Sample Service Agreement for Construction Monitoring

      SERVICE AGREEMENT TEMPLATE FOR BUILDING INSPECTION

 

                                                            YİBF ( BUILDING INQUIRY FORM) NO:……

 

Parties

ARTICLE 1-This agreement was entered into under following conditions between building owner named…………………or acting as his deputy named……………and on other hand, …….. permit certificate numbered building inspection authority titled………..  .

 

The parties under this agreement shall be referred to as “building owner” and “building inspection authority”.

 

Subject, place and quantity of commitment

ARTICLE 2-

This is the service to be performed by building inspection authority in order to examine project documents and the inspection services for constructional purposes in accordance with license and related appendices for building, pertaining to building owner in the province of ……., in the county of……, residing at the address of …………………………… and having construction area of total m2 of ….., ……floors including basements to be constructed on land registered to directorate of land registry under plot  no….., block no…. and parcel no…….  .

 

Period of service

ARTICLE 3-

The period of service shall start by signing agreement on the date of …../…../20…. and end upon receiving permit for residential usage license.

 

Whether the constructıon of the building is commenced or not within two years after receiving the building license and if building is not completed within five years within the permitting period and if license is not renewed within aforesaid period, this agreement shall be deemed as invalid without need for any notice to be given.

 

For completion of this building, the predicted period is …………….

 

Application projects and accounts issued by project authors are examined by authorized project and application auditor, architect and engineers to verify if those are in compatible with engineering and architecture project regulatory principles, construction plan, construction regulations of relevant administration and other current regulations, circular, specifications and standards within the period of .............

 

Value of service

ARTICLE 4- Building inspection service value includes any kinds of examination, inspection and testing fees together with project and building inspection.

 

Building inspection service value pertaining to this work,

Total building construction site: …………m2

( It is calculated pursuant to Article 1 of  Law numbered 4708)

Unit price of building during agreement year = …………………….YTL/m2

Approximate price of agreement year=  ……………………………YTL

(Total building construction site x unit price of building) ( ….m2 x ……….YTL/m2)

Value of service during agreement year= ………………..YTL

( Approximate price of building x rate of service value pertaining to predicted service period) (…YTLx……/100)

 

This determined amount, for buildings not exceeding (including) 1000 m2 of total construction site, shall be fully paid by building owner to the account of building inspection. Building inspection service value of buildings, of which total construction site exceeds 1000 m2, are deposited into account based on choice of building owner as fully or by instalments as set forth in Article 5 or by partial instalments. A copy of payment bill pertaining to that is submitted by building owner to the relevant government office and building inspection authority. Unless building owner pays his instalment in cash, permit for continuation of following section is not given by relevant authority. 

 

In addition to the service value during agreement year, at the end of each year, service value pertaining to unfinished works is determined again according to rate of approximate cost of building during application year and service value by taking level fact-finding report as basis in accordance with Form 21 attached to Regulations to be issued by building inspection authority along with building owner and building contractor or constructor’s supervisor acting on behalf of building contractor. Value differences arising from this situation are deposited by building owner into the account of building inspection. In case of dispute between parties in determining this rate, an application to the relevant authority is made and level determination is requested. Payment is made to building inspection authority over rate already determined and account is settled at the end of year.

 

If service period shown on building inspection service agreement is extended due to any kinds of reasons, extra service value on the complete work is paid according to service rates shown on Article 26 of Building Inspection Application Regulations for each six months due to time extension.

If service period shown on agreement decreases due to any kinds of reasons, said service rates are paid by decreasing at the rate of 5 % based on complete work for each six months due to time decrease.

 

Payment of service value

ARTICLE 5-Building inspection service value, as described in the following table, is paid to the building inspection authority by relevant government office along with merit report that is issued in accordance with Form 22 attached to Regulations.

 

 

Number of instalments

Scope

Qty

(%)

1

Project Examination Value to be paid upon license receipt

10

2

Part until excavation and upper base elevation

10

3

Part for Structural system

40

4

Part of building which is in ready status until surface coat including attic cover, filling wall, door and window frames, mechanical infrastructure  installation

20

5

Remaining building part along with mechanical and electric installation

15

6

The approval of work completion minute by relevant authority

5

 

Tasks and responsibilities of building inspection authority

ARTICLE 6

Building inspection authority is obliged to perform full tasks mentioned on Article 2 of the Law within periods determined by Law in accordance with construction plans, rules and standards of science, art and health, current legislation and occupational code of ethics.

