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Jayanta Bandyopadhyay   28 April 2022

Definition of composite supply of works contract

We will place order for civil, plumbing,sanitary ,painting of guest house. Is it a composite supply of works contract. What sort of docs we will ask from the recipient of this Purchase Order.. it us West Bengal.

Please guide.


 5 Replies

Advocate Y.K. Mehrotra (Advocate)     02 May 2022

Hello Sir

A works contract is essentially a contract of service which may also involve the supply of goods. A composite supply of both services and goods, with the service element being dominant in the contract between parties.

Any contract needs to be signed by both the parties and it is the term of that signed contract that governs the works done. Before placing a purchase order you can demand the agreed terms of the works contract so as to ensure no dispute arises.

In case you need my assistance you can let me know the mode of communication.

Jayanta Bandyopadhyay   02 May 2022

That contractor will have PO worth Rs.10 Lakhs. But not having a valid trade licence+PF+ESI + Group insurance for employees.

Can a big company award this PO to such unorganized Civil Contractor in view of many legal requirements.

Please guide.

Advocate Y.K. Mehrotra (Advocate)     02 May 2022

If I understand this correctly you are asking whether the contractor can white label in the name of big company?

Jayanta Bandyopadhyay   02 May 2022



My query is that when a commercial interior designer farm is given a works contract order for civil, plumbing,sanitary work at Co Guest House, what are legal obligation say Trade/labour license, PF& ESI regn. Can they bypass all these to get PO from us? As we may fall in to trap, if they falter on compliance scorecard,,say any accident, no PF  and one goes to Court. 

CLRA Act may bind us.

Kindly guide

Advocate Y.K. Mehrotra (Advocate)     02 May 2022


No license is required for commercial interior designer in India. So if you want to secure yourself along with a purchase order you shall draft a well written contract securing your rights in case of a default.

I know how to drafting a contract is a tricky thing, It took me enough time to perfect this art of contract drafting. However you can hire anyone you want but do not use copy paste contracts available on the internet.

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