Practical Fool Proof Budget Construction Contract Agreement

Practical Fool Proof Budget Construction Contract Agreement

Shared is budget construction contract agreement for grey structure of a house. By budget construction contract agreement, we mean that some of the materials mentioned are not top quality, rather they are compromised in terms of prices but are not compromised to the extent that the quality goes low. Let us see how the agreement should look like:

This Agreement is made and entered into at (city) between

Client (Name)


Contractor (Name)

whereas it is agreed that Contractor would provide the “Labor & Material” for the “Grey Structure” construction of the house for Client, located at ——————- (Address of the project)

Construction of building will include the following items:


  1. Excavation for foundation trenches up to 3’-0” from NSL, including ramming, watering, compaction and dressing.
  2. Laying of 6” thick 1:4:8 Plain Cement Concrete – PCC (1 cement, 4 sand and 8 aggregate 1” and down gauge) on foundations as per structural drawings. Work shall include leveling, compacting and curing of PCC.
  3. Providing and laying 1st class solid burnt brick (Awal Class) masonry set in Bestway cement and Ravi sand mortar 1:5.
  4. Providing and applying anti-termite treatment to foundation bed, vertical surfaces & under floors from specialized firm Fipronil brand anti termite chemical.
  5. Contractor shall inform Client prior to pouring PCC in the foundation. PCC shall be poured after compaction of soil through hand rammer.


  1. Providing and laying 1.5-inch-thick horizontal damp proof course (at two levels/double DPC) with cement concrete 1:2:4 cast in situ using graded screened crush of ¾ inches and down gauge including compacting curing and finishing etc.
  2. Laying of Polythene sheet (500 gauge) with 2 coats of hot Bitumen layer on top.
  3. Providing damp proof course ½ inch on vertical wall surfaces of internal sides of rooms joining two different level horizontal DPCs, with zero size crush/chips-cement plaster 1:4 including curing.
  4. Filling of Ravi Ghassu (Silty-Sand) up to DPC level.


  • Providing and laying 1st class solid burnt ( Rs.—/-)  brick masonry in all floors, set in Bestway cement and Ravi sand mortar 1:4 in walls of 9“and 4-1/2” thickness including scaffolding raking out joints and curing etc.
  • Providing and laying 1st class solid burnt brick masonry for balcony/terrace columns, set in Bestway cement and Chenab sand mortar 1:4 in walls 4-1/2”, raking out joints and curing etc.


  • Laying, straightening, and cutting, bending and binding of FF Grade 60 reinforcement bars in 1:2:4 cement concrete in slabs, columns, beams/lintels and Stairs as per structural drawings. Work shall include leveling, finishing and curing of RCC.
  • Plywood Form work shall be used for all RCC work.
  • Contractor to inform Client prior to pouring of slabs. Pouring of slabs shall be continuous without any interruptions.


  1. ½” thick Bestway cement, Ravi sand plaster in 1:3 on ceiling etc. including curing etc.
  2. ½” thick Bestway cement, Ravi sand plaster in 1:4 on walls, columns etc. including making edges, corners and curing etc.
  3. Jali/mesh will be provided only on front elevation where parapet and slab will join.
  4. ½” Grove will be provided on side and back elevation where parapet and slab will join.


  1. Providing and laying Brick ballast 1.5” and down gauge under floor including leveling, compacting and curing etc. complete in all respect.
  2. Providing and laying 1:2:4 cement concrete 2” thick using Bestway, Sargodha “A” mix quality crush and Ravi sand under floor as per structure drawings including leveling compacting and curing etc. complete in all respect.
  3. Contractor shall be responsible for filling of voids with sand and proper compacting and curing of this work.
  4. Both interior as well as the exterior grey flooring shall be the responsibility of this contractor.


  1. Popular PPRC 25mm dia (Pn16) pipes will be used for internal wirings for cold/warm water pipes but for outer PPRC (Pn16) pipes 25mm dia size will be used for cold & warm water. Popular UPVC Sewerage Series 3-inch dia waste pipe will be used for drainage of water and 4-inch dia pipe will be used for waste drainage and ultimately, they will fall in 6-inch dia pipe which will be laid outside the building. As per plumbing drawings.
  2. Exterior UPVC joints will be concealed with concrete layer.
  3. UPVC P-trap will be used for Sewerage system.
  4. Company will provide single PPRC 40mm (Pn16) main line from OH Water tank. If client demands more than one line than the difference will be paid by client.
  5. One Geyser point for Ground floor and one for First floor backside of house. Instant geyser point will charges in extra work. It will be charged Rs.——-/- per Point.
  6. All water lines shall be tested by keeping the water in the lines for 12-24 hours under 100 psi pressure, prior to concealing.


  • Laying provided Popular VICTOR PVC electrical pipes for all outlets and switches in brick masonry or concrete per electrical drawings.
  • Installing only Popular VICTOR PVC electrical boxes at all switches and outlets.


