CONSTRUCTION AGREEMENT

This AGREEMENT is made at Lahore on this first day of June two thousand fifteen (01-062015) hereinafter referred to as the (Agreement)
BETWEEN
SHAUKAT KHANUM MEMORIAL TRUST, having its project Shaukat Khanum Memorial
Cancer Hospital and Research Centre (SKMCH&RC or the Hospital), a charitable
organization registered under the Societies Registration Act, 1860 having its head office at 7-A,
Block R-3, M.A. Johar Town, Lahore (hereinafter referred to as SKMT or Client, which
expression shall include its successors in interest, legal representative and assign) of the First
Part.
AND
Ejaz Builders & Developers through ------------ situated at office No.13, First Floor, Tariq
Centre, Block H-3, M.A. Johor Town, Lahore hereinafter referred to as the Contractor (which
expression shall also include its successors in interest, legal representative and assigns) of the
other Part.
SKMT and Contractor shall hereinafter individually be referred to as the Party and
collectively the Parties where the context so requires.
WHEREAS
1. SKMT is desirous that certain Works viz construction of Grey structure/building at Plot
No. 05, Block B, Phase-1. Iqbal Avenue Co-operative Housing Society, Johor town as per
Drawings & Bill of Quantities detailed in Annexure-1 & 11 of this Agreement, herein
referred to as the Work should be executed by the Contractor.
2. The Contractor warrants that it has all the necessary skills, instruments, and
labor/personnel, to carry out the aforesaid Work, the scope of which is detailed in
various provisions of this Agreement.
3. The Contractor has offered its Services to SKMT for the consideration provided under
this Agreement and the SKMT has duly accepted the same on the terms and conditions
stated herein below.
NOW THEREFORE in consideration of mutual benefits to be derived from this Agreement and
for the terms and conditions stated herein, the Contractor and SKMT hereto agree as follows:
NOW THEREFORE, THIS DEED WITNESSETH AS UNDER: -

1.

WORK COMPLETION TIME

1.1

The Contractor has agreed to complete the Works within three (03) months from the date
of signing of this agreement.

2.

RETENTION MONEY

2.1

The Retention money/security deposit is limited to 3% (Three Percent) of the contract

price but sum equal to 5% (Ten percent) will be deducted from each of the Contractors
running bill/interim payments till 3% (Three percent) Limit of Retention Money is
reached and upon 100% completion of the Grey structure works and the expiration of the
period of maintenance for the Works (if any), the retention money shall become due and
payable to the Contractor. The retention money shall be released upon the issuance of
final completion certificate from the engineer in charge.

3.

SUPPLY OF MATERIALS

3.1

No materials, (except water and electricity), required for execution of the work, shall be
supplied or arranged by SKMT. It shall be the responsibility of the Contractor to procure
all materials at its own cost required for the timely completion of the Works. Electricity
and water supply shall be provided by the SKMT at site.

3.2

Those items which have not reflected / described in the attached B.O.Q will be paid
separately on agreed approved rates by the Engineer in-charge.

4.

ESCALATION

4.1

No escalation, either due to adjustment for labor charges, fluctuation in prices of

specified materials or any other direct or indirect escalation shall be provided to the
Contractor at any stage of the work by the SKMT.

5.

LIQUIDATED DAMAGES FOR DELAY

5.1

Liquidated Damages for delays attributable to Contractors sluggishness shall be Rs.

10,000/- (Ten Thousand only) per day up to a maximum of 10% of the contract sum.

6.

CONSTRUCTION SCHEDULE

6.1

The Contactor shall furnish a construction schedule showing the strategy of

accomplishing the works within the contract time.

7.

WORK TO BE DONE TO THE SATISFACTION OF THE ENGINEER.

7.1

The Contractor shall be bound to execute the work strictly in accordance with the
specifications, drawings and instructions of the Engineer in charge & to the entire
satisfaction of the SKMT.

7.2

Mr. M. Jameel Civil supervisor Project Office of Shaukat Khanum Memorial Cancer
Hospital and Research Centre, Lahore shall be Engineer In charge and it will be his
responsibility to accept only the best quality of workmanship. If any part of
work/Material is found bad or below standard in quality or workmanship, the said work
on being pointed out by the Engineer In-charge, shall be demolished, rectified/replaced
by the Contractor at the Contractors cost.

