivalent and all
internal doors in similar furniture quality hardwood framed and paneled with Marine
plywood/ or good quality solid door shutters at builders choice with standard fittings and
quality painted / polished to finish. All door frames shall be of good similar type of finish with
teak wood for entrance door and hard wood for internal doors. All hard wood presently used
are of imported / and teak wood of Burmese / and or Indian origin., subject to the
availability. The second party reserves the right to use alternate wood of good quality, at
their own discretion, without any reference to the first party.


36. All windows and ventilators shall be made of good quality Aluminium frames with
suitable iron grills/ with aluminium framed window shutter frames with glazed opening /
sliding type, with suitable fittings.

37. The stair case railings shall be of high class steel pipe railings suitably painted to finish
and stair step with non slippery tiles to suit the colour of the general floor tiles.


38. All Electrical lines shall be concealed conduit copper wiring with standard
switch/sockets/plugs provided . Provision for Separate Meters for all flats, with necessary
Panel Boards and fittings .All materials used shall be of ISI Branded and the Selection of
Brand names are at the discretion of the Builders. Fixtures such as Electric fans, Exhaust
fans and electrical fixtures, Electrical water heaters etc. ,are not included in this agreement.


39. All water lines provided inside the apartment are concealed hot /cold water pipe lines on
bathrooms where- ever specified in drawing. Water connection lines are provided for each
flats, from the overhead water tanks for sufficient flow of water. Heavy grade PVC pipes are
used for cold water connections and CPVC pipes for Hot water lines where-ever specified..


40. White coloured quality sanitary fittings and glazed tile dadoing upto 2.0 m height.
 Suitable PVC doors with quality PVC frames for the toilets, with necessary iron mongery.
All pipe fittings shall be chromium plated of branded companies.


41. Internal walls are finished to MRG standard with high class putty work and plastic
emulsion paint and external walls with guaranteed weather coating of international standard
/ companies, available at the time of requirement.(equivalent branded weather coating
material )

42. Septic tanks, soak pits and dispersion trenches will be provided as per requirement and
suitable connections from each toilets and bath rooms and kitchen outlets.

43. The information provided are basing on the availability of materials and the builder shall
substitute with equal quality of materials if not available at the time of construction. MRG
has built up its reputation for its quality construction, and the standard of MRG quality shall
be maintained at all level.


44. At the request of the first party, any internal alterations, without affecting the structural
work, to the facilities can be incorporated during the time of construction, as permitted by
law. Such alterations has to be agreed in writing with the builder, prior to commencement of
such work, and breaking and re doing the same work in any manner are generally accepted,
on the condition that all such cost and expenses be paid by the buyer and settled at
appropriate time.

45. Grill work at work area and /or in Balcony will be charged extra at cost, and are
provided, along with the construction work, to avoid and breaking up on completion of the
work. Such additions shall be discussed prior to commencement of such work, and requested
in writing by the first party.

46. The first party shall be liable to settle all arrears prior to taking over the keys of the
completed Apartment, at appropriate time.


47..The first party shall not do anything on the Apartment Building, which will affect the
strength and support of the remaining part of the multi-storied building.

48. The first party shall have no right to interfere with or object against the second party in
constructing the building and facilities, and carrying out the contractual obligations, in line
with this contract/ agreement, as per the approved plans and drawings or any changes
incorporated as detailed in paragraph (26) in this agreement.

49. The first party has the right to use the common facilities such as the staircase water
tanks, septic tanks, common verandas, open roof terraces and other common places in the
Building, but the first party shall not obstruct or interfere with the common use of the same
facilities by co-owners of the Building and the first party should not cause any nuisance,
obstructions and problems to the co-owners of the Building, for carrying out any repairs or
maintenance of the service lines in future.

50. The first party shall not assign their rights under this agreement to any other person/s
without the written consent of the second party until handing over the possession of the
apartment so constructed, and the cost and expenses of construction settled to the second

51. The first party shall not convert the facilities so constructed for any other purposes other
than stipulated in this agreement and if the first party does any changes shall do so at own
risk and obtain necessary permission from authorities concerned for such changes without
making the other party liable or responsible for any objections raised by the authorities or
co-owners for such changes, except any internal alterations carried out during the time of
construction, strictly for residential purposes.

52. The first party shall have the right to utilize the open area for car parking along with the
other co-owners of the Building without having any specific right or demand for any specific

53. The land owners, at the direction of the second party, is free to sell, or
Other wise dispose off the remaining undivided shares with them to Person interested in
owning such share of land and construct an Apartment thereon and the first party has no
right or claim on profit, whatsoever so made by the second party .

