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 Kerala. 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 constructed. 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.
2. 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 consideration.
3. 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. SCHEDULE B. Name of the Project : Type of Apartment / Flat. : 2/ 3 bedroom with a super built up area of 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. : : s.ft
4. 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 schedule.
5. 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. STRUCTURE WORK. 31. RCC framed structure, with suitable foundations as per the requirements of the site soil conditions. SUPER STRUCTURE: 32. Concrete solid / Hollow Block partition walls with cement Plastered to finish. FLOORING 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 necessary. KITCHEN 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.
JOINERY : 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. WINDOWS/VENTILATORS : 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. ELECTRICALS: 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. PLUMBING: 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.. TOILETS/BATHROOMS 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. PAINTING INTERNAL - EXTERNAL: 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 )
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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. ADDITIONAL WORK. 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.
General.
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 party.
8. 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 area. 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.
9. 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 circumstances. 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 connections. 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 responsibilities. 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.
10. 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 authorities. 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.
DRAFT MODEL AGREEMENT ONLY/