Construction contract /agreement format in tamil| Part-1|ஏமாறாமல் இருக்க இப்படி ஒப்பந்தம் செய்ங்க!

Summary

In this video, Dilip, an M.Tech structural engineer and licensed surveyor, addresses common misconceptions about construction agreements and presents an actual agreement used for a customer, with sensitive content redacted. He emphasizes the importance of a clear and detailed agreement for the safety of both the customer and the builder, outlining key points such as project cost, materials supply, payment modes, and dispute resolution. The video, sponsored by Hireandbuild, also touches on penalties for delays and responsibilities regarding additional work and payments, aiming to provide valuable insights for subscribers interested in construction costing and related topics.

Takeaways

• 👷 Dilip is an M.Tech structural engineer and licensed surveyor who posts videos on construction costing and related topics.
• 📜 The video discusses the importance of a construction agreement, which is often misunderstood to require legal team preparation.
• 🏗️ The agreement shown in the video is based on Dilip's experience and was reviewed by a lawyer before being signed by a customer.
• 🔍 A construction agreement helps to avoid unnecessary problems during construction, even with known contractors, by clarifying financial terms.
• 📝 A detailed and clear agreement is advisable for the safety of both the customer and the building contractor.
• 💰 The agreement specifies the overall project cost, materials supply, labor, and payment terms agreed upon by both parties.
• 🏦 Payment modes such as cash or cheque are outlined, with the builder providing receipts for all payments made.
• 🛠 The builder is responsible for constructing according to the plan, with any changes needing to be communicated before work completion.
• ⏱️ Delays outside the builder's control, like material unavailability during the rainy season, are not the builder's responsibility.
• 🤝 Any disputes arising between the builder and the owner should result in a decision that is fair to both parties.
• 🚫 The owner is not allowed to cancel the project midway without valid reasons, to protect the builder from potential losses.
• 💵 Penalties for delays in project completion are outlined, with the responsibility for paying them depending on the cause of the delay.
• 💧 Additional costs like water, sewage, and electricity connection charges are to be borne by the customer, not the builder.
• 🔌 The owner is responsible for fixing all electrical fittings, with the builder only providing switch points.
• 🛑 If payment is delayed by the client, causing work to stop, the builder may incur additional costs, which the owner may need to cover as a penalty.

Q & A

Who is the speaker in the video and what is his profession?

The speaker is Dilip, who is an M.Tech structural engineer and a licensed surveyor in Corporation and CMDA.

What topics does Dilip usually post videos about?

Dilip regularly posts videos on construction costing and other topics related to construction.

Why is a construction agreement necessary according to the video?

A construction agreement is necessary to avoid unnecessary problems during construction, clarify financial responsibilities, and ensure the safety and interests of both the customer and the building contractor.

What are some misconceptions about the construction agreement mentioned in the video?

Some misconceptions include the belief that the agreement must be made by a legal team, which is not necessarily the case as the agreement in the video was prepared based on the speaker's experience.

What is the importance of having a detailed agreement in construction?

A detailed agreement helps to avoid confusion and disputes related to money and work responsibilities, ensuring clear communication and expectations between the owner and the builder.

What is the significance of the first page of the agreement being printed on stamp paper?

The first page being printed on stamp paper is a legal requirement in some jurisdictions, indicating the formal and binding nature of the agreement.

What are the key points included in the construction agreement as per the video?

Key points include the names and addresses of the owner and builder, the overall cost of the project, the materials and labor responsibilities, payment terms, project completion timeline, and dispute resolution.

How does the agreement address payment and receipts?

The agreement specifies that the owner can pay by cash or cheque, and the builder is responsible for providing a receipt for each payment made.

What is the agreement's stance on changes to the construction plan?

The agreement states that any changes to the construction plan should be communicated by the owner before the work is completed to avoid additional charges for the builder.

How does the agreement handle delays in construction?

The agreement includes clauses that specify the builder is not responsible for delays beyond their control, such as natural calamities, but must complete the project on time if payments are received on time. Penalties for delays due to the builder's fault are also mentioned.

What are the responsibilities of the owner regarding electrical fittings and additional costs?

The owner is responsible for fixing all electrical fittings such as lights and fans, and for covering additional costs incurred by the builder due to delayed payments, such as labor stay and food expenses.

What is the policy on project cancellation as per the agreement?

The agreement states that the owner cannot cancel the project midway without valid reasons, as it would result in a significant loss for the builder. However, the customer has the right to stop the work if the builder's work is poor.

How does the agreement address disputes between the builder and the owner?

The agreement mentions that any disputes should be resolved in a way that is fair and justifiable to both the builder and the owner.

What is the role of Hireandbuild in the video?

Hireandbuild is the sponsor of the video, offering a 15-year warranty for construction, over 200 quality checks, and timely project delivery without cost overruns.

