The Reico — Terms & Conditions

Contract Terms Purpose
At their core, standard terms and conditions provide a framework for managing construction projects. These clauses define how risks, obligations, and rewards are allocated among the parties involved.
While the specifics can vary depending on the project and jurisdiction, the following components are commonly included:
•	Scope of Work: What services or products will be delivered.
•	Responsibilities: Who does what and when.
•	Timelines: Key dates, deadlines, and milestones.
•	Payments: How and when money changes hands.
•	Risk Allocation: Who bears liability for various risks.
These terms ensure that all parties are aligned, reducing ambiguity and helping prevent disputes. A well-drafted contract serves as a roadmap and a safeguard against unexpected challenges. 

For example, instead of vaguely stating, "Build a house," it should detail, "Construct a 3-bedroom, 2-bathroom house with brick veneer exterior, per approved architectural drawings."
Why It Matters: A vague SOW can lead to scope creep—where additional tasks not accounted for in the contract create disputes and strain resources.
Payment Terms
Payment terms clauses ensure everyone gets paid fairly and on time. They cover how and when payments are made, including progress payments (after completing parts of the project), final payments, and retainage (money held until all work is verified as complete). Clear terms help avoid cash flow problems and payment disputes.
Project Timeline
A solid timeline keeps everyone accountable. This section sets out the project start and finish dates, key milestones, and what happens if delays occur. Delays might be excusable (like bad weather) or non-excusable (like poor planning), and the contract should address how these situations are managed.
Example: If adverse weather causes delays, the contract should specify whether the timeline can be extended and what documentation is required.
Force Majeure
Unexpected events—like natural disasters or pandemics—can disrupt a project. A force majeure clause protects all parties by allowing for timeline extensions or adjustments when something completely out of their control occurs.
For instance, during COVID-19, many contractors relied on this clause