The Cabinet has approved, today, a model residential contract which will be beneficial for individuals constructing small houses, following the request of the Prime Minister, Mr Pravind Kumar Jugnauth, to bring a relief to home owners, highlighted the Minister of National Infrastructure and Community Development, Mr Mahendranuth Sharma Hurreeram, in a statement to the Government Information Service, in Port Louis.
Minister Hurreeram pointed out that the contract is not compulsory and has been put in place for the benefit of small home owners. The contract will comprise a clause whereby the contractor will have to respect a defect liability period of 180 days in case there are defects in the construction and therefore address the issue, he emphasised.
He recalled that earlier there were only verbal agreements between owners and contractors adding that this contract will be useful in case of disputes.
The contract will include amongst others cost of works, completion of works, as well as other important factors in the construction works.
Here is the cabinet decision:
Cabinet has taken note of a Model Contract Agreement for House Construction produced by the Construction Industry Development Board (CIDB). One of the functions of the CIDB is to develop standard forms of construction agreements and contracts. The Model Contract Agreement is meant especially for house construction works, but might be adapted to suit any small works, other than house construction. It spells out the basic undertakings and responsibilities of each party, such as the scope of works, contract price, payment terms, completion period, remedying of defects and dispute resolution procedures.
