Friday, 27 June 2014


(Bangalore property|2bhk apartments for sale in bangalore|flats|lands for sale in Bangalore)

Though apartment culture has picked up in most of the metros and a large number of people live in apartments, if option is given to the people while investing their money on residential property, a large number of people prefer to purchase plots and get the house constructed according to their taste and style instead of buying an apartment or ready built house.

However, it would be a difficult task for the owner to get his house constructed from a contractor unless every minute care is taken by him to protect his interest. The deed of construction should be a well thought over document and should contain all the terms and conditions explicitly stated. The following are the some general guidelines which may be of some help while entering into a construction contract.

Before undertaking construction of a house, the property owner has to plan out his requirements and the method he has to adopt for successful completion of construction after taking into consideration the various options available for him. He has to select a building contractor after market survey, enter into a written construction contract putting forth all the terms and conditions in an unambiguous manner which shall be signed by both the owner and the contractor. To avoid disputes and misunderstandings, doubts and confusion, the terms and conditions should be clearly mentioned in simple language in the deed of contract.The contract should be drawn up with the minute details and should be to the point. 

Basically, the terms of the contract should contain details of the parties involved, quality of the materials to be used, time frame within which the different phases of construction of the house are to be completed, schedule and mode of payment, escalation clauses, penalty terms, liability of the parties, authority for appointment of sub-contractors, if any, source of supply of construction materials, specifications of fixtures and fittings to be provided in the house, provision for inspection by the owner or his agent or representative of the progress of construction and the quality of materials used, authority who shall decide the quality of the material used, compensation, if any to be paid for the loss of life and for the body injury for the labor force while at work, arbitration clause etc.

It is the normal practice that the contractor shall submit his quotation after he goes through the specifications and the quality of materials required for construction. The quotation should clearly mention the make, brand and other particular specifications of the materials to be used. The owner should make sure that the base rates for the tiles utilized, granite, marble, lights, tubes, glass, pipes, windows, grills, basins etc are mentioned separately. It may be kept in mind that the cost of construction is normally quoted on square foot basis and the structural and working drawings prepared by the architect will be the basis of the contractor's quotations. It is better to get the quotation on item rate basis for the fittings, fixtures and furnishings.

Broadly, there are two ways of awarding the construction contract - Construction on a turn key basis and construction on the basis of a labor contract.

For construction under turnkey method, the entire construction work is assigned to the contractor /builder, including providing of fittings and fixtures and the building so constructed would be delivered by the contractor / builder to the owner only upon the total work is executed and the house is ready for occupation. The contractor / builder shall be collecting the agreed sum from the owner as per the terms of agreement at different intervals as and when the work progresses and the final installment due shall be collected at the time of handing over of the house or after a lapse of certain period after handing over of the building to the owner. Under this type of contracts, a two part contract is referable. The first part pertains to the type and quality of structure that is to be built while the second part relates to the type and quality of fittings, fixtures and furnishings to be provided by the contractor. 

There is, however, an option available to the owner to purchase the type and quality of material of his choice than agreed upon while entering into a construction contract. For example, as far as flooring is concerned, it could be granite, marble or tiles and the owner is entitled to reduction from the total contracted sum payable to the builder for the materials supplied by him. For instance, if the base rate quoted for the marble is Rs.150 per sq.ft for a 600 sq ft area, and the owner desires to choose better quality marble or wood flooring he can purchase it and then get reduction from the sum due to the contractor. He can apply a similar strategy for other items such as fittings, fixtures and furnishings.

Labor contract method 
For construction under labor contract method, a labor contract agreement is entered into between the owner and the contractor. Under this system, the property owner shall make arrangements for regular and systematic supply of all the materials required by the contractor at different stages of construction while the contractor shall utilize the material so supplied for construction of the house through his labor. This method would be preferable where high quality of construction is expected since the property owner shall take minute care to select the material of his choice for being used in the construction. Under this method, the owner will be able to get his house constructed keeping in mind his budget, needs, resources and tastes. In both the methods of contract, the property owner should be vigilant and should visit the construction site as frequently as possible to set right the deficiency if any the progress of construction.


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