The inclusion of a liquidation clause is not without risks. The agreed amount may not be sufficient to cover the entirety of the damage suffered by the owner. Or perhaps larger than the amount ordered by a court. However, with a liquidated compensation clause, the owner can be assured of recovering a certain amount for construction delays and the contractor may limit his exposure. 19. The mobilization advance of Rs 7,00,000.00 (Only Seven Lakhs Rupees) (filling the amount of the advance indicated) is agreed by the owner, which is drawn to the contractor, empty scheck , `full cheque number and date` before the start of the work. 2. This contract is based on one square metre. The cost per square metre of built area is Rs. 1750 (only seven hundred and fifty) (filling with cost).

The square metre should cover all built-up areas, including balconies and utilities. Sit-outs and passages are calculated at 200 Rs per sft. After several meetings with different contractors/builders to build your dream home and through several building quotes, after which you choose the contractor you think is the right person for building your home in Bangalore. If the compromise clause is mentioned in the agreement, the dispute should be settled out of court. You should understand that arbitration is the least expensive and billing will be done quickly. If you sign the agreement with the compromise clause, you do not have the right to take the matter to court. The terms of the agreement between the owner and the contractor include work to be worked, construction time, payment plans, escalating costs, delays, penalties, construction materials used, etc. If there are changes, they should be made in accordance with the agreement between the owner and the contractor. In most cases, there will be no change. The changes will be minor. For example, the layout of cabinets, wiring and the inclusion of additional power outlets and other aspects may be discussed by the owner, so that his interests are served by the contractor. As long as construction costs are within the price limit, there will be no difficulty in making changes.

Cost or cost-plus: In a cost-plus contract, the owner reimburses the contractor for all costs incurred during construction, such as equipment and work. The owner also pays an agreed profit margin, usually a flat fee or a percentage of the total cost. 18. The owner, who retained ownership of the land, only allowed the contractor to enter the property for the purpose of building.