7.3

In case of unsatisfactory performance, unreasonable delay or default on the part of the

Contractor, the engineer In charge shall give a notice to the Contractor to rectify the
defect or take other measures for speeding up the work and in case the needful as
required is not done within a period to specified the client shall be entitled to employ or
engage some other Contractor for completion of works and all expenses incurred shall be
recovered from the bill & securities of the Contractor

7.4

If the Contractor is dissatisfied with any direction/decision of the Engineer In-charge the
Contractor may file a representation with CEO of Shaukat Khanum Memorial Cancer
Hospital and Research Centre, Lahore.

8.

CARE OF WORKS

8.1

The Contractor shall, from the commencement to the completion of the Works, take full
responsibility for the care thereof and of all Temporary Works and in case any damage,
loss or injury shall happen to the Works or to any part thereof or to any temporary shall at
his own cost replace, repair and make good the same so that, at completion, the Works
shall be in good order and condition and in conformity in every respect with the
requirements of the Contract and the Engineers instructions.

9.
9.1

10.
10.1

11.
11.1

12.
12.1

13.
13.1

INDEMNIFICATION
The Contractor shall indemnify and keep indemnified SKMT against all losses and
claims for injuries or damage to any person or any property whatsoever which may arise
out or in consequence of the performance of the Contractor under the Contract.

COMPLIANCE TO LABOUR LAWS

The Contractor shall conform and comply in all respects with the provisions of all laws,
rules, regulations, bye-laws or orders of any government or other authority, whether
federal, provincial, Municipal or local, from time to time in force, which may be
applicable to the Works or any temporary Works and shall give all notices and pay all
fees required thereby and shall indemnify and keep SKMT indemnified against all
liabilities and penalties arising there under.

INTERFERENCE WITH UTILITIES

The Contractor shall at his own cost make necessary arrangements and take suitable
precautions and perform any incidental work required for the protection of and
avoidance of interference with power-transmission, telegraph, telephone, water-supply,
drainage, sewerage and natural gas lines and other utilities that may be affected by his
operations during performance of the Contract and shall keep SKMT its governors,
employees or directors harmless and indemnified against and in respect of all claims,
demands, proceedings, damages, costs charges and expenses whatsoever arising out of
or in relation to any such interference.
SITE TO BE KEPT CLEAR OF OBSTRUCTION
The Contractor shall at all times keep the site free from obstruction and shall at any time
if directed by the Engineer remove any constructional plant and surplus materials and
clear away and remove from the Site any wreckage or rubbish temporary Works no
longer required.

CLEARANCE OF SITE ON COMPLETION

On the completion of the Works, the Contractor shall clear away and remove from the
Site all constructional plant, temporary Works, surplus materials, wreckage and rubbish
of every kind and shall leave the whole of the Site and the Works clean and in
workmanlike condition and in a state to the satisfaction of the Engineer.

14.
14.1

EMPLOYMENT AND REPATRIATION OF LABOUR

The Contractor shall make his own arrangements for recruitment, employment,
supervision, transport, accommodation, feeding, repatriation and all other matters
whatsoever concerning the provision of the labor and supervisory staff. It is clearly
understood and agreed between that in performance of Contract the labor provided by
the Contractor shall act solely as the employees of the Contractor shall always remain
under the management, control and supervision of the Contractor. Moreover, under no
circumstances shall the Contractors personnel or labor be regarded as employee of
SKMT and there shall be no employer /employees relationship between them and
SKMT.

15.

SAFETY

15.1

The Contractor shall provide protective equipment and materials essential for the safety
and protection of all his labor and supervisory staff and takes full responsibility for the
adequacy stability and safety of all site operation and methods of construction.

16.

ACCIDENT

16.1

All accidents on Site or the Works shall be promptly reported by the Contractor to the
authorities concerned under intimation to the SKMT and Engineer.

17.

PROHIBITION OF CHILD LABOUR

17.1

The Contractor shall ensure that no child labor is allowed during the course of contract
and rules/law/guidelines/instructions regarding child labor shall be duly complied with.
Any penalty (ies) levied by the concern authorities due to violation of this clause by the
Contractor shall be borne by the Contractor.

18.

QUALITY OF MATERIALS AND WORKMANSHIP.

