Agreement with builders.

Chandan Garg (Querist) 16 August 2008 This query is : Resolved
In our company we hire the builders to construct housing, big projects , flats and all that.

can we make some agreement with them in which they can give us guarantee against the defects for next 4-5 years
or
How can we make some agreement with them,if in case the building get some defect or collapse even after 4-5 years they can be held responsible.

if yes than please provide the format.

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Srinivas.B.S.S.T (Expert) 16 August 2008
You can put some clauses with regard to quality of the material to be used and other conditions in the contruction agreement itself. You can also take an undertaking from the builder that he will be responsible for the defects if any found to be occured due to low quality of the material or fault in design of the structure. However the builder cannot be made liable for natural calamaties. For further clarification you can contact me at s_bsst@yahoo.con or can call me at 9440120259

Guest (Expert) 16 August 2008
These kind of covenants are available in almost all government contracts for divil engineering. Most of the tender forms contain these covenants.

You candraft those conditions yourself and post it here so that we can advice on its completeness.

Chandan Garg (Querist) 21 August 2008
Thanks everybody

Chandan Garg (Querist) 21 August 2008

if some body have some more suggestion are welcom

H. S. Thukral (Expert) 29 August 2008
We have built 120 flats in a group housing society and I have been actively involved in the project. I therefore would try to help you Architects are appointed to supervise the work of the contractor and practically are responsible for preparation of structural drawings and making them available to the contractor, supervising the work personally and through their representative or a site engineer, issuance of interim certificate of payment and final certificate of completion. taking measurement of work. Apply and gettig approvals of drawings and getting completion certificate.
The contractor duties are to work according to design, specification quality provided for in the contract to the entire satisfaction of the employer/ Architect. Now question arises who would be responsible for the defects noticed during the construction or afterwards. If the defects are noticed during the progress of work, contractor is obliged to remove them and if the defects are detected afterwards, a defect liability period is provided in the contract and a security deposit by the contractor ensures the removal of defects. However if the defects are discovered after the defect liability period. the contractor shall be liable for it and limitation shall start from the date of discovery. If the defects relates to structural drawings. bad quality of cement and steel where the same has not been noticed by the Architect, the liability shall be solely pinned on Architect. all the conditions in relation to contract are incorporated in tender form which when accepted are given shape of an agreement. A separate agreement is signed with the Architects detailing their functions and liability. These formats are common and can be obtained from any PWD/CPWD/ Municipal Corpn etc. Arbitration clause are incorporated to resolve the dispute but as an employer you are a consumer under the CP Act and can take recourse to that notwithstanding arbitration clause.
Most of the disputes are in relation to extra/altered work and price of the same. A clasue therefore as to performance of such work should be carefully drafted and provided in the contract.

Agreement with builders.

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