Who is responsible for getting the Rajuk / municipal approval — client or contractor?

Whichever the contract says. In practice, the client normally holds the responsibility because the approval is issued in the property owner's name, but the contractor should be obliged to prepare and submit the drawings and supporting documents. Whatever the split, spell it out clearly in the contract, along with the deadline for the approval and what happens if it is refused or delayed — otherwise both sides will blame the other when the site cannot lawfully open.

Can the client hold back a percentage of the payment for defects?

Yes — a retention clause (typically 5-10% of each milestone held back for a defect-liability period after handover, usually 6-12 months) is standard and enforceable. Without a retention clause, the client has little leverage to force the contractor to fix defects that surface after handover, so include one from day one. The retention is released at the end of the defect-liability period after any snagging is closed out.

Construction & Contractor

Construction and contractor agreements — building construction contracts, contractor engagement, architect / design agreements, material supply, electrical, plumbing, painting, rod / cement / sand supply, tile / floor work, gate / grille — are the paperwork behind every new building, renovation and repair project in Bangladesh. Construction disputes are among the most costly civil disputes in Bangladesh because they arise mid-project, when the client already has a partially-built structure and the contractor already has partial payment and sunk cost. A well-drafted contract turns milestones, payment tranches, quality standards, delay penalties, and the completion certificate into pre-agreed facts rather than trigger points for a lawsuit.

Stamp & registrationMost construction contracts run on non-judicial stamp of the value prescribed for a contract of the relevant amount. Building work in urban Bangladesh usually requires Rajuk / municipal approval before construction starts, and a critical clause is which party carries responsibility for that approval. Milestone-based payment (with retention held back until defect-liability period ends) is the market-standard structure; a lump-sum-on-completion model is possible for small jobs but creates severe dispute risk on medium-sized projects.

Contract types in this category

Frequently asked questions

Who is responsible for getting the Rajuk / municipal approval — client or contractor?: Whichever the contract says. In practice, the client normally holds the responsibility because the approval is issued in the property owner's name, but the contractor should be obliged to prepare and submit the drawings and supporting documents. Whatever the split, spell it out clearly in the contract, along with the deadline for the approval and what happens if it is refused or delayed — otherwise both sides will blame the other when the site cannot lawfully open.
Can the client hold back a percentage of the payment for defects?: Yes — a retention clause (typically 5-10% of each milestone held back for a defect-liability period after handover, usually 6-12 months) is standard and enforceable. Without a retention clause, the client has little leverage to force the contractor to fix defects that surface after handover, so include one from day one. The retention is released at the end of the defect-liability period after any snagging is closed out.

Construction & Contractor

Frequently asked questions

Who is responsible for getting the Rajuk / municipal approval — client or contractor?: Whichever the contract says. In practice, the client normally holds the responsibility because the approval is issued in the property owner's name, but the contractor should be obliged to prepare and submit the drawings and supporting documents. Whatever the split, spell it out clearly in the contract, along with the deadline for the approval and what happens if it is refused or delayed — otherwise both sides will blame the other when the site cannot lawfully open.
Can the client hold back a percentage of the payment for defects?: Yes — a retention clause (typically 5-10% of each milestone held back for a defect-liability period after handover, usually 6-12 months) is standard and enforceable. Without a retention clause, the client has little leverage to force the contractor to fix defects that surface after handover, so include one from day one. The retention is released at the end of the defect-liability period after any snagging is closed out.