BHAIRAHAWA ENGINEERING AND

BUILDERS PVT.LTD

CORE CONTRACT DOCUMENTS

CLIENT:…………..

ASHOJ ,22,2076
[COMPANY NAME]
[Company address]
 Memorandum of Understanding

CONSTRUCTION CONTRACT

This written understanding has been reached between M/S ………………….(hereinafter

referred to as the First Party) and ....................................., the owner of the land plot on
which the construction of the building is proposed (hereinafter referred to as the Second
Party) to serve as a complete package deal, for the complete construction of a residential
building , this document has been prepared as Memorandum of Understanding (MOU)
between them. For the purpose of this MOU, the First and the Second Party hereinafter
are collectively referred to as the parties.

General

1- The First Party is entering in this MOU to act as the Designer and Contractor for the
above mentioned Construction Project.

2- The Second Party intends to construct a Residential building at ...................,

Nepal.

3- The First Party will be responsible to carry out and look after the agreed construction
work as per the proposed plan, schedule and approved drawings of the building by
the government authority.

4- The First Party will carry out the entire construction work of the proposed building
including the additional works mentioned as per the specifications submitted by it
for the Contract on the delivery mode of a turnkey project addressing all
appropriate concerns of the Second Party or any technical supervisor employed by
it for monitoring the progress and quality of the proposed work.

5- Minor changes or modifications in the specifications of any construction and/or

finishing work may be entertained as per need or demand during the operation of
the project through mutual consent of the parties. However, any additional work
 not mentioned in this agreement will be considered as extra work and will be paid
on mutually agreed cost. However, a detail estimate will be sent to the client for
approval before starting any additional works.

6- The completion period of the Project is ....... months from the date of demarcation
of site for the proposed building construction. However, one month’s grace period
may be permissible only if the work couldn’t move ahead due to any adverse or
unavoidable circumstances beyond the Contractor’s control.

7- Getting service connections from the concerned agencies for water supply, public
sewerage, telephone and electricity lines for use upon completion of the building
will be the responsibility of the Second Party.

REMUNERATION:

1- The Second Party agrees to pay the estimated net total amount of
........................................................................ ) with specifications of finishing cost
rates categorized by major components of the proposed construction work. The
payments to the Contractor will be made on a mutually agreed modality of
payment. The financial liability for any obligations associated with this transaction
under the prevalent laws of the land will be the responsibility of the First Party as
Contractor of the Construction Project.

The Responsibilities of the Contractor:

The Contractor will be responsible for the following items in general:

1) Carrying out with design maps all items of the finishing works on sanitary and
electrical fixtures and fittings including the additional works of construction as
agreed in accordance with the specifications mentioned. Providing all tools,
materials, labors, supporting materials and equipments, scaffoldings, shuttering,
woods finishing materials etc. for the smooth conduct of the construction work.

2) The contractor will be responsible for construction of the building according to the
design and drawings provided by the client and approved by the concerned
authority.
3) Timely procurement of the various kinds of necessary construction materials in
required quantity and ensuring their quality.

During Construction Stage:

1- Execution and achievement of all works mentioned in the drawings (and/or)

specification and as per contract condition during construction period.

2- Execution of all checks and tests (Plumbing and Electrical Tests) to confirm that the
quality of the used materials is compatible with the approved specification and drawing
and the carried out works are properly conducted as per standard norms and rules
approved and practiced in such works.

3-Ensure during the course of construction that the work progress of the project is
consistent with the planned schedule for its completion.

4- Coordinate the works of sub-contractors as per need to sub-let them for their
specialized services and finishing ensuring the required quality of work.

5- Supervise and follow up of the sub-contractor work ensuring quality and progress
of the Project to meet the schedule for its completion on time.

At Completion and Handing Over:

1- Verify that all required work has been finished according to the fulfillment of the
agreed specifications to the satisfaction of the Client (the Second Party).

2- Demobilize the site both internally and externally from any residuals resulted during
the conduct of the construction works and shifting theses residuals to the proposed
locations outside the site.

3- Checking and operating all systems and services which have been fixed during the
operation of the proposed construction work.
 4- Confirm that construction of the proposed building with all specified items covered
under the contract agreement is duly completed and is ready for handover to be
resided by the owner.

Miscellaneous

This document with its annexes and/or attachments constitutes the complete agreement
between the parties. This agreement will be binding upon the parties for the entire period
of the project till its completion and handover. However, in the event of any problems
arising in course of the project operation owing to various omissions and commissions that
have remained unknowingly in this document, the parties themselves may try to sort them
out through dialogue and consensus or through mutually agreed arbitration. In case of
problems not settled through any of these measures, provisions of the contract law may
prevail. The parties have signed this document in witness of the following two persons on

the date mentioned below.

Signed by mr……………..
On behalf and as designated by
BHAIRAHAWA
ENGINEERING AND
BUILDERS PVT.LTD

Signed by mr………………
On behalf of owner of the land plot
in construction will be performed.