I am soon going to start contstruction on my plot and have already spotted a few contractors which are potentially capable of pulling this off.
It will be a labour based contract as all the materials wud be provided by me but dilemma is how to make a proper agreement and settle a schedule of payments with the contractor in order to avoid complications at any later stage.
I wud appreciate all suggestions and thankfull if anyone has a copy of such an agreement to share.
Dear Curios,
Finding a good contractor and awarding him the contract will reduce your hassle significantly throughout the work. But as you asked, getting into a documented agreement is very important and must. Here are some of the key points you should mention in labor rate agreement:
1: Scope of work under the contract from start till the end in detail.
2: Per sqft/ lumpsum rate as decided between the owner and the contractor.
3: Method of area calculation/covered area, works outside the covered area.
4: Time Period
5: Payment schedule.
Here is how you can schedule your payments:
1: Advance 10%
2: Completion of DPC 10%
3: Walls complete 20%
4: Lintel 20%
5: Plaster interior 10%
6: Plaster exterior 10%
7: Floor PCC 5%
8: Completion of tile/marble work 10%
9: Final 5%
Above schedule will be for one floor, similarly you can do for the other floor. However this schedule will not be applicable for basement contract.
Regards :)
Very valuable information, thank you Sir.
@ Team Overc’s excellent information, kindly indicate site or stamp dealer where some standard agreements could be obtained. Thanks
Thanks team overc's for ur detalied reply.It gave me and several others a rough idea of what to do but i have a few more questions so if u or anybody else can shed some light on those issues too.
Scope of work: what's normally included ?
Lumpsump rate : Whole covered area according to architect drawings and agree to a total amount or do a final calculation after the completion of the project and pay labour charges on weekly bases during construction.
Another thing,after agreeing on pr sq.ft rate.Does it makes sense to promise a reward in addition at the end of project in order to motivate contractor to do his best.
Calculating covered area : What's the best method or what are the normal practices?
How to ensure that contarctor put to work highly skilled labour throughout the whole construction process?
-Payement schedule : Double Story?
Thanks million$$$ for ur input 
Dear Curios:
Scope of work includes all the duties of a labor contractor e.g Marking for excavation, digging for foundations, preparation of foundations with excavator before starting the brick work in foundations, DPC, all the brick work till the lintel, plasters, fixation of steel/wooden chokaths and safety grills, floor PCC, roof top water proofing. Boundary walls, main gate and ramp, flooring either in marble or tile whatever you will provide him with. Somethings which are not in contractors scope and you must remember are Electric & Plumbing contracts, steel cutting, preparation of brick ballast etc
Covered areas provided by the architects are sometimes not acceptable by the builders/contractors because if you have pergolas in your front elevation, the architect will not count it in covered area, however for a contractor it definitely comes under the covered area. My advise will be to agree on a per sqft rate with the contractor and make sure to include everything outside the covered area to be done within that rate too. No separate calculations for works outside covered area like boundary walls, side passages, rear and front lawns, Main gate and ramps, concrete shades, underground water tank and septic tanks etc. Ask the contractor to give you a lumpsum per sqft rate which will include all these works. And no sense in promising a reward. A good contractor will give you a good finish if he and you both agree on a FAIR per sqft rate. Do not bargain too much otherwise the contractor might compromise in quality.
Covered areas are calculated a day after the slab pourings (lintels). Keep the measuring tape in your hand and the contractor with you. Calculate the total covered area of particular floor and that will be your final covered area of that floor. And remember you do not have to subtract the open spaces above stairs or in between the pergolas from the covered areas. These are calculated in covered area.
You will have to visit the site on continuous basis to make sure skilled labor is applied, you must have some basic knowledge about the technicalities in foundations, brick works, plasters etc. Make sure you do random checks at each stage of the work in presence of the contractors so that he remains careful throughout the work. Never ever have a blind trust in anyone including your contractor. If you are going for a labor type contract and you have to provide the material, then never put this duty of material purchase on contractors shoulders. Do it for yourself. Try to stay away from the material suppliers that the contractor will refer to you, because there is 90 % chance of a commission in between you, the supplier and the contractor.
Payment schedule is already mentioned in my first post, however I am making it easy for you :
1: Advance 10%
2: Completion of DPC 10%
3: Walls complete Ground floor 20%
4: Lintel Ground floor 20%
5: Plaster interior Ground floor 10%
6: Plaster exterior Ground floor 10%
7: Floor PCC Ground floor 5%
8: Completion of tile/marble work Ground floor 10%
9: Final Ground floor 5%
1: Advance First floor 10%
2: Walls complete First floor 20%
3: Lintel First floor 20%
4: Plaster interior First floor 10%
5: Plaster exterior First floor 10%
6: Floor PCC First floor 5%
7: Roof top tile and water proofing 10%
8: Completion of tile/marble work First floor 10%
9: Final First floor 5%
I hope this answers all the queries.
Regards
Excellent and impartial post by Team Overc’s without trying to sell his services which some posters here who deal in construction do at every opportunity.
Could you please advise the approximate rates for labour rates and labour plus material rates, i.e.
First class villa/home construction with best materials
Per Squarew Foot rate ranges from what to what?
And labour rate ranges from what to what?
Note: Sector A Phase 8 Bahria Town Rawalpindi
Khan saheb,
Labor rates ranging between 250 to 300 Rs per sqft
Turnkey rates with material for complete finishing in A grade ranging between 2100 to 2200 Rs per sqft and A+ goes beyond 2500 Rs per sqft.
Thank you so much Team Overc's. It was valuable information.
I will appreciate if you could define what is A class and A+ class roughly.