Labor contract rate and agreement format

[rajeshrao]

Hi All,

I am starting my house construction(G + 2) in BSK 5th stage in next month and decided to go for labor contract.
contractor is quoting 30000 per chadra(roof to roof) for all civil work excluding

1) foundation digging and mud filling
2) elevation
3) mesh works which drops from roof

it will be great if you can comment on :

Quotation rate of 30000 and please share the labor contract agreement format.

Thanks
Rajesh

[kvanbu]

Rate excluding the above items seems to be very high. Around 26000 (+/- 1000) is the reasonable amount.

[karjagir]

Rajesh,

I started my house construction on labour contract in May 2015 and I paid 26500 per chadra. My contractor says current rates are about 30000. Having said that, please inquire in a couple of other places before you finalize your decision.

Thanks,
Karthik

[rajeshrao]

Hi Karthik,

Thanks for your response.

i will start negotiation let us see how contractor reacts for that.

Please share the contract agreement format if you have any , so that i can leverage that.
what was the payment mode you have used ? is it weekly (based on number of people worked in that week ) or stage mode.

Thanks
Rajesh A S

[Chida_gs]

Hi,

I got this reference agreement document from this forum only, please use this and modify accordingly as per your needs.

Ensure that all Exclusions and Inclusions should be covered in the agreement, Payment schedule should be discussed between you and contractor very clearly.

[rajeshrao]

Hi Chida_gs,

I have gone through this document, it seems its designed for the material(full)contract not for the labor contract. Anyways let me try to tailor this to math my requirements.

Thanks
Rajesh

[Chida_gs]

Yes, this is for material contract, Please modify accordingly as I mentioned.

If other members have the document, requesting to share it for benefits to all

[ausraja]

Rates differ but quality and behaviours matters. The majority of contractors ask for material contract only and not many will be okay for labour as profits are less. If you get a good labour contractor then you shouldn't be looking at saving a few thousands.

[karjagir]

Rajesh,

To be honest, I never did any formal agreement with my contractor. He basically wrote 26500 per chadra in a page of his dairy and he had initially said that watchman salary, digging charges and an additional side elevation (I have a corner site) will be extra and he has stuck to his word. Payments were weekly depending on the amount of work done. For e.g., if there is moulding work done in a week, they will generally charge more. I would recommend you have a rough estimate of how much labor would cost you in total and then monitor weekly payments accordingly

Always hold some payment (maybe about 75k to 1 lakh) and pay that only when your entire house is complete and you have moved in

I agree with ausraja. Even if you negotiate for 500 rupees or 1k less per chadra, you will probably save about 25k-30k max I guess. So, if you think the contractor will do a good job, go with him. You will save loads of money if you go for labor contract (You will spend more time of course)

Karthik

[rajeshrao]

Hi karthik,

Thanks a lot for your suggestions. Can i get your contact number so that i can talk to you to get more info.
my mail id is : rao.rajesh2@gmail.com

Thanks
Rajesh