Agreenents for cotract awards

gk (Querist) 16 October 2023 This query is : Resolved
Respected Expers,
Good Morning.
We have decided to install a water purifying treatment unit for our Borewell water used for domestic purposes in our residential apartments in Kerala. We have contacted some of the local contractors through some references as well as google search. We are very new as an apartment Association who are planning to award this project to one of the contractors based on their quality or previous projects exp etc.
Now, what sort of legal formalities to be done while awarding this project to a contractor? I mean, whether it should be through a legal advisor, on stamp paper, with authorized attestation etc?
whether witnesses required to sign in such agreement? OR simply any specified format is there we need to follow? In future, in case of a dispute on their(contractor) service or materials with ref to quality or safety or such any aspects - whether due to lack of some clauses or terms and conditions in the agreement paper, "to be faced such a situation like, we are not able to go ahead legally against the contractor?
Or the consumer court or forum is unable to support us due to "lack of proper agreement?"
Simply what we should care while making such contract award agreement for any such project to safeguard ourselves
Please advise.
gk

NB: In a similar project in our town, around six lakhs rupees invested by another apartmrnts and the unit become nonfunctional soon after the installation but the Apartments were unable to take any action against the contractor...... I understand due to such some lack of proper agreements or lack of proper clauses in the agreements. This is the reason for the query since we are in need of such plant to be installed in our complex - but wish to make such agreements in proper legal way.
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Quick Summary

An apartment association in Kerala is seeking advice on the legal formalities required when awarding a contract for a water purifying treatment unit. They are new to this process and want to ensure a legally sound agreement is in place to protect them from potential disputes over quality or safety. Advice suggests inviting tenders, selecting a reputable provider, and drafting a comprehensive agreement, potentially with legal assistance, executed on stamp paper as per Kerala's regulations.

T. Kalaiselvan, Advocate (Expert) 19 October 2023
Your association should first invite tender from some service providers for this purpose.
After selecting the standard and reputed provider, you may enter into an agreement with the conditions based on the circumstance and other clauses wherein the contractor would be held liable for breach or violation of contract conditions.
If you are not able to draft the agreement you can take the assistance of a lawyer on his or her terms and get the agreement neatly drafted, get it witnessed accordingly and execute the same.

gk (Querist) 20 October 2023
Thank you very much Sir. Noted the info.
We are planning to take quotations.
Any difference on QUATATION and Tender?

P. Venu (Expert) 31 October 2023
There are no fixed norms in this context, unless the bye-laws of the Association or the law under which the Association is registered, so specify. In a practical sense, the best option is to select the contract after diligent survey of the market.

As to form of a contract, the selected contractor may have their own format. You can opt for the same after due consultation and making changes, as necessary.

In Kerala, it is mandatory that the agreement/contract is executed in Rs. 200/- stamp paper.

gk (Querist) 31 October 2023
Dear Venu Sir,
Thank you very much for the info.
Can be executed by signing both parties in the Rs.200/- stamp paper? Whether a notary or legal advisor is mandatory for the execution of the same with his signature and stamp etc?

P. Venu (Expert) 01 November 2023
There is no such legal requirement.

gk (Querist) 01 November 2023
Thank you Venu Sir
That's really nice to know.

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