 

Building inspection authority performs the following tasks at the stage of project examination;

  1. Building inspection authority checks whether constructional status certificate concerning the parcel of land where building shall be constructed, application chart, copy of deed registry, ground survey report and other required documents are in conformity with legislation or not, and files the copies of said documents.

 

 

  1. Building inspection authority checks that application projects and accounts issued by project authors are examined by authorized project and application auditor, architect and engineers in terms of compatibility with engineering and architecture project regulatory principles, construction plan, construction regulations of relevant administration and other current regulations, circular, specifications and standards. It is also audited that whether project authors have registry status certificate or not and author not having registry status certificate is disclosed to the relevant trade association.
  2. Building inspection authority certifies by determining that whether there is a ground survey report or not that is pursuant to principles related to ground issues and base survey report. In order to certify the compatibility of the report, said authority may purchase services from third parties in such cases that there is not a qualified technical employee within the structure of its Corporation.

ç)   Building inspection authority ensures elimination of faults, defects and deficiencies determined on projects that it examined based on project check form in accordance with Form 1 shown on Appendix 3

  1. In case that examined projects are deemed as appropriate, those project documents are signed by relevant auditor, architect and auditing engineers on behalf of the building inspection authority and certified by said authority.

 

Building inspection authority performs the following tasks at the stage of receiving building license;

 

  1. Building inspection authority issues details of building undertaken by said authority in accordance with Form 2 shown on Appendix 4 and files said details with the Ministry.
  2. Building inspection authority submits following documents to the relevant administration ; notary certified copy of permit certificate of building inspection, original of information form related to building certified by Ministry, letter of commitment in accordance with Form 3 shown on Appendix 5 concerning that building inspection is undertaken, contract in accordance with Form 4 shown on Appendix 6 that was signed between building inspection authority and building owner, project check form mentioning that deficiencies on project are eliminated.
  3. Building inspection authority ensures that after projects are certified by relevant administration, the part related to building inspection authority on building license shall be signed by building engineer, mechanical engineer, electrical engineer or architect who are representing the authority or who are given authorization by partners or authority.

 

  Building inspection authority performs the following tasks at the stage of construction;

 

  1. Building inspection authority submits work place delivery record in accordance with Form 5 shown on Appendix 7 to the relevant administration within three working days by signing together with building owner and building contractor or constructor’s supervisor acting on behalf of the contractor.
  2. In such cases that there is no technical employee within the structure of its Corporation, building inspection authority appoints technical employee by purchasing service and ensures that corner points of building land shall be determined by relevant administration and building shall be applied to the land based on location plan.
  3. Considering required construction techniques according to project that Building Inspection Authority undertakes, the said authority causes required materials and construction related to these materials to be examined and tested at laboratories pertaining to private and public corporations to which permit certificate is given by the Ministry, and the said authority checks whether the results are in accordance with standards and specifications.

ç)   Building inspection authority checks concrete forms, reinforcing steel and required other equipment and does not give permission for concrete pouring before issuing minute in accordance with Form 6 shown on Appendix 8. Concrete is poured under supervision of building engineer acting as application auditor or building engineer acting as checking staff or vice checking staff. Concrete samples are taken before building inspection staff at the site of pouring in accordance with relevant standards by technical staff of laboratory where the experiment shall be performed.

In case that the results of the experiments to be performed at site on samples taken are acceptable, concrete pouring is given permission by building inspection authority. Other samples taken are delivered to the laboratory by technical staff of this laboratory. Following concrete pouring, a minute is issued in accordance with Form 7 shown on Appendix 9.

 

  1. If results of experiment and examination mentioned on Clauses c and ç show values satisfying relevant standards and specifications, reports related to these results are attached to merit report covering that construction and submitted by building inspection authority to relevant administration. Otherwise, building inspection authority submits these reports to relevant administration within three working days since the date of issue at the laboratory and ensures that construction of building shall be postponed until faulty construction is rectified or corrected.
  2. Building inspection authority audits that whether each construction is built according to  location list attached to project and to the qualifications on contract entered into between building owner and building contractor.
  3. If any worker and/or craftsman acts contrary to license and related appendices in spite of the written notices, this situation is determined by building inspection authority and announced to the building contractor. In case this situation continues, written notice is submitted to relevant administration.
  4. Building inspection authority ensures that documents to be issued during electrical subscription of the building shall be checked by electrical engineers acting as auditors.