54. The Second party assures the first party, a quality construction with good quality
materials and workmanship presently available. All efforts would be made to complete the
contractual obligations by the Second party in time, as per the specifications and any delay
beyond the control of the second party due to Act of God, natural calamities, strike,
Government or Department interference, riots, and non availability of specific materials are
to be treated as no fault of the Second party and full co-operation between the parties are the
vital clause of this contract.

Electricity /Water/Telephones.

55. All service cables, transformer, and electrical connection charges, development charges,
caution deposits, as demanded by the concerned department authorities at the time of
electric connection to the Apartment        Building, shall be paid by the first party without
making the Second        party liable for such payments. This condition is applicable for both
temporary and/ or permanent connections.

56. The Second party shall provide Panel boards, distribution boards within the
Apartment Building, where aforesaid connections are made by the departments concerned,
with necessary ELCB and MCB.

57. The second party shall be providing ground water / or Bore well facilities    together
with the required over head storage tanks for the use of the Flat owners, as per the site
conditions. The Flat owners may be eligible for individual or group water connection from
the Corporation/ Government water lines, upon completion of the construction work, and
obtaining the door number formalities, as per the prevailing rules and regulations of the
department, for such connections, at the cost and expenses of the first party.

58. The common facilities, provided in the building shall be the common property, which
shall be provided with the manufacturer’s warranty, and all assistance would be provided to
maintain the facilities. Ultimately, after the warranty period the maintenance of the facilities
shall be the exclusive responsibility of the owners, and no responsibility shall be shared by
the second party. The warranty does not include the consumables, power consumption
charges. Etc. a common electric meter would be provided for all common electric
connections such as the lighting, water pump, etc. and such charges shall be shared by the
flat owners without making the second party or the land owner liable for the same, under any

59. The Second party shall assist and co-ordinate for the above service lines such as
electricity/ water/ telephones etc., and the Second party shall not be legally bound to provide
such connections which are entirely governed by the rules and regulations of the departments
concerned, therefore the Second party cannot be held responsible for any delay due to the
prevailing changes in the policies of the concerned departments, which is normally beyond
the control of the Second party, even if necessary payments are made for the purpose of
such connections.

60. Applications are submitted in the individual names of the owners for the above facilities
and the second party shall complete and co-ordinate all technical documentation for the
above facilities and the first party shall make necessary payments to the departments to speed
up such applications whether the applications are made for temporary or permanent

Owners Association.

61. The first party agrees and undertakes to join with the other co-owners of the Building to
form necessary association or society and get the same registered at the appropriate time, for
the following.

     a. For representing any departments such as electricity, water, telephones or any
        similar Government or Private agencies to be represented by the President or
        Secretary of the residents’ association.

     b. The first party agrees and undertakes to pay any amount becoming liable for the
        share of charges for the upkeep and maintenance of the common areas, amenities
        and facilities in the Building, and relieve the Second party from any such

     c. The contribution for the association fund has to be effected at appropriate time, for
        meeting the expenses for the above including the expenses for electric connection for
        the Building.

Performance Guarantee.

62.. Under the general guarantee, the Second party as the contractor undertakes the
maintenance of service lines, for any defects, and to replace or repair the defects for the
period of 12 months from the date of completion, for any defective materials or workmanship
for the construction work.

62.a. Guarantee for the elevator and generator shall be covered by the manufacturer for a
similar period, record of which shall be the official completion certificate issued by the

63. This does not include the responsibilities of housekeeping etc., such as:
    a. Maintenance of pump sets and electrical, to the Apartment Building.
    b. Replacement of electrical bulbs in corridors and general area.
    c. Payment of electrical and other charges for the common/individual services.
    d. Provision for watch and ward.
    e. Painting of common areas and general.
    f. Cost of running the generator set and passenger lift.

64. From the date of handing over the facilities, the owners of the building shall make
arrangements        through        the       owners’        association,    or       by       the
residents, for necessary watch and ward and such a liability be relieved from the second
party, or to continue the prevailing facilities with contribution of amount by the first party.

65. The Second party as a contractor agrees to absorb the normal inflation on cost of
construction, but the increase in prices beyond the control of the Second party shall be borne
by the first party which stands presently between 4 - 5%.

Arbitration Clause.

66.. Any dispute arising out of this contract shall strictly be subject to the
Thrissur Jurisdiction and any such breach of contract or dispute shall be settled through an
arbitrator, acceptable for both the parties, and if no solutions are reached, the matter shall
be referred to the Court of Law in Thrissur.

67. Any other matter that has not covered in this agreement shall be governed by the law
pertaining to similar transactions and acceptable by both the parties.


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