18.1

All materials and workmanship provided by the Contractor for execution of the Works
shall be in accordance with ASTM or BS Standards and in according with the Engineers
instruction and shall be subjected from time to time to such tests, at such places and at
such items as the Engineer may direct.

19.

EXAMINATION OF WORK BEFORE COVERING-UP

19.1

No work shall be covered up or put out of view without the approval of the Engineer. In
case of default on the part of the Contractor in carrying out such order SKMT shall be
entitled to employ and pay other persons to carry out the same and all expenses,
consequent thereon or incidental thereto shall be borne by the Contractor and shall be
recovered from him by SKMT or may be deducted by SKMT from any moneys due or
which may become due to the Contractor.

20.

FINAL COMPLETION CERTIFICATE OF WORKS

20.1

As soon as in the opinion of the Engineer the Works shall have been finally completed
and shall have satisfactorily passed any final test that may be prescribed by the Contract
and upon expiration of defect liability period, the Engineer in charge shall, on receiving a
written request by the Contractor, issue a Final Completion Certificate in respect of the
Work.

21.

CONTRACTOR NOT TO VARY WORKS

21.1

The Contractor shall not make any variation in the Works except in accordance with a
written variation order of Engineer.

22.

PAYMENT OF TAXES AND DUTIES

22.1

The Contractor shall be responsible for the payment of all applicable taxes including but
not limited to income tax applicable at the time of signing of this agreement or levied
thereafter, on or in relation to his income arising out of the Contract and the rate and
prices stated in the priced Bills of Quantities shall be deemed to cover all such taxes. The
payments to the Contractor shall be subjected to all applicable withholding taxes.

23.

WORKS TO BE MEASURED

23.1

The quantities set out in the Bill of Quantities are the estimated quantities of the Works
but they are not to be taken as the actual and correct quantities of the Works executed by
the Contractor in fulfillment of his obligations under the Contract. The Engineer shall

ascertain and determine by measurement, the value of work done in accordance with the
Contract.

24.

RUNNING BILLS & PAYMENTS

24.1

The Contractor shall submit to the Engineer an Interim payment / running bill request
containing a statement in such form as the Engineer may from time to time prescribe
showing the amounts of work to which the Contractor may consider himself entitled up to
the date of the request and the Engineer shall after examining each interim
payment/running bill request, certify the amount of payment. The payment against
running bills after approval by the engineer In-charge will be released within 7 days
ordinarily after deduction of applicable taxes.

25.

CONTRACT PRICE

25.1

The Total Contract Price of the works based on the rates and the prices quoted by the
Contractor in the Bill of Quantities shall be Rs, 12,840,228/- (Rupees Twelve Million
Eight Hundred Forty Thousand Two Hundred Twenty Eight Only).

26.

SKMTs LIABILITY

26.1

The SKMT shall not be liable to the Contractor for any matter or thing arising out of or in
connection with the Contract or the execution of the Works unless the Contractor shall
have made a claim in writing within ten days of its arising.

27.

DEFECT LIABILITY PERIOD

27.1

The contractor shall be responsible for making good any defect in the work for ninety
(90) days from the date of issuance of taking over certificate. The work shall be taken
over by the SKMT when they have been completed in accordance with the terms of
contract and to the satisfaction of the Engineer In charge. The contractor shall apply for
the certificate to the engineer in charge when in the contractors opinion, the work is
complete.

28.

GOVERNING LAW AND SETTLEMENT OF DISPUTES

28.1

This Agreement shall be construed and governed by the laws of Pakistan. Any disputes,
controversy or claim arising out of or relating to this Agreement shall, failing amicable

settlement, be finally settled under the Arbitration Act 1940 of Pakistan. The place of
arbitration shall be Lahore. The language of the arbitration shall be English. The Courts
at Lahore shall have exclusive jurisdiction to adjudicate upon any matter arising under
this Agreement.

29. CONFIDENTIALITY
29.1

The Contractor shall not during the continuance or after the termination of this
Agreement disclose any information obtained or acquired concerning SKMTs business
or affairs under this Agreement, unless the disclosure of such information or document is
required by law, any order of the Court or any other directive (whether administrative,
investigative or otherwise) of any relevant governmental authorities, or such material,
information or document has become public or has come into the public domain without
any fault, act or omission of the receiving Party.

30.

