Construction Business Contract
1. THE CONTRACT IS BETWEEN
Party A:
Chief Executive Officer
Name: Muhammad Qasim Mughal
Address: D-13 St#14 phase#1 Naval Housing Scheme Karsaz Karachi
Phone No: 0300-3467417
Email: amins16@[Link]
CNIC:
Party B:
Director Operations and Admin
Name: Muhammad Arsalan Wasim
Address: B-335 block-13 F.B area Karachi
Phone No: 0321-9033049
Email: [Link]@[Link]
CNIC: 17301-0876450-3
Party C:
Project Director
Name: Ali Ahmed Sheikh, Ahmed Ali Sheikh and Sudan Durani
Address:
Phone No:
Email:
CNIC:
2. THE BUSINESS
Name of business: Construction, infrastructure developments, Interior Décor
Business only on mutually executed Projects
Business Model/Activity: Construction solutions which includes different types of
construction related items, labour and services and pure civil work to be
rendered/supplied/constructed for the end users or organizations.
3. LEGAL STATUS
This is a partnership contract for the three above mentioned parties (A, B & C).
4. SHARE BREAKDOWN
Profit sharing Party A Party B Party C
40% 20% 40%
5. INPUT INTO BUSINESS
1. Party A:
a. Project Lead/Referral/ negotiation with clients
b. Sales and Business Development
c. Contracting and completion/closure of the Project and contracts
d. Clearance of Cheque/payment from the organizations
e. Releasing of Security deposit and retention Money
f. Bilal Amin Mughal CNIC# 42301 3904667 9 on behalf of CEO will be co
coordinating with all parties and customer for smooth execution and timely
execution of the project.
2. Party B:
a. Coordinator, Sourcing, Execution and Financing
b. Ensure presence at Site on daily basis
c. Administration and coordination
d. Total record keeping, delivery orders, receipts on site, billing, tax problems
reconciliation, expense management
e. Responsible for verification of all third party quotations from the market,
processing of bills and implication of taxes.
f. Responsible for rendition of annual return every year.
g. Verification of rates of labor, material and engagement of outsourced
services etc.
3. Party C:
a. Shall be responsible to provide all financial support required for the projects
b. Sourcing, arranging and engaging resource at Project Sites
c. Execution, operations and timely completion of contracts.
d. Must be present at site daily for the progress.
6. BANKING:
1. Any party cannot terminate the contract during execution of any project awarded
as a result of this MOU or any agreement as result of this MOU.
2. All parties shall provide “Two Months of intimation and notice period” for
termination of the contract in case no project is in hand.
3. Profit is defined as revenue minus all company expenses. Mr. Arsalan Waseem
being Admin Head will consolidate details of all company expenses duly
approved by CEO Muhammad Qasim Mughal as mutually agreed by all Partners
under the head of admin expenses.
4. The profit-sharing formula is documented as follows:
Business Activity Responsible Sharing
Partner
Project Lead /Referral A 10 %
Financing C 10%
Business Development/Contracting A 20%
Administration B 10%
Sourcing B&C 20 %
Execution B&C 20 %
Closure/Recoveries A 10%
7. PROFITS DISBURSEMENT:
1. Profits shall be disbursed after receipt of payments from client as per scheduled payment
milestone in contract.
2. Any funds to be given as profit share, from Pakistan Navy projects, to third parties
working in the company or any outside consultants shall be treated as company expense
and shall be done in mutually agreed basis.
3. The above documented formula and any funds disbursed as profit share are to be treated
strictly confidential between all partners is not to be shared with any third parties
4. The profit-sharing agreement is applicable only to projects and payments related to
mutually agreed projects, and does not extend to any other business activities,
engagements, or contracts being undertaken by M/S The Decorum, unless
Consultants/Working Partner/Financer is involved in any such endeavor on mutually
agreed basis.
5. This agreement does not directly or indirectly imply any ownership in M/S The
Decorum of Consultants/Working Partner/Financer or any third parties, and company’s
ownership unconditionally remains with Muhammad Qasim Mughal and after him his
designated heir or dependents
6. A company account titled “M/s The Decorum” duly operated by Consultants/Working
Partner/ Muhammad Qasim Mughal (CNIC # 42301-8981214-3), s/o Mr. Muhammad
Amin Mughal will be opened in local and foreign banks. No payments are to be
expensed without signatures and mutual consent of Consultants/Working
Partner/Financer.
7. In case Consultants/Working Partner/Financer decides to leave the company as working
partner/consultant/Financer, or in case of any eventuality, any payments emanating from
projects started with and through him shall still be honored in his favor on their
successful completion to his designated heir or dependents.
8. CONFLICT RESOLUTION
The conflict will be resolved by a table talk or else any two parties agreeing on
one point will be acceptable for the third party
9. MISC. TERMS
a. All business accounts shall be updated on weekly basis.
b. No payments in excess of 2 Lacs without consent of other parties.
c. All monies taken the previous day must be banked on a daily basis.
d. Shareholders are not allowed to withdraw wages.
e. Profit distribution at the end of the project.
f. All the three parties are only allowed to withdraw from the partnership once all
the ongoing projects are completed.
g. Any outsourced services, hiring or engagement will be duly agreed/signed by all
partners and approved by the CEO.
h. All bills are to be jointly signed by all partners and duly approved by CEO.
10. DATES:
Contract Start Date: 5th October 2020
Contract End Date: 2 years subject to mutually extended period mutually agreed by all
partners
11. PROJECTS IN HAND
Following projects are included under this formal partnership:
1. Construction of 136 houses allotted to DINSONS by Pakistan Navy at PNWHS
Gharo (Project partially approved)
2. Civil and interior design works inclusive of outsourcing arrangements at PAF
Korangi Base for undertraining classrooms (Project not yet approved) Furniture
is not included under this contract.
3. Civil and interior design works inclusive of outsourcing arrangements with regard
to Army unit at Hyderabad (Project not yet approved)
4. Infrastructure development at PNWHS Gharo (Proposal under process)
5. Any future contract will be included in annexure A to this document.
12. SIGNATURES
Party A: Party B:
Full Name: Muhammad Qasim Mughal Full Name: Muhammad Arsalan Wasim
Date: Date:
Party C:
Full Name: Ali Ahmed Sheikh , Sufyan
Durani and Ahmed Ali Sheikh
Date:
Witness 1: Witness 1:
Full Name: Full Name:
Address: Address:
Phone: Phone:
National ID No: National ID No:
Date: Date:
