Contractor Agreement Template — Free Download for Indian Builders

What is a Contractor Agreement?

A Contractor Agreement is the legal contract between a builder/owner and a contractor (civil, electrical, plumbing, MEP, finishing, labour) covering scope of work, BOQ-linked rates, payment milestones, retention, advance recovery, GST, defect liability period, and dispute resolution. In Indian construction, the contractor agreement is the single most important document — when disputes arise (and they often do), this is the document arbitrators read.

Many small builders shake hands and skip the agreement, only to face quantity disputes, abandoned sites, or overpayments six months in. Even a 4-page agreement, signed by both parties on stamp paper, prevents 95% of these issues.

When is it used?

At the start of every contractor engagement, before any work or advance is paid. Should be printed on ₹500 non-judicial stamp paper (or e-stamp), signed by both parties, witnessed by 2 people, and notarised. Each party keeps an original.

Key clauses in this agreement

• 1. Parties — builder/owner name, contractor name, addresses, GSTIN/PAN
• 2. Project description + site address + RERA registration
• 3. Scope of work + BOQ schedule (annexed)
• 4. Contract value + GST treatment
• 5. Schedule — start date, completion date, milestones
• 6. Payment terms — RA bill cycle, retention 5–10%, advance
• 7. Material — who supplies what (cement/steel typically owner; rest contractor)
• 8. Quality standards + IS/NBC references
• 9. Defect Liability Period (typically 12 months from completion)
• 10. Termination clause + liquidated damages
• 11. Indemnity + insurance (workmen compensation, public liability)
• 12. Dispute resolution — arbitration seat, governing law, jurisdiction

How to use this template — step by step

1. Open the Word file and fill the [bracketed] placeholders.
2. Annex the BOQ with item-wise rates, signed by both parties.
3. Set retention + advance terms per your project size.
4. Lock the schedule and define liquidated damages for delay (typically 0.5% per week, capped at 5%).
5. Print on ₹500 stamp paper and notarise.
6. Sign with 2 witnesses — keep originals safe; share PDF with PM and accounts.

Common mistakes

• No BOQ annexure. Without it, every variation becomes a fight.
• Vague scope. "All civil works" is meaningless — specify what's in and what's out.
• No retention clause. Contractor disappears after RA-3, defects in your hand.
• Missing GST treatment. Always state whether quoted rate is inclusive or exclusive of GST.
• No arbitration clause. Court litigation in India takes 5+ years; arbitration takes months.

How Site Setu helps

Once the agreement is signed, Site Setu's Contractor module digitises the BOQ, tracks work-done %, generates RA bills with deductions auto-applied, and maintains a full audit log. Defect liability tracking, retention release dates and dispute documentation all live in one place. Features · Pricing.