Framework Agreement (Construction) Template for India

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Key Requirements PROMPT example:

Framework Agreement (Construction)

"I need a Framework Agreement (Construction) under Indian law for multiple residential development projects in Maharashtra, with an initial term starting January 2025, that includes specific provisions for green building standards and local municipal regulations."

Document background
The Framework Agreement (Construction) is a versatile contractual instrument used in the Indian construction industry to establish a long-term relationship between construction service providers and their clients. It is particularly valuable for organizations planning multiple construction projects or phases, as it streamlines procurement processes and ensures consistency in terms and conditions. The agreement, while governed by Indian law, provides a master framework under which specific work orders can be issued, saving time and resources in contract negotiation for individual projects. It typically includes provisions for pricing mechanisms, quality standards, safety requirements, and dispute resolution procedures, all aligned with Indian regulatory requirements and industry standards. This type of agreement is especially useful for large-scale development projects, government infrastructure initiatives, and private sector construction programs where multiple similar projects are anticipated over time.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including their registered addresses and company details

2. Background: Context of the agreement, relationship between parties, and general purpose of the framework arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Scope of Framework: Overall scope of services/works that may be commissioned under the framework

5. Duration and Extension: Term of the framework agreement, including initial period and any extension options

6. Work Order Process: Procedure for issuing, accepting and executing individual work orders under the framework

7. Contractor Obligations: General obligations of the contractor including quality standards, compliance requirements, and performance standards

8. Employer Obligations: General obligations of the employer including access, information provision, and cooperation

9. Pricing and Payment Terms: Framework pricing structure, payment terms, invoicing requirements, and price adjustment mechanisms

10. Quality and Standards: Required quality standards, compliance with codes, and quality assurance procedures

11. Health, Safety and Environment: HSE requirements and compliance obligations

12. Insurance and Indemnity: Insurance requirements and indemnification obligations

13. Force Majeure: Definition of force majeure events and consequences

14. Suspension and Termination: Rights and procedures for suspension and termination of the agreement

15. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

16. Confidentiality: Obligations regarding confidential information

17. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction details

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees - include when project values exceed certain thresholds

2. Intellectual Property Rights: IP ownership and licensing provisions - include when design services or innovative solutions are part of scope

3. Anti-Corruption and Compliance: Specific anti-corruption provisions - include for international projects or when working with public sector

4. Step-In Rights: Employer's right to step in and take over works - include for critical infrastructure projects

5. Parent Company Guarantee: Requirements for parent company support - include when contractor is a subsidiary

6. Local Content Requirements: Local sourcing and content obligations - include when required by law or project specifics

7. Currency and Exchange Rate: Currency provisions and exchange rate mechanisms - include for international contracts

8. Sustainability Requirements: Environmental and sustainability obligations - include for green building projects

9. BIM Requirements: Building Information Modeling obligations - include for complex projects requiring BIM

10. Workforce Requirements: Specific staffing or local employment requirements - include when required by law or project specifics

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed description of types of works covered under the framework

2. Schedule 2 - Pricing Schedule: Rate card, pricing mechanisms, and cost escalation formulae

3. Schedule 3 - Form of Work Order: Template for individual work orders to be issued under the framework

4. Schedule 4 - Technical Standards: Detailed technical specifications and standards applicable to all works

5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement criteria

6. Schedule 6 - Insurance Requirements: Detailed insurance requirements including minimum coverage amounts

7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements

8. Schedule 8 - Forms of Certificates: Templates for various certificates including completion certificates

9. Schedule 9 - Required Submittals: List of documents and submissions required from the contractor

10. Schedule 10 - Key Personnel: Requirements for key personnel and their qualifications

11. Appendix A - Site Access Procedures: Procedures and requirements for accessing work sites

12. Appendix B - Quality Assurance Plan: Details of quality management system and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Construction

Infrastructure Development

Real Estate

Public Works

Industrial Construction

Commercial Development

Residential Development

Transportation Infrastructure

Healthcare Infrastructure

Education Infrastructure

Energy and Utilities

Smart Cities Development

Relevant Teams

Legal

Procurement

Operations

Commercial

Risk Management

Compliance

Project Management

Finance

Business Development

Technical Services

Quality Assurance

Health and Safety

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Procurement Manager

Commercial Director

Chief Operating Officer

Project Manager

Risk Manager

Compliance Officer

Technical Director

Operations Manager

Chief Executive Officer

Financial Controller

Business Development Manager

Quality Assurance Manager

Health and Safety Manager

Industries
Indian Contract Act, 1872: Fundamental law governing contract formation, validity, and enforcement in India, including essential elements of a valid contract, breach, and remedies
Registration Act, 1908: Governs the registration of documents, including certain types of construction contracts that may require mandatory registration
Indian Stamp Act, 1899: Determines the stamp duty payable on various types of agreements and instruments, including construction contracts
Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996: Regulates employment and working conditions of construction workers, including safety measures and welfare provisions
Arbitration and Conciliation Act, 1996: Governs the arbitration process in India, crucial for dispute resolution clauses in construction contracts
Environmental Protection Act, 1986: Sets environmental standards and requirements that construction projects must comply with
Real Estate (Regulation and Development) Act, 2016: Regulates real estate sector and includes provisions affecting construction contracts and project execution
Goods and Services Tax (GST) Laws: Determines taxation requirements and rates applicable to construction services and materials
National Building Code of India, 2016: Provides guidelines for construction standards, specifications, and safety requirements
Competition Act, 2002: Ensures fair competition and prevents anti-competitive practices in construction contracts and bidding processes
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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