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Works Contract

Works Contract Template for India

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Key Requirements PROMPT example:

Works Contract

"I need a Works Contract for a solar power plant construction project in Gujarat, India, with a timeline of 18 months starting March 2025, including specific provisions for environmental compliance and local labor regulations."

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Document background
Works Contracts are essential legal instruments in India used for projects involving construction, installation, or modification of structures, facilities, or systems. These contracts are particularly significant as they fall under specific tax treatment in Indian GST law and require compliance with multiple regulatory frameworks. A Works Contract combines the supply of goods and services, making it distinct from pure service or sales contracts. It must address various aspects including labor laws, safety regulations, environmental norms, and state-specific requirements. The document is crucial for large-scale infrastructure projects, industrial installations, and construction works, requiring careful consideration of technical specifications, payment structures, and compliance requirements. The contract type is heavily regulated in India, with each state potentially having additional requirements and tax implications.
Suggested Sections

1. Parties: Details of the employer/owner and the contractor, including their registered addresses and company registration details

2. Background: Context of the works contract, including the project overview and selection of contractor

3. Definitions: Definitions of key terms used throughout the contract, including technical terms specific to the works

4. Scope of Work: Detailed description of the works to be performed, including specifications and standards

5. Contract Price: Total contract value, payment terms, tax provisions, and retention money details

6. Timeline: Project schedule, milestones, completion date, and provisions for extensions of time

7. Contractor's Obligations: Detailed responsibilities including labor, materials, equipment, safety measures, and compliance requirements

8. Employer's Obligations: Responsibilities of the employer including site access, approvals, and necessary permissions

9. Quality Control: Quality standards, inspection procedures, and acceptance criteria

10. Labor Compliance: Compliance with labor laws, ESI, PF, and other statutory requirements

11. Insurance and Indemnity: Required insurance coverage and indemnification provisions

12. Force Majeure: Events constituting force majeure and consequent rights and obligations

13. Termination: Grounds for termination, procedure, and consequences

14. Dispute Resolution: Mechanism for dispute resolution including arbitration provisions

15. Governing Law: Specification of Indian law as governing law and jurisdiction

Optional Sections

1. Performance Security: Required for high-value contracts or when specified by the employer, detailing bank guarantee requirements

2. Variations: Include when the scope of work might need modifications during execution

3. Price Escalation: Necessary for long-term projects subject to material price variations

4. Site Conditions: Important for construction works where site conditions may impact execution

5. Intellectual Property Rights: Required when the works involve design elements or proprietary technology

6. Environmental Compliance: Necessary for projects with significant environmental impact

7. Defects Liability: Important for construction works requiring post-completion warranty

8. Confidentiality: Required when sensitive information will be shared during project execution

9. Step-in Rights: Include for critical infrastructure projects where employer might need to take over

10. Liquidated Damages: Include when specific damages for delay or non-performance need to be pre-determined

Suggested Schedules

1. Schedule 1 - Scope of Work: Detailed technical specifications and drawings

2. Schedule 2 - Bill of Quantities: Itemized list of works with quantities and rates

3. Schedule 3 - Payment Schedule: Detailed payment terms, milestones, and conditions

4. Schedule 4 - Project Timeline: Detailed project schedule with milestones and completion dates

5. Schedule 5 - Quality Specifications: Detailed quality requirements and testing procedures

6. Schedule 6 - List of Approved Vendors/Materials: List of approved suppliers and materials specifications

7. Schedule 7 - Safety Requirements: Detailed safety protocols and requirements

8. Schedule 8 - Forms of Guarantees/Securities: Templates for various guarantees and security documents

9. Appendix A - Site Plan: Detailed site layout and access points

10. Appendix B - Technical Drawings: Complete set of technical and engineering drawings

11. Appendix C - Statutory Compliance Checklist: List of required permits and compliance requirements

12. Appendix D - Insurance Requirements: Detailed insurance coverage requirements and limits

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions



















































Clauses



































Relevant Industries

Construction

Infrastructure

Manufacturing

Real Estate Development

Industrial Projects

Energy & Power

Mining

Oil & Gas

Telecommunications

Railways

Highways & Roads

Commercial Development

Residential Development

Industrial Plants

Water & Waste Management

Relevant Teams

Legal

Finance

Procurement

Operations

Project Management

Risk & Compliance

Commercial

Technical

Quality Assurance

Health & Safety

Engineering

Construction Management

Relevant Roles

Project Manager

Contract Manager

Legal Counsel

Chief Financial Officer

Construction Manager

Site Engineer

Procurement Manager

Risk Manager

Compliance Officer

Operations Director

Technical Director

Commercial Manager

Chief Executive Officer

Quality Assurance Manager

Health and Safety Officer

Industries










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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