Building Contract

PROFESSIONAL PRACTICE - SEMESTER 7

By Ar. Persis Rebello

 Contract
• Contract is a written agreement between the client / owner and the
contractor to execute the work as specified in the tender document as per
the conditions of contract.
• It is a post – bidding document.
Execution of Contract
• The contract is executed on a stamp paper of the value as prescribed under
Indian Stamp Act, 1899 and must be signed, sealed and delivered.
• Unstamped documents cannot be admitted in evidence before an
arbitrator or court.
• In case of contract by public bodies, Government and local authorities, the
seal of the authority must be affixed by authorized person and the seal
shows that every member of that party is bound by whatever has been
done by the person authorized to do so.
 Discharge of Contract
1. By agreement
2. By performance
3. by being excused by law from performing it.
4. By breach

When does Contract become void?

1. Misrepresentation
2. Fraud
3. Mistake
Contract Document

• Prior to 1936, architects had their own forms of contract usually

prepared with the legal assistance. However Indian Institute of
Architects, came out with its form of contract for the first time in
1936 and a revised from in 1979.
• The model I.I.A. form for contract document consists of,
1. Articles of Agreement.
2. General conditions of contract.
3. The Appendix
General conditions of contract

1. Contract Document:
• The following documents shall constitute the Contract Document:
• General Conditions of Contract
• Special Conditions of Contract
• Appendices
• Specifications, contract drawings, Bill of Quantities, rates & summary.
• Work Order, Contract Variation Documents & Articles of Agreement.

2. Contract document will have its own importance in case of conflicts and
no other than above will be considered as contract documents.
General conditions of contract

3. Type of Contract:

• The type of Contract shall be specified and the contractor shall be paid for
the actual quantity of work done at the rates quoted by him in the Bill of
Quantities.
• Any error in description or in quantity or omission of items from the Bill of
Quantities shall not vitiate this Contract but shall be treated as a Variation.
General conditions of contract
4. Scope of Work
• The Contractor shall carry out and complete the work in every respect in
accordance with this Contract and with the directions of and to the
satisfaction of the owner / Consultant. The Consultant may in his absolute
discretion from time to time issue further details and/or written
instructions, directions which are collectively referred to as Consultant’s
instructions.

• Before undertaking any work, which is not specified, and/or which is at

variation with the bill of quantities, the Contractor shall obtain necessary
written instructions in the form of Contract Variation Document from the
Consultant.
General conditions of contract
5. Scope of contract drawings.
a) Drawings – indicate dimensions, positions, type of construction.
b) Specifications – qualities of works, materials, and methods.
c) Bill of quantities – quantity of works and rates of each item of the work.
• Errors and discrepancies between drawings and specifications must be got
corrected or interpreted from the architect and necessary corrections if
needed be carried out.
• Incase of repetitive items, details or specifications for specified item will
apply to repetitive or similar items.
General conditions of contract
6. Architect’s instructions
• All instructions issued by the Architect shall be in writing.
• Architect can confirm in writing the instructions within 7 days from issue of
instructions orally.
• The Contractor shall forthwith comply with and duly execute any work
comprised in such instructions issued to him by the architect in regard to
any matter in respect of which the architect is expressly empowered by
these conditions.
 General conditions of contract
7. Architect’s duties and liabilities under contract

1. As an Agent of the owner.

2. As interpreter of the contract.
3. As Quasi – arbitrator.
4. As impartial instruction issuing authority.
General conditions of contract
8. Progress of work.
The Contractor shall prepare, bar charts and schedule of work for the entire
job and submit the same for approval of the architect and for his record
within 7 days of the award of contract. The charts shall indicate the expected
date of commencement and completion of each of the items of the work
and shall be in a form approved by architect . The chart shall also indicate
the scheduling of samples, shop drawings and approvals and bringing
material on site. Check list charts for individual external walls should be
prepared and submitted before starting the work along these walls. All these
charts and schedules should be updated regularly and submited to the
architect time to time as specified.
 General conditions of contract
9. Taxes
• Rates quoted shall include all royalties, terminal taxes, octroi duties,
central or state excise tax, sales tax, income tax and any other tax in force.