  • Sui Gas connection shall be available in:
    • Kitchen
    • T.V Lounge (Fireplace).
    • Geyser point.
    • After completion of Plaster Work if client requires any point for Gas It will be charged Rs.——-/- per Point.


  • Providing and fixing mild steel door frames 18 SWG.


  • Providing and applying roof comprising of clay, tiles size 9” x 4.5” x 1.5” laid with 0.5” joint in between tiles and grouted with 1:3 C.S mortar over 2-inch-thick mud bhoosa consist of clay, 1 layer of polythene sheet of 500 gauge (joint overlapping 6”) over 2 flood coats of ready-mix bitumen.


  • Underground water tank (UGWT) will be constructed in RCC bottom & top slabs and walls as per structural drawings.
  • Septic Tank will be constructed in RCC bottom & top slabs and walls as per structural drawings.
  • Providing and laying 2’x2’ Manholes brick masonry set in Bestway cement and Ravi sand mortar  and plaster ½” thick cement, Chenab sand (1:4) mix with 0 number chips plaster. Manhole top covers will not be the responsibility of contractor.


  • Overhead water tank (OHWT) will be constructed in RCC bottom & top slabs and walls as per structural drawings.


  • Providing and laying 2’-6” height Parapet in brick Masonry 4-1/2” thick including curing etc.


  • Laying of 9” thick brick masonry (Awal class) for front simple boundary wall and 4.5” thick brick masonry for simple boundary wall 7’-0” height from road level as per provided drawings.

Man Power:

  1. Average quality workmanship used for grey construction.

An amount of PKR () will be charged for all the above-mentioned items.

This amount is based on a charge of ______ per Square Feet for the construction area of. (See Annex D, E & F for Covered Area Calculations).

The extra work will be charged as PKR (Annexure C” for “Extra Work” Breakup


  1. Plaster on interior or exterior sides of concealed foundations.
  2. Wooden Door Frames.
  3. Main Gate cost will be the responsibility of Client.
  4. Installation of cover plates at electrical boxes and any lights or fans.
  5. Furnishing and Installation of any Ironwork (Stairs, Terrace Railings, moldings, Steel Pergolas)
  6. Exterior Wood Work at Porch Ceilings or Walls.


  1. Drawings are prepared as per the by-laws of the governing authorities, and contractor shall not be responsible of any construction violations made by the client in regard of LDA/Bahria Town by-laws.


  • Underground water tank, septic tank, boundary wall, plastering of boundary wall, ramp, parapet wall, plumbing and electrical pipes within plot area, kacha of plot area will be part of the contract and area will be considered as the covered area and not as plot area (This point is further covered where contractor has to enter lump sum payment)
  • Payment schedule shall be prepared on basis of work milestones as mentioned in schedule of payment (Annexure – A).
  • Construction Schedule, submitted by the contractor, shall be part of this contract as Annexure B. you can watch a video on the same topic.
  • Contractor shall put a good faith effort to abide by the submitted Schedule.
  • Project completion time is approximately () months from date of issuance of the Mobilization Advance.
  • Water supply connection/Bore & pump, electricity connection & bills , all Government dues Taxes, Duties, Levies, charges, claims, etc., shall be the responsibility of the CLIENT.
  • Camera will be installed by contractor at site for remote monitoring purpose, access will be given to CLIENT.
  • Construction of Shanty/Guard room is responsibility of contractor.
  • Guard will be provided by contractor.
  • Contractor will facilitate in water bore Installation expenses will be on client’s head.
  • Execution work will be performed per the following sets of drawings:
    • Architectural Drawings           –          By Client
    • Electrical Drawings                 –          By Client
    • Plumbing Drawings                 –          By Client
    • Structural Drawings                –          By Client
  • Changes in executed work will be charged extra (including dismantling & reconstruction). Any change from the provided structure, architectural, plumbing and electrical drawings etc. shall first be notified to Client prior to execution.
  • Client at any stage of the project can inspect the workmanship. Any re-work as a result of unsatisfactory workmanship shall be on Contractor’s account.
  • On site cameras will be provided by the contractor for remote surveillance and it will remain the contractor’s property.
  • Contractor shall be responsible for rectifying any construction inconsistent with the drawings.
  • OHWT would be calculated in covered area.
  • Shades has been calculated 1/3 of their area as provided in Annexures D, E & F.
  • During construction if any violation against the society construction byelaws will done by the contractor, the penalties imposed by society will be responsibility of contractor.
  • Electricity for Construction Work will be provided by the client.
  • The areas mentioned are as per drawings. Upon completion, actual areas will be measured.
  • Pergolas has been half calculated in covered area Annexures D, E & F.


Annexure A:                        Payment Schedule

Annexure B:                        Project Schedule

Annexure C:                        Extra Works/ Variations Break Up

Annexure D, E & F:            Calculation of Covered Areas as per Architectural Drawings

Annexure G:                       List of Materials

If you want to read about different types of contracts in construction industry used in Pakistan, click on the link below:

Types of Construction for house in Pakistan | Pros & Cons

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