PROJECT CONSULTANCY FOR ____________________
DRAFT OF AN AGREEMENT WITH THE OWNER
Whereas, the owners / promoters ____________________________ represented by _________________________ ( hereinafter referred to as the Party No1) wishes to establish a __________________ capacity plant at a location _______________ in the dist. ________, state : ________, country : ________ ( hereinafter referred to as “ the Project”) and whereas, the consultants M/s SMB Environmental Projects (Pvt) Ltd, a registered consulting company from Nagpur, through its authorized representative _____________, having its office at ____________________, ( hereinafter referred to as Party No 2) have agreed to provide complete turnkey consultancy for establishing such a factory/ plant / unit on such terms and conditions as explained hereunder :
- The party No 2, shall make an estimate of the land requirement and advise the party no 1 suitably. The Party No 1 (the owners/promoters) shall arrange the required land for this project, which shall be having a clear title, free from all encumbrances, and free from any litigation whatsoever. Further, the party no 2, shall assist by way of drafting all documents to enable the party no 1, for obtaining all the necessary clearances, NOCs and permissions. However, it is implicit that the primary responsibility of obtaining all such NOCs, clearances and permissions shall remain with the party no 1 only.
- The Party No 1 shall arrange the required finances from its own sources, from its promoters or from the financial institutions or any other financing bodies as the case may be. The Party no 2 shall assist in preparing all necessary documents like project feasibility study, detailed project report, financial viability statements etc. as required by the promoters and / or such financial institutions, as the case may be.
- The Party No 2 shall also assist the party No 1 in preparing all necessary documents and applications required to constitute a registered body with all Govt. authorities like registrar of co-operative societies / companies / NGOs / DICs / Industrial Development Organizations and other such authorities like Sales Tax, Income Tax, Excise. Similarly, all documentation will be provided by the party No 2 to the Party No 1 for obtaining necessary industrial power load / connection from the state / private power supplying agencies. Again, it is implicit that the prime responsibility to obtain the registrations and compliance with the requirements of all such Govt agencies / institutes shall remain with the Party No 1 only.
- Once the land is acquired, the factory/plant project management entity is legally constituted and financial approvals are obtained by the Party No 1, the party No 2 shall take up complete detailed engineering, preparation of civil, mechanical and execution drawings, preparing specifications and tender documents of plant and machinery, preparation of raw materials linkages, manpower estimate, organization chart, procurement strategy and all managerial issues required to operate this factory / plant / unit. It is possible that some of such exercises will be concurrently taken up and completed concurrently, while the process of land acquisition, financial sanctions and other legal formalities may be underway.
- Once all the project planning work is completed and necessary initial financial / licensing sanctions are available for the Party No 1, the Party No 2 shall commence the actual project execution work, starting with floating the tenders or enquiries for supplies, installation, erection of plant and machinery, construction of civil buildings, construction of infrastructural facilities like power feeder lines, firefighting facilities, residential accommodation for the management and non-management staff etc. ( if any ). The Party No 2 shall go on to prepare and issue all necessary purchase orders with the approvals of the owners / promoters’ representatives ( the Party No 1 ) and supervise the deliveries, monitor important milestones during implementation stage and also develop erection contracts for installation of all such facilities, be it on – sites or off – sites.
- It shall be the responsibility of the Party No 1, to ensure release of finances for all the purchase activities from time to time as per the terms of different Purchase Orders so that the work is expeditiously completed as per the approved Detailed Project Report (DPR)
- PAYMENT TERMS OF CONSULTANCY: For providing complete turn – key project consultancy as enlisted above, the party No 1 shall pay to party No 2, a consultation fee equivalent of ___ % ( _____ percent ) of the cost of Plant & Machinery. The payment terms shall be : a token advance or Rs. _____ at the time of signing the agreement of consultancy and balance shall be in phases as follows :
- Rs. ___ as 2nd advance on completion of the detailed project report
- ___% on release of all execution drawings and tender specifications
- ___ % on completion of deliveries of plant and machineries at site.
- ___ % on completion of erection and completion at site.
- ___% minus the initial advances as the final installment of consultancy fee after satisfactory commissioning of the plant.
- Site visit travelling / conveyance expenses, lodging, boarding of our executive / engineer / drafter / staff in connection with the above work shall be borne by the client.
- Both the parties hereby agree to abide in letter and spirit all the terms and conditions faithfully and agree to support each other for speedy completion of the project.
- Any dispute arising out of or on account of any breach of trust vis a vis the terms of this agreement, may be referred to a mutually acceptable arbitrator and the decision of such arbitrator shall be binding on both the parties. The jurisdiction will be subject to Nagpur – India.
Thus, both the parties, after reading carefully and understanding all the clauses have put their signatures herein below on the day ____ month ____ year _____, in presence of the witnesses.
Name: __________________ Name: ________________
(For Party No 1) (For Party No 2)
Witnesses: 1. Name ______________ Signature _______________
2. Name ______________ Signature ________________