ğ)   Building inspection authority follows up building inspection notebook, on which results of inspection at site are written and which is kept at site by constructor’s supervisor, and is also in accordance with Form 8 shown on Appendix 10.

h) If materials to be used in construction works are determined to be non-conforming to relevant technical specifications and standards, these materials are not permitted to be used in construction and this situation is notified by report to the relevant administration and to the relevant corporations related to material auditing.

ı) Building inspection authority checks whether required precautions are taken or not in order to ensure worker’s health and work safety at building site and environmental health and safety.

i) Building inspection authority ensures that employed auditing architect and engineers together with checking staff and vice checking staff shall attend on-the-job training which is given by the Ministry and relevant trade associations.

j) Building inspection authority issues level fact-finding report describing physical state of the building together with building owner and building contractor or constructor’s supervisor acting on behalf of building contractor at the end of every year and submits the copy of this report to the relevant administration. In case that there is a dispute with regard to determination of end-of-the-year level determination, relevant administration is requested to perform the determination of level.

k) Building inspection authority audits projects and construction of additional works depending on the request of building owner providing that these additional works hold a license.

l) In case that construction contrary to license and related appendices are determined during performance of above mentioned tasks, current status of the building is determined by taking photos and warns building contractor by certified mail in the form of written notice that is also delivered to relevant administration, and gives a term in order to solve such deficiencies. In case that deficiencies noted to are not solved within this term, relevant administration is notified by certified mail within three working days following term end.

m) Submits to relevant administration, a copy of invoice to be issued on the date that progress payment pertaining to auditing works shall be payable.

n) For points required to be registered during continuation of constructional works, additional minutes are issued, auditing and observation are ensured on construction.

o) In case that there is not any fault or deficiency with regard to construction or materials, minutes already issued are submitted to the relevant authority attached to merit report. Otherwise, provisions of (I) paragraph of Article are applicable.

ö) Building inspection authority issues work completion minutes describing that building was partly or fully completed in accordance with license and related appendices and the minutes in accordance with Form 9 shown on Appendix 11, and submits the said minutes to the relevant administration for approval purposes.

p) Following receiving permits for usage purposes of the building, other information and documents pertaining to building inspection are submitted to relevant administration as those were required by said administration.

 

Tasks and responsibilities of building owner

ARTICLE 7- Building owner is personally or via authorized deputy acting as legal representative obliged to sign building inspection service agreement.

In such cases that building owner is also acting as auditor of building inspection authority; building inspection authority, to which building owner is acting as member of said authority, may undertake the auditing business providing that auditor acting as building owner shall not be deemed as charged person.

Building owner is obliged to pay instalments of building inspection service value on time.

Building owner may not ask for any construction, which is not available on project, location list, quantity survey and approximate cost of building, from building contractor and building inspection authority unless such construction has received a building license, and such requests are not fulfilled.

Building completed is not put into service unless building usage permit certificate is issued.

For buildings with building usage permit certificate, there can not be any changes made without receiving a license. After work completion minutes, describing that work is physically completed, are certified by relevant administration, building owner is deemed as responsible for changes performed thereafter.

 

Address of building inspection authority

ARTICLE 8- Building inspection authority is obliged to have a notification address in Turkey and to notify new address, if any to the building owner before signing agreement.

Address of Building Inspection Authority:

………………………………………………………………………………………………………………………………………………………………………………………………………………

 

List for Technical Employee to be appointed by Building Inspection Authority:

ARTICLE 9       

 

      Line no      Name and surname      Task     Auditor’s number   Chamber Registry number

5  

7

8

 

In case of one of the auditing architect, auditing engineer, checking employee or vice checking employee terminates his/her relationship with construction due to reasons such as death, illness, permit, resignation and etc., level fact-finding report, in accordance with Form 18 attached to Regulations determining the status at the time of  relationship termination, is issued by building inspection authority; the personnel, working within the structure of Corporation at the same status with auditing architect, auditing engineer, checking employee or vice checking employee, is temporarily employed within three working days. Level fact-finding report is sent to the relevant administration attached to petition with regard to temporarily appointing personnel. Starting from this date, any and all of responsibilities related to construction within period until a new appointment belong to temporarily appointed personnel. For new personnel at the same status appointed by building inspection authority within thirty working days following the termination of relevant personnel; level fact-finding report, in accordance with Form 18 shown on Appendix 20 describing the status of construction at the time of employment, is issued and thus the said status is notified to the relevant administration and Building Inspection Commission.

