Building Contract is an agreement between the property-Owner/Developers and the Building Contractor (For short ‘Contractor’) whereby all the construction and building activity is undertaken by the Contractor over the property for lawful consideration payable in monetary terms.
A building Contractor is mostly a civil engineer who is well versed in the execution of the building plans and design drawn by an Architect and RCC Designer and approved by the Building Department or appropriate Authority of the Municipal or Town Planning Office. As such the Contractor translates into reality all the building dreams and expectations, of the land owner/Developers, formulated in plans & Designs by the Architect.
This specie of contract contains the terms and conditions, concerning the building & construction operations and, agreed between the land owner/Developers. While drafting Building Contracts, like other documents i.e. Sale/ Purchase Deed or Development Agreement & Development Power Of Attorney or Agreement for Sale or issuance of the Public Notice and drawing up of Search Report and issuance of Certificate of Title, a lawyer’s skill and ability are petitioned for harmonising the rights and obligations of the owner/Developer on the one hand and of the Building Contractor on the other.
The building contract envelops within its fold the description of the work to be performed, material & labour & equipments to be used with specifications, brand, grade, type; site supervision, Changes, Alterations, and Extras, Cleanup and Trash Removal, Protection of Property and Persons, Fire Insurance With Extended Coverage, obligations of the Owner’s or Developer’s vis-à-vis the Contractor and vice versa, work schedule, price & payment schedule, Correction of Deficiencies clause, Liens and Waivers of Liens by the Contractor, termination clause, arbitration clause, warranty clause.
Building activity includes masonry-brickwork, usage of sand, cement, flooring, plasters, plumbing- pipes, taps, showers, sanitation, tiling, etc; electrical cabling and installation, water proofing, etc; all find place in the Contract.
The Building Contract to be enforceable should be properly drawn, drafted and processed in consonance with the provisions of the various enactments relating to Contract, Stamp duty and all other relevant enactments.

The various forms relating to the Building Contract can be enlisted as under:

  •      Invitation to Tenderers.
  •      General conditions of Contract.
  •      Letter of intent.
  •      Work order.
  •      Formal Building Agreement between the Owner and Contractor


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