10. Statutory obligations, notices, fees and charges.

• Relevant notices for approval of various works like drainage, electrical,
installation of lifts, etc. is required to be given by the architect.
• The contractor is liable for all fees and charges required to be paid.
 General conditions of contract
11. Licenses & Permits
Licenses and permits required for all materials under Municipal or
Government control shall be obtained, by the Contractor at his own cost and
copies shall be kept available at site for inspection and additional copy of the
same to be submitted to the owner for record purpose.

12. Water for Construction

• The contractor must provide water connection needed for construction
purpose at his own cost.
• The contractor to pay for water consumed for construction purpose.
 General conditions of contract
13. Certificates and payment
• The architect shall issue the interim certificate to the Contractor against
the bill submitted after due verification.
• The Contractor shall be paid by the owner on the basis of Certificate issued
by the architect within the time from date of issue of Certificate mentioned
as Period of Honouring Certificate in Appendix A.
 General conditions of contract
14. Damages
• The Contractor shall be responsible for all injury including death of
persons and/or other workmen/employees, animals, vehicles or things
and for all structural and decorative damage to property which may arise
from the operation or neglect by himself or of any nominated
subcontractors employees, whether such injury or damage arises from
carelessness, accident or any other cause whatever or in any way
connected with the carrying out of this contract.
• The Contractor shall indemnify and keep indemnified the owner and hold
owner harmless in respect of all and any expenses arising from any such
injury or damage under any Act of Government or otherwise and also in
respect of any award, compensation or damages consequent upon such
claim.
 General conditions of contract
15. Insurance
• The contractor shall indemnify and keep indemnified the owner against all
claims which may be made against the owner by any member or the
public or other third party in respect of anything, which may arise in
respect of the works or in consequence thereof and shall at his own
expenses, arrange to effect and maintain, until the completion of the
contract, a policy of insurance with an approved Insurance Company in the
joint names of the owner and the Contractor against such risks and
deposit such policy or policies with owner from time to time during the
currency of this contract.
 General conditions of contract
16. Protection of Work and Property
• During the progress of work, the Contractor shall be responsible for
complete protection of the building and its contents and of adjacent
property on or about which the work is being done. Any damage to
property, the building or its components caused by failure in performance
of these requirements must be made good by the Contractor at his own
expense and to the entire satisfaction of the owner.
• The Contractor shall make his own security arrangements to guard the site
and premises at all times at his own expense. The security arrangements
shall be adequate to maintain strict control on the movement of material
and labour.
 General conditions of contract
17. Site
• The Contractor shall have the responsibility of satisfying himself as to
the nature and location of the site, the applicable laws, agreement and
regulations, the general and local conditions, particularly those bearing
upon transportation, disposal, handling and storage of materials,
availability of labour, material, water, electricity, roads and uncertainty
of weather or similar physical conditions at the site, the conditions of
the ground and all other matters which may in any way affect the work
or the cost thereof under the Contract.
• No extra charge made in consequence of any misunderstanding or
incorrect information on any of these points or on the grounds of
insufficient description will be allowed.
• The contractor shall be allowed admittance to the site on the date of
commencement stated in Appendix “A”.
 General conditions of contract

18. Setting Out

• The architect shall determine the areas required for the execution of
the work.
• The Contractor shall set-out the areas of work as directed and shall be
responsible for the accuracy of the same. He shall provide all the
instruments and attendance required by the architect for checking the
work. He shall entirely at his own cost amend to the satisfaction of the
architect any error found at any stage, which may arise through
inaccurate setting.
General conditions of contract
19. Defects liability period
• Any defects, shrinkage or other faults arising from materials or
workmanship not being in accordance with the Contract, appear during
progress of work and within defects liability period stated in the
Appendix-A, these shall be corrected and made good to the architect’s
satisfaction by the Contractor at his own cost within the time limits given
by the Consultant.
 General conditions of contract
20. Termination of contract
The owner may terminate the contract at any time within a period of 15 days by
giving Contractor a written notice, if the Contractor makes default in any one or
more of the following respects, If the Contractor:
• Shall commit default of any of his obligations under the Contract or
• Fail to commence any work at site in accordance with the time prescribed.
• Fail to carry out or carry on the work or any of them to meet the schedule or
• Fail to provide at site sufficient labour for the proper and/ or timely execution of
the work or
• Fail to execute the work or any part thereof in accordance with the Contract or
• Disobey any order or instruction of the architect or
• Is negligent in carrying out the work or carrying out of work found to be
unsatisfactory by the architect.