House Construction Agreement

A house construction agreement (bari nirman chukti) fixes the terms between a landowner and a contractor for construction of a residential building on the owner's land. In Bangladesh the contractor may build on an item-rate basis (rates per unit of concrete, brickwork, MS rod), on a lump-sum basis, or on a labour-only basis where the owner supplies materials. The contract must reference the approved building plan (Rajuk / city-corporation permit), specify structural drawings and materials, define payment milestones tied to slab-casting and finishing stages, and include a defect-liability period. The Building Construction Act, 1952 and the Bangladesh National Building Code, 2020 impose statutory obligations on structural safety; sub-standard construction cannot be contracted out.

Stamp & registrationA house construction agreement is executed on a Tk. 300 non-judicial stamp for standard residential projects; higher-value or commercial projects sometimes use Tk. 1,000 stamp for evidentiary weight. Registration under the Registration Act, 1908 is not mandatory but is advisable where the contract creates any interest in the underlying land (e.g. developer-share agreements — see the separate developer-agreement page). The contractor's trade licence, VAT registration and any professional-engineer certification should be annexed as schedules.

What this agreement typically contains

Landowner name, NID, address, and title-deed reference
Contractor name, trade licence, VAT registration, address
Plot description — mouza, dag, khatian, area, plan approval reference
Scope of work — foundation, superstructure, finishing, MEP with drawings
Rate basis — item-rate, lump-sum, or labour-only with material supply
Payment milestones (typically: mobilisation, foundation, each slab, finishing, handover)
Timeline with liquidated damages for delay
Material specification, brand, and quality standards
Defect liability period (typically 12-24 months from handover)
Signatures of owner, contractor, and at least two witnesses

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Frequently asked questions

Do I need Rajuk approval before signing the construction agreement?: Yes for any construction in Rajuk-controlled areas (Dhaka and its planning jurisdiction). Under the Building Construction Act, 1952 and the Dhaka Metropolitan Building Construction Rules, 2008, building without approved plans attracts fines, demolition orders and structural certification refusals. The construction agreement should annex the approved building plan and permit as a schedule, and require the contractor to build strictly to that approval. Similar rules apply for CDA (Chittagong), KDA (Khulna) and RDA (Rajshahi) jurisdictions. Outside the metropolitan planning areas, upazila / municipality permit still applies under the Local Government Acts.
What happens if the contractor delays completion?: The agreement should specify a completion date and a liquidated-damages rate — commonly 0.1-0.5% of contract value per week of delay, capped at 5-10% of the contract sum. Under Section 74 of the Contract Act, 1872 liquidated damages are enforceable only up to genuine pre-estimate of loss (not a penalty). If the contract has no LD clause, the owner can still claim actual loss (extra rent for alternative accommodation, delayed marriage occupation) but must prove the loss with evidence. Include a termination-for-delay right after a fixed grace period.
Who is liable for structural defects after handover?: The defect-liability period in the contract (typically 12-24 months) makes the contractor liable to repair defects arising from workmanship or material at no cost. Beyond that period, latent structural defects can still be pursued under Section 73 of the Contract Act, 1872 for reasonably foreseeable loss, and under tort for negligence where safety is affected. Structural warranties from cement / steel suppliers can be assigned to the owner. For any part of the work certified by a professional engineer, the engineer carries separate professional-negligence liability.

Other contracts in this category

What this agreement typically contains

Landowner name, NID, address, and title-deed reference

Contractor name, trade licence, VAT registration, address

Plot description — mouza, dag, khatian, area, plan approval reference

Scope of work — foundation, superstructure, finishing, MEP with drawings

Rate basis — item-rate, lump-sum, or labour-only with material supply

Payment milestones (typically: mobilisation, foundation, each slab, finishing, handover)

Timeline with liquidated damages for delay

Material specification, brand, and quality standards

Defect liability period (typically 12-24 months from handover)

Signatures of owner, contractor, and at least two witnesses

Frequently asked questions

Do I need Rajuk approval before signing the construction agreement?

Yes for any construction in Rajuk-controlled areas (Dhaka and its planning jurisdiction). Under the Building Construction Act, 1952 and the Dhaka Metropolitan Building Construction Rules, 2008, building without approved plans attracts fines, demolition orders and structural certification refusals. The construction agreement should annex the approved building plan and permit as a schedule, and require the contractor to build strictly to that approval. Similar rules apply for CDA (Chittagong), KDA (Khulna) and RDA (Rajshahi) jurisdictions. Outside the metropolitan planning areas, upazila / municipality permit still applies under the Local Government Acts.

What happens if the contractor delays completion?

The agreement should specify a completion date and a liquidated-damages rate — commonly 0.1-0.5% of contract value per week of delay, capped at 5-10% of the contract sum. Under Section 74 of the Contract Act, 1872 liquidated damages are enforceable only up to genuine pre-estimate of loss (not a penalty). If the contract has no LD clause, the owner can still claim actual loss (extra rent for alternative accommodation, delayed marriage occupation) but must prove the loss with evidence. Include a termination-for-delay right after a fixed grace period.

Who is liable for structural defects after handover?

The defect-liability period in the contract (typically 12-24 months) makes the contractor liable to repair defects arising from workmanship or material at no cost. Beyond that period, latent structural defects can still be pursued under Section 73 of the Contract Act, 1872 for reasonably foreseeable loss, and under tort for negligence where safety is affected. Structural warranties from cement / steel suppliers can be assigned to the owner. For any part of the work certified by a professional engineer, the engineer carries separate professional-negligence liability.