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Agreement

Construction / Works Contract Agreement

A construction works contract engaging a contractor to execute building or civil works for an owner as per approved drawings and specifications.

CONSTRUCTION / WORKS CONTRACT AGREEMENT

This Works Contract Agreement is made on [Date] between [Party A Name], residing/having office at [Address] ("Owner / Employer"), and [Party B Name], having its office at [Address] ("Contractor").

  1. Scope of Work. The Contractor shall execute [Description of Works] at [Site Address] as per the approved drawings, specifications and Bill of Quantities (BOQ), with effect from the Effective Date.
  2. Contract Value. The total contract value is Rs. [Amount], plus applicable GST, on a [Lump-sum / Item-rate] basis.
  3. Timeline. The works shall commence on [Start Date] and be completed within [Number] days/months, subject to permitted extensions.
  4. Milestone Payments. Payments shall be released against certified progress as per the agreed milestone schedule, less [Percentage]% retention.
  5. Materials & Workmanship. The Contractor shall use materials of the specified quality (ISI-marked where applicable) and ensure good workmanship as per IS codes.
  6. Statutory Compliance. The Contractor shall comply with labour, safety, EPF/ESI and municipal regulations and hold the Owner harmless against any default.
  7. Variations. Any additional or deleted work shall be valued at BOQ rates or as mutually agreed, and adjusted in the final bill.
  8. Defect Liability. The Contractor shall rectify defects free of cost during the defect liability period of [Number] months from completion.
  9. Delay Penalty. For delay attributable to the Contractor, liquidated damages of [Amount / Percentage] per [week] may be levied, subject to a cap.
  10. Governing Law & Dispute Resolution. This Agreement is governed by Indian law; disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, seated at [City].

IN WITNESS WHEREOF, the parties have signed this Works Contract Agreement on the date first written above.

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[Party A Name] (Owner)
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For [Party B Name] (Contractor)
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Witness 1
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Witness 2

Before you use it — fill in / check

  • Party 1
  • Party 2
  • Scope/consideration
  • Effective date

How to use this template

  1. Read through and replace every [bracketed] or blank placeholder with your actual details.
  2. Delete any clause that doesn't apply and add anything specific to your situation.
  3. Click Print / Save as PDF to download, or Copy text to paste into your letterhead.
  4. Get it signed / stamped / notarised as required, and keep a copy for your records.

This is a general, editable template for convenience only — not legal advice. For anything material, have a professional review it. TaxClue isn't liable for how it's used.