Outlines

00:00

📝 Introduction to Construction Agreements

Dilip, an M.Tech structural engineer and licensed surveyor, introduces the topic of construction agreements, which are crucial for avoiding disputes between customers and builders. He clarifies misconceptions about the necessity of legal involvement and presents an actual agreement used for a customer, with sensitive parts redacted. The agreement, vetted by a lawyer, emphasizes the importance of a detailed contract for both safety and clarity in construction projects, even when working with known contractors. It outlines the roles, responsibilities, and mutual benefits of having a construction agreement in place.

05:05

🏗️ Detailed Terms of Construction Agreement

The second paragraph delves into the specifics of the construction agreement, starting with the formalities of using a stamp paper and identifying the parties involved as 'owner' and 'builder'. It outlines the project's total cost, materials supply, labor, and agreed-upon price, including payment modes and receipts. The agreement also addresses the owner's right to visit the site, the builder's adherence to the plan, and the implications of changes requested post-completion. It discusses the builder's liability for delays not within their control and the customer's responsibility for timely payments to avoid project halts. The paragraph also covers penalties for untimely completion and additional costs incurred by the customer due to delays, as well as the division of responsibilities for utilities connections and electrical fittings. It concludes with a note on penalties for delayed payments from the client's side and a teaser for the continuation of the topic in a subsequent video.

Keywords

💡M.Tech structural engineer

An M.Tech structural engineer is a postgraduate professional specializing in the analysis and design of structures to withstand various loads and forces. In the video, Dilip identifies himself as such, indicating his expertise in the field of construction which lends credibility to the content he shares about construction agreements.

💡Licensed surveyor

A licensed surveyor is a professional who has the legal authority to measure and map land boundaries and provide data for legal, construction, and other purposes. In the script, Dilip mentions being a licensed surveyor in Corporation and CMDA, highlighting his qualifications and expertise in land and construction-related matters.

💡Construction agreement

A construction agreement is a legal document that outlines the terms and conditions between a customer (or owner) and a builder or contractor for a construction project. The video focuses on this topic, emphasizing its importance for avoiding disputes and ensuring project clarity and completion.

💡Misconceptions

Misconceptions refer to incorrect or unfounded beliefs about a subject. The script mentions that there are misconceptions about construction agreements, such as the belief that they must be made by a legal team, which the video aims to clarify.

💡Legal team

A legal team typically consists of lawyers and other legal professionals who provide advice and services on legal matters. The script dispels the misconception that a legal team is necessary for creating a construction agreement, showing that it can be done based on experience and then reviewed by a lawyer.

💡Safety

In the context of the video, 'safety' refers to the protection of interests for both the customer and the building contractor. The construction agreement is made to ensure that both parties are safeguarded from potential misunderstandings and financial risks.

💡Mode of payment

Mode of payment refers to the method by which money is transferred from the payer to the payee. The script specifies that the owner can pay the builder by cash or cheque, and the builder is required to provide a receipt for the payment, which is crucial for record-keeping and transparency.

💡Penalty

A penalty in the context of a construction agreement is a financial charge imposed for failing to meet certain conditions or deadlines. The script discusses penalties for delays in project completion due to the builder's可控 factors, as well as for the owner's cancellation of the project.

💡Dispute resolution

Dispute resolution refers to the process of settling disagreements between parties. The script mentions that any disputes arising between the builder and the owner should be resolved in a way that is fair to both parties, which is an important aspect of the construction agreement.

💡Project completion

Project completion refers to the successful end of a construction project according to the agreed-upon timeline and specifications. The script emphasizes the importance of the builder completing the project on time and the consequences of delays, including penalties.

💡Sponsorship

Sponsorship in this context is a promotional arrangement where a company, Hireandbuild in the script, supports the video content in exchange for advertising. The script mentions the benefits of choosing Hireandbuild for construction, such as a 15-year warranty and quality checks.

💡Quality check

A quality check is a process to ensure that work meets certain standards or requirements. The script mentions that Hireandbuild performs over 200 quality checks to ensure the project is delivered on time without cost overruns, which is a selling point for their services.

💡Cost overrun

A cost overrun occurs when the actual cost of a project exceeds its budget. The script assures that with Hireandbuild, there will be no cost overruns, which is a significant advantage for customers looking to avoid unexpected expenses.

Highlights

Introduction by Dilip, an M.Tech structural engineer and licensed surveyor.

The video addresses common misconceptions about construction agreements.

This construction agreement was not prepared by a legal team but was reviewed by a lawyer.

The agreement aims to avoid unnecessary problems during construction.

A clear and detailed agreement is advisable to prevent confusion and disputes.

Construction agreements protect both the customer and the contractor.

The agreement includes specific points that might not suit everyone but aims to justify both parties.

The first page of the agreement must be printed on stamp paper.

Details like customer name, age, father's name, and address are included.

The builder's company name and address are also detailed.

Overall project cost and payment modes are specified.

Clauses ensure the builder is not liable for delays beyond their control.

The agreement includes a clause for penalty if the builder delays the project without valid reasons.

It specifies that charges for water, sewage, and electricity connections are the customer's responsibility.

