SITXMGT002: Establishing Business Relationships - Contractor Agreement

This document presents a contractor agreement between a hotel complex and a contractor for construction work, specifically the expansion of a bar and garden dining area. The agreement outlines key terms such as the scope of work, payment schedule, completion date, and seating arrangements. It also includes conditions related to timely completion and seating capacity, warranties concerning fixtures and payment defaults, and clauses for termination, default, indemnity, and exclusion of liability. Furthermore, the agreement addresses dispute resolution through mandatory arbitration and includes bonus and penalty provisions. The document concludes with sections for contractor and business acceptance, requiring signatures, dates, and witness information to formalize the agreement. Desklib offers a variety of study tools and solved assignments for students.

SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS-Project_Contract_Supplier
AGREEMENT
This agreement is made 16th day of April 2018
BETWEEN
Hotel complex
AND
The Contractor
IT IS HEREBY AGREED THAT
Intention
 Both parties intend to create legal relations.
 Both parties intend to abide by the contract.
 Both parties understand and intend that the agreement be enforced by law.
Agreement
The terms which have been agreed in relation to this contract are as follows
1. The contractor will undertake the construction work which he has been asked to do under
this contract with due diligence and care.
2. The agreement will provided the power to the contractor to do all that is necessary for the
purpose of carrying out the construction work
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS-Project_Contract_Supplier
3. The contractor would be paid by the employer partly in advance and totally after the
completion of the work to the desire of the employer
4. All disputes in relation to the contract are to be dealt with in the jurisdiction of the
employer and would be initially subjected to mandatory arbitration.
Offer
The contract would have to provide constriction services to the employer. The construction
would be in relation to the expansion of bar in the garden area which needs to be completed on
31st November for a price of $10000. The contract also has to expand the garden dining area
under the below mentioned terms for a price of $ 40000.
Terms
It has been agreed by the parties to this agreement that:
1. The contractor will undertake the construction work which he has been asked to do under
this contract with due diligence and care.
2. The agreement will provide the power to the contractor to do all that is necessary for the
purpose of carrying out the construction work.
3. The construction would be in relation to the expansion of bar in the garden area which
needs to be completed on 31st November for a price of $50000
4. The contractor would be paid by the employer partly in advance and totally after the
completion of the work to the desire of the employer.
5. The contractor would complete the construction work before the stipulated time. Time is
the essence of the contract.
6. The outdoor dining area must have seating arrangements for 100 guests.
7. The walls needs to be demolished and replace with doors and large glass panels.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS-Project_Contract_Supplier
8. Appropriate arrangements have to be made in relation to fixing of additional furniture to
be provided by the employer
9. Arrangement would be made by the contractors so that outdoor gas heaters can be
attached.
10. All disputes in relation to the contract are to be dealt with in the jurisdiction of the
employer and would be initially subjected to mandatory arbitration.
11. The employer would have the right to employ another contractor if an anticipatory breach
of contract have been identified by the employer
Conditions
1. Time is the essence of the contract and the completion date is therefore one of the
primary conditions of the contract which if breached the employer would have the right
to rescind the contract and claim damages for any losses which have been incurred.
2. The seating arrangement of 100 people in the new expanded area is also a condition of
this contract which if breached the employer would have the right to rescind the contract
and claim damages for any losses which have been incurred.
Warranties
1. Were the contractor has failed to make adjustments are desired by the employer in
relation to the fixtures mentioned above employer would have the right to claim damages
for any losses which have been incurred.
2. Where there is a default on the part of the employer in relation to payments the contract
cannot be rescinded by the contractor for a period of 1 month from default.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS-Project_Contract_Supplier
Termination clause
1. The contract would be held to be terminated through the legal doctrine of frustration.
2. The contract would be held to be terminated when the employer has identified an
anticipatory breach of contract.
3. The contract shall be terminated if it has been mutually agreed between the parties to the
contract.
Default clauses
1. Where the conditions of the contract have been if breached the parties would have the
right to rescind the contract and claim damages for any losses which have been incurred.
2. Where the warranties of the contract have been if breached the parties would have the
right to claim damages for any losses which have been incurred.
Indemnity clauses
Through this clause the employer indemnifies himself from any liability which may be incurred
due to the actions of the contractor during the construction period.
Exclusion clauses
The employer would not be liable for any loss whatsoever which has been caused to the
contractor while doing the construction work. In case of any contractual liability the liability of
the employer would be limited to $30000 only.
Director’s guarantee
No personal guarantee is provided to the contract from this contact
Negotiable terms
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The employer and the contractor would be open to negotiate in relation to the structure and
design of the construction work
Dispute resolution clauses, mediation and arbitration processes
All disputes in relation to the contract are to be dealt with in the jurisdiction of the employer and
would be initially subjected to mandatory arbitration.
Bonus and penalty provisions
Where the work has been completed on time according to the requirements of the employer the
contractor would be entitled to a 2% bonus.
All losses incurred by the employer due to fault on the part of the contractor have to be
compensated by the contractor.
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS-Project_Contract_Supplier
Contractor acceptance
The above prices/specifications and conditions of work are hereby accepted by
---------------, authorised representative/owner of ---------------
This agreement shall become effective from --------------
SIGNATURE
DATE
WITNESS NAME
SIGNATURE
DATE
Businessacceptance
The above prices/specifications and conditions of work are hereby accepted by
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SITXMGT002 ESTABLISH AND CONDUCT BUSINESS RELATIONSHIPS-Project_Contract_Supplier
------------- authorised representative/owner of -----------------
This agreement shall become effective from ----------------
SIGNATURE
DATE
WITNESS NAME
SIGNATURE
DATE
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