RELATIONSHIP OF LABOR WITH SKMT

30.1

It is clearly understood and agreed that in performance of the Service under this
Agreement, the labor so provided is acting solely as the employees of the Contractor (the
Employees) and the Employees so provided shall always remain under the
management, control and supervision of the Contractor. Moreover, under no
circumstances shall the Contractors personnel be regarded as Employee of SKMT and
there shall be no Employer /employees relationship between them and the SKMT.

31.

NOTICES

31.1

Any notice or other document required to be given under this Agreement or any
communication between the Parties with respect to any of the provisions of this
Agreement shall be in writing, in English and deemed to have been duly given if signed
by or on behalf of a duly authorized officer of the Party giving the notice and if left at or
sent by pre-paid registered or recorded delivery post at the addresses given above or by
telex telegram, facsimile transmission or other means of telecommunication.

32.

NO WAIVER

32.1

Failure by either party herein to exercise a right or enforce an obligation under this
Agreement in any one or more instances shall not be deemed a waiver by that party of
such right or obligation in any other instance.

33.

SURVIVAL OF AGREEMENT

33.1

The rights and obligations of the parties under this Agreement which by their nature
should continue beyond its expiration, termination or cancellation, shall survive the
expiration or termination of this Agreement.

34.

GOVERNING LAW AND SETTLEMENT OF DISPUTES

34.1

This Agreement shall be construed and governed by the laws of Pakistan. Any disputes,
controversy or claim arising out of or relating to this Agreement shall, failing amicable
settlement, be finally settled under the Arbitration Act 1940 of Pakistan. The place of
arbitration shall be Lahore. The language of the arbitration shall be English. The Courts
at Lahore shall have exclusive jurisdiction to adjudicate upon any matter arising under
this Agreement.

35.

FORCE MAJEURE

35.1

Either Party shall be excused from the performance or punctual performance of any of its
obligations under this Agreement and such obligations shall be extended by a period
reasonable under the circumstances if the performance thereof is prevented or delayed by
any cause beyond the affected Partys reasonable control which, without in any way
limiting the generality of the foregoing, shall include acts of God, riots, wars, accidents,
embargo or requisition (acts of governments) etc.

35.2

In case of force majeure, the affected Party shall promptly notify the other Party in
writing and furnish all relevant information thereto.

36.

MODIFICATION

36.1

This Agreement may not be modified or amended except by a writing which is signed by
authorized representatives of each of the Parties.

37.

SEVERABILITY

37.1

The provisions of this Agreement are severable, and in the event that any provision of this
Agreement shall be determined to be invalid or unenforceable under any law, such
invalidity or enforceability shall not in any way affect the validity or enforceability of the
remaining provisions hereof.

38.

ENTIRE AGREEMENT

38.1

This Agreement sets forth and shall constitute the entire agreement between Parties with
respect to the subject matter hereof, and shall supersede any and all prior agreements,
understandings, promises and representations made by one Party to the other concerning
the subject matter hereof.

39.

MISCELLANEOUS

39.1

Construction of temporary water storage tank is the responsibility of the Contractor of

part of the agreement or shall not be paid separately to the Contractor.

39.2

Internal and external PPRC and GI words for hot and cold water supply up to entire
building is the part of agreement

39.3

Electrical conduits and boxes if internal covered area as shown or drawings shall be the
part of agreement.

40.

GENERAL

40.1

Recitals shall form an integral part of the Agreement.

40.2

This Agreement is not assignable by the Contractor.

40.3

This Agreement shall not be deemed to constitute a partnership or joint venture or

contract of employment between the Parties.

40.4

Annexure I & II attached hereto shall constitute an integral part of this Agreement

IN WITNESSES WHEREOF the parties hereto have set their respective hands in acceptance of
the above mentioned terms and conditions on the year, month and day aforementioned.

For & on behalf of Contractor

For & on behalf of SKMT

Authorized Signature

Authorized Signature

_____________________

_____________________

Name: ----------------------------

Name: Dr. Faisal Sultan

Address: --------------------------

Address: 7-A, Block R-3, M.A. Johar

Town Lahore.

NIC No: ____________________

NIC No: ____________________

Witness

Signatures: _________________

Signatures: _________________

NIC No: ____________________

NIC No: ____________________

Address: ___________________

Address: ___________________

___________________

___________________