The builder is only responsible for providing switch points, not electrical fittings.

The video is sponsored by Hireandbuild, offering a 15-year warranty and over 200 quality checks.

The video ends with a teaser for part 2, to be uploaded next week.

Transcripts

Hello Everyone, This is Dilip and I am an M.Tech structural engineer. I am also a licensed surveyor in Corporation and CMDA.

Regularly we are posting videos on construction costing and other topics related to construction, I hope it's useful for our subscribers.

Construction agreement format is one of the most requested topics from our subscribers.

There are so many misconceptions related to the agreement like it has to be made by the legal team etc.

The one I am going to show in this video is an actual agreement done for a customer. Some sensitive content is hidden.

This agreement is not prepared by a legal team, it's made with our own experience but the customer has checked this with his lawyer and signed the agreement.

To avoid unnecessary problems during construction we have to make a construction agreement.

Even if the building contractor is someone you know we can avoid problems and confusions related to money by drafting a detailed agreement.

Making a clear and detailed agreement is really advisable

Construction agreement is made for the safety of both customer and also the building contractor

Few points in this agreement may be not suitable for some customer or some building contractors however the construction agreement should be made in a way that it justifies both builder and also the customer.

Let's get into the video now.

This video is sponsored by Hireandbuild. You get 15 years warranty for construction with us.

We do 200+ quality check and deliver the project on time without any cost overrun. For more info kindly visit www.hireandbuild.com

The first page must be printed on stamp paper

The first point tells about the customer name, age, father name and address and hereinafter will be called as owner

Next is for the contractor this point tells the company name, address and hereinafter will be called as the builder

Other points can be taken in green color legal sheet

The next point is about the overall cost of the project for example 30 lakhs or 40 lakhs is mentioned here.

The third point is builder will supply all the materials and get the work done with labour

The next point is that the owner and the builder has agreed to the price mentioned with the material specifications mentioned below

It also says the owner will pay the cost mentioned and also builder will complete the project with this cost.

The next point is about the mode of payment done by the client, the owner can pay cash or cheque and for the payment done builder will give the receipt for the payment done.

The next point mentions that the owner will come and visit the construction site frequently

Builder will construct as per the plan, if there is any changes that need to be done should be told by the owner before finishing the work. The builder will not be responsible for the additional work that has to be done.

Even if the owner is not available any of his relatives can visit the construction site and say changes. Because If the changes are told after the work is done it will incur additional charges for the builder.

The next point mentions builder is not liable or responsible for any delay that is not in the builder's hand like bricks won't be available during the rainy season etc

This point mentions that the builder will complete the project on time if the payment is received by the builder on time from the owner. This clause is for the safety of the customer.

There shouldn't be any delays from the builder side. Few builders will take money from one site and spend it on another construction site. For such things, this point is mentioned.

This point mentions if there arises any dispute between the builder and the owner, the final decision should justify both the builder and the owner.

The next point states that the owner cannot cancel this project in the middle

Sometimes the builder will do the work as per the plan but any other builder or relatives of the customer will say they can do it for a cheaper price and the owner might change the builder.

I am not saying this will happen all the time but it happens sometimes. If this happens that will be a huge loss for the builder so if the work is going as per the schedule and the owner shouldn't stop the work

If the builder work is poor, the customer can stop the work at any point in time, he has the rights to do it but not for any reasons like I mentioned before

This point is very important for the customer. Many customers face this problem-time delay in the project completion.

This point is to avoid this delay if the builder doesn't complete within the time frame mentioned he should be paying a penalty for the delay every month

As I told you earlier if the delay happens with respect to the things he can control this penalty must be paid by the builder to the customer

but if it happens due to delays like natural calamity or like this covid lockdown situations. For these kinds of delays, the builder won't take responsibilities

If the builder stops work on this project and works for other projects or without any reason if he doesn't does work at the site, this penalty has to be paid by the builder to the client.

If the builder doesn't complete within the time mentioned monthly customer will also be paying rent or he might have got a loan, for which EMI has to be paid by the customer

These are some additional costs or loss for the customer too so the penalty has to be paid by the builder

The next point says that the charges for water connection, sewage connection, eb connection charges have to be paid by the customer, these charges will not be paid by the builder

Next point says that the owner must fix all the electrical fittings by himself like lights, fans etc. Builder will only provide only the switch points.

This point favours the builder actually, sometimes builder will complete the project milestone and there will be some delay for the next stage of payment from the client-side because of this work will stop at the construction site

Builder will have the labours stay at construction site if the work stops due to delayed payment builder has to pay extra for labour stay and also for their food.

This will be a loss for the builder so a minimal cost to cover this loss of the builder can be paid by the owner. This minimal cost is mentioned as a penalty for the owner.

If you have seen this video till now I hope you liked our video, there are so many useful information that has to be shared on this topic

It will be a lengthy video if I share everything in this so have made this into two parts. This week we have uploaded part-1 next week we will upload part-2

Stay tuned and keep watching our videos, Thank you!