CONSTRUCTION AGREEMENT

This agreement executed at Chennai on this day of April 2011

BETWEEN

L.VEERA REDDY, aged 65 years, residing at Flat No. 302, Parkview Apartments, Pragathi
Nagar, Yousufguda, Hyderabad – 45, herein after called the OWNER, the party of the
“First Part” which term shall mean and include their successors, administrators and assignee
(power of attorney) on the other part.

AND

M/S.EMINENT FOUNDATIONS, represented by Mr.K.P.Tharakeswara Reddy, having

office at No.16/58, 4TH Street, Ganga Nagar, Kodambakkam, Chennai- 24 herein after called
the CONTRACTOR, the party of the “Second Part”, which term shall mean and include their
successors, administrators and assignee (power of attorney) on the other part.
Whereas the owner has entrusted to the CONTRACTOR, the construction of the Building for
their residence at Chakrapani Nagar. .

Herein after described and Contractor has undertaken the said work of the residential
building.

Whereas the SECOND PART has agreed to execute and complete the works as per the
working plan and to the entire satisfaction of the FIRST PART.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

The contractor shall erect and construct the building for the owner, the construction of the
building will be as per the drawing.

The construction and all works connected there with to be of first class order and quality and
as per drawing and specification enclosed. The quality of the work will be rated and certified
by the owner at the time of settling each stage of the building and decision of the owner is
final.

The contractor shall provide all necessary materials, labour, tools and plant for the purpose of
construction of the residential building for the owners at Chakrapani Nagar, Chennai.
The construction work will be executed by the contractor will include all Civil work,
Electrical work and Plumbing work (Water supply & Sanitary lines). Entire construction
work will be completed within 12 months (twelve months) from this date of agreement
entered and the contractor will be held responsible and liable in case of delay of agreement
entered and the contractor will be held responsible and liable in case of delay beyond the said
time of 12 months. Except for the reasons of natural calamity such as emergency due to war
with other nations, unexpected general strikes, bandh, hartal due to political unrest,
unprecedented rain, cyclones or force majeure.

It is a contract to carry out the construction of the residential building in the said plot as per
the plan enclosed for which the payment will be made according to plinth area of the building
as per specification mentioned in the Annexure – 1 and the rate is fixed at Rs.1450/- per sft,
in an average for all the floors. The above rate does not include the following:

 External are lighting, compound wall lighting, main EB cable, electrical fittings
 External elevation features of the building including civil, RCC and aesthetics &
ornamental finishes
 Amenities Compound wall with gates, Filling and Paving around the building,
Bore well & motor, Metro water connection, EB connection, etc.

The approximate area of the construction of the building in all floors is about 8200 sft
as per the plans, however, the actual area of construction will be measured after completion
of the construction and the charges accordingly.
The contractor shall remove all the rubbish, debris and waste materials left over on the site
after completion of work and shall clean the entire building level and the unbuilt area before
handling over to the owner.

The FIRST PART hereby agree to provide the water and electricity required for the
construction at free of cost.

The SECOND PART hereby agrees to complete the construction as per the specification
within the 12 months.

The SECOND PART is responsible for the welfare of labourers engaged by them / and / or
by their sub-contractor. Any damage claimed by the labourers in case of any accident or
otherwise is to be paid by the SECOND PART.

The progress of the work should be uniform and if the quality of the work or progress is not
satisfactory, the FIRST PART can terminate the SECOND PART and settle their account for
the works carried out.

The FIRST PART reserve the right to appoint any other agency and proceed with the work
whether or not the amount due to the SECOND PART is settled immediately, provided the
measurements have been taken and accepted by both the parties. However the bill should be
settled before the date of taking over the site.

The FIRST PART reserves the right to award some of the items that are not covered in the
agreement to other agencies.

The SECOND PART shall execute the work as per the plan and specifications agreed upo
(enclosed as annexure – 1).

The SECOND PART should use only best materials and should conform ISI.

The SECOND PART shall intimate the financial commitment in writing if any in case of any
change in specifications or materials.

