Help regarding Agreement !!

[riturajmnit]

Hi folks,

I have finalized one contractor over reference from this forum.
We are going ahead with agreement this week.

This will be Item rate contract, where rate over specification + labour is given by contractor for every item.
Now my concern is what all clause I need to include in agreement.

Further, How much should be mobilization advance. Work order is divided in 2 parts (Civil + Finish) costing 32 + 14 lakhs.
Contractor has asked for 8%, I plan to give 2 lakh as mobilization advance.

What worries me practically is he doesnt have any office and its purely on trust. So what all precautions should i take ?
please share your expert advice.

[riturajmnit]

can anyone please help here .

[Nivas]

Include in your agreement payment terms , when you are going to pay upon what completion and quality. He need to ask payment only after completion of work after producing the bill of items completed with calculated quantity.
2 lakh is too much of mobilization advance. Ideally if he is a seasoned contractor , he needs nothing to mobilize. 10 or 20k is something that you can pay as a token advance. Percentage 8% etc are made up terms. if he needs the work he will come back.
share the item rates in the forum, so that we can help you better.