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anand das (service)     02 June 2011

Work Order -- Agreement

While alloting a work to the contractor, whether 'WORK ORDER'  should be issued to the contractor or agreement should be executed with contractor ?

or whether 'WORK ORDER' shopuld be issued first and then a detailed agreement should be executed with the contractor?



 2 Replies

sanjay kumar (BE/ LLM in Corporate Laws)     02 June 2011

Agreements are generally signed with the contractor when the duration of the contract is long and there are chances that many things may change(eg taxes, duties, prices etc ) during the execution of the contract. In order to take care that such disputes do not arise and a legal remedy is always available to both the parties, agreements are signed. However, signing of an agreement may take time because it is to be legally vetted in detail ensuring that all the terms and conditions of the original tender, post-tender closing clarifications, conditions, price negotiations etc etc are exactly incoporated in the agreement. This may take one or two months

In order to start the work immediately, a Work-order is generally issued by the client to the contractor so that the contractor can mobilise, order material etc. The terms and conditions of the Work-order are the same as that of agreement, however, any mistake, omissions etc  detected in the Work-order can be corrected at agreement stage.

1 Like

prabhakar singh (advocate)     02 June 2011

Not only what Mr. Sanjay says, cases of work order may  also arise when the work is in progress and some thing desirable on spot has not been covered by the contract,it shall be got completed by work order.In many works where a tender is not desirable they are got executed by work orders.Work orders may be oral as well as written.

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