The list of materials and its basic rate assumed are given below:
i. Cement - Rs.260/- per bag.
ii. Steel - Rs.42000/- per ton.
iii. Brick - Rs.16000/- 3000 nos.
iv. Blue metal 20mm - Rs.28/- per cft.
v. River Sand - Rs.32/- per cft
vi. Pressed clay tiles - Rs.9/- per tile.
vii. Vitrified Tiles - Rs.50/- to 55/- per sft.
viii. Ceramic Tiles - Rs.40/- to 45/- per sft.
ix. Teakwood - Rs.2200/- per cft.
x. Granite (steps) - Rs.250/- per sft.
xi. Paver Cement Blocks - Rs.30/- per sft.
Escalation in the cost of materials or change in Government policy, up to + 2.5% will be
absorbed by the Contrator. If it is more than 2.5%, the owner has to pay the difference
amount or less than 2.5%. The difference amount shall be deducted from Contractor’s bill.

The amount to be remitted to Tamil Nadu Electricity Board, Metro Water, Sewerage
connection and any other fees levied by Government to be borne by the FIRST PART.

The payment should be paid as per schedule as given in the enclosed Annexure – 2. In case
of delayed payment interest will be charged at the rate of 18% per annum or alternatively the
SECOND PART may stop the work and have the accounts settled, in which event, the site
will be handed over to the FIRST PART after the settlement of account.

In the event of failure of the SECOND PART to complete the work within the stipulated time
or any extension thereof or abandoning the work, the contractor shall be liable to pay a 0.25%
per week and part there of subject to a maximum of 5% of the total value of work as
liquidation damages.

In the event of disputes that could not be settled mutually between the parties, it shall be
resolved by a reference to Arbitration in accordance with the provisions of Arbitration.

IN WITNESS WHEREOF BOTH THE FIRST PART AND THE SECOND PART HAVE
SET THEIR HANDS ON THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN.

SECOND PART FIRST PART

WITNESS – 1:

WITNESS – 2:
 ANNEXURE – 1

Specification:

RCC Structure:

RCC framed structure with RCC columns and beams as per structural design.

Super Structure:

Plinth height of the car parking will be 2’6” feet from the road level & Super Structure,
external walls of 9” thick and internal walls 4.5” thick in cement mortar with fly ash bricks.
Parapet wall about to a height of 3’0”

Plastering:

All ceilings and walls will be plastered, and ceiling corners with POP borders.

Flooring:

Living Bed rooms & Kitchen : Vitrified Tiles

Toilets (Dado&Flooring) : Ceramic Tiles

Carparking Area : Paver Cement Blocks

Wood Work:

Main Door : Teak Wood Frame & Shutter

Other Doors : T.W. Frames with Skin Shutter

Toilet Doors : T.W. Frames with BSP Shutters

Windows & ventilation : Powder coated Aluminium glazed windows

Hand Rail : Stainless Steel

Plumbing:

External and Internal plumbing lines and rainwater down drain of PVC Pipe will be provided.
The sanitary fittings are Hindware or equivalent make & all bathrooms will have EWC in
each flat and CP fittings are Ess Ess or equivalent make.

Electrical:

PVC concealed conduit with ISI brand copper wire and with necessary circuit breakers.
Painting:

Ceilings and Internal walls will be finished with l putty and two coats of emulsion paint.
External walls will be finished with two coats of exterior emulsion paint. Main door will be
varnished and other doors will be painted.

Weathering course:

Brick jelly lime concrete as per standards and one course of pressed clay file (basic cost of
the tile Rs.9/- per no.) with base mortor.

Overhead tank (3000 ltrs), Sump (15000 ltrs), Septic Tank (6000 ltrs) will be provided.
 ANNEXURE-2

Payment Schedule

1. Advance at the time of agreement 10.00%

2. On completion of foundation & basement 12.50%
3. On completion of Ground floor roof slab 12.50%
4. On completion of First floor slab 12.50%
5. On completion of Second floor roof slab 12.50%
6. On completion of Ground floor brick work 7.50%
7. On completion of First floor brick work 7.50%
8. On completion of Second floor brick work 7.50%
9. On completion of Plastering both internal & external
7.50%
10. On completion of Flooring 7.50%
11. On handing over 2.50%