In case that new auditing architect, auditing engineer, checking employee or vice checking employee are not appointed within thirty working days following quit of personnel, building holiday minute is issued by relevant administration and it is not permitted for continuation of construction.

 

Termination of inspection (auditing) service

ARTICLE 10- Inspection service agreement ends on the date that the permit for usage of construction is received. However, upon written notice to building owner by building inspection authority that building is partly or fully completed and building is now ready in order to get permission with regard to usage of building and following approval of work completion minute by relevant administration describing that building is partly or fully completed in accordance with license and attached projects, construction site area of  said building is deducted from construction site under responsibility of auditing architect, auditing engineer, checking employee and vice checking employee together with aforesaid authority.    

In case that work completion minute issued by building inspection authority is approved by relevant administration, building inspection authority is not also required to sign permit certificate for usage of building at the stage of issue of permit certificate for usage of building; however, said authority is considered to accept all responsibilities arising from permit certificate for usage of building. When permit certificate for usage of building is issued, relevant administration notifies the authority.

 

Principles of annulment

ARTICLE 11-The principles of annulment for agreement entered into between building owner and building inspection authority are as follows:

In case that building inspection service agreement is annulled unilaterally or said agreement is annulled by mutual agreement of building owner and of building inspection authority, reporting of annulment process is made to the relevant administration, to Directorate of Settling and to other party by notary notification.

During annulment process, level fact-finding report is issued by building inspection authority and building contractor in accordance with Form 20 attached to Regulations and submitted for approval of relevant administration.

Building holiday minute is issued by relevant authority and all documents related to building ( such as notary certified copies of  information form related to building, license, merit report, correspondences related to annulment, level fact-finding report and building holiday minute) are sent to the Provincial Directorate of Public Works and Settlement attached to official opinion letter.

Continuation of building is not permitted unless a new building inspection authority is appointed.

New building inspection authority undertaking auditing responsibility of the building is joıntly and severally responsible with terminated building inspection authority due to the fact that, the audit of any kinds of acts and works, which were performed before the date of new employment, are completed in accordance with Law and Regulations.

 

Competent juridical authority

ARTICLE 12- For any kinds of disputes arising from performance of this agreement and related appendices, courts and execution offices in the province of ……… shall be deemed as competent. 

 

Miscellaneous provisions

ARTICLE 13-Law numbered4708 on Building Inspection, Law on Building Development, Turkish Commercial Code, Code of Obligations, Civil Code and relevant legislation provisions shall be respectively applicable for points not mentioned on this agreement.

Additional Article 14- Stamp Tax of Agreement

This agreement shall be subject to relative stamp duty according to 1/a numbered sub-clause under 1 numbered section headed with papers related to agreements of 1 numbered table attached to 488 numbered Law. Building owner is obliged to pay stamp duty to Tax Office at the rate of 7.5 ‰ over agreement value excluding V.A.T and receipt of this payment shall be given to building inspection authority. Building owner can also make payment to building inspection authority against receipt.

 

Furthermore; building inspection authority shall pay other 7.5 ‰ of stamp duty pertaining to payment in the form of deduction at the time that progress payments are made by relevant administration.

 

Calculation of stamp duty : …………… x 0.0075= ………………YTL

 

Additional Article 15- After approval of project related to building by Building Inspection Authority, copy of license issued by relevant administration, 1 set of project copies certified by administration ( static/static account report/ architectural/mechanical installation/heat insulation report/electrical installation) and introduction writing outlining the date for commencement of building shall be respectively submitted by building owner in return for its signature to building inspection authority, and following above mentioned points building audit service shall start.

 

Additional Article 16- Private technical specifications and related appendices issued related to building shall be deemed as integral part of this agreement following approval of Building inspection authority. In case that there is no technical specifications related to building, relevant provisions of law related to materials and workmanship to be used in building shall be applicable.

 

Additional Article 17- Any kinds of Law, Regulations and Circulars issued based on Labour Act during construction shall be obeyed by Building owner and contractor. In addition, building owner and building contractor, for the purpose of ensuring safety of labour and worker, shall appoint technical personnel qualifications prescribed by relevant legislation. Details with regard to that shall be notified to administration and building inspection authority in writing. In case that notification is not made, all responsibility shall be undertaken by building owner.  

 

 

 

This agreement was issued in _______ copies on the date of ……./……./20…

 

 

Building Owner or legal deputy                       Authorized person of Building Inspection Authority

(signature)                                            (signature)