Condition of contract

Overview by
Jatadhar Jha
 Conditions of contract
Following are the conditions of contract:
• Contract duration
• Engineer’s duties and responsibilities: Duties
and responsibilities of Engineer should be
clearly specified in contract.
• Payment procedure: Contractor should be
paid regularly for the completed work.
Generally 10% of the total billing amount
is retained as retention money.
 Contd
• Security deposit: If the contractor perform the
duties as per terms and conditions, security deposit is
refunded otherwise whole or part of
it will be forfeited.
• Defective work: Sometimes, contractor is levied
compensation for the defective work.
• Additions and alterations: To adjust additions,
omissions, modifications and alterations, a clause
should be there in condition of contract.
 Contd
• Price escalation: In the absence of this clause,
Contractor’s incentive is to be affected due to
rise in market price.
• Subletting: It should be clearly mentioned in
the contract whether subletting the whole or
Part of the work.
• Arbitration: Condition of contract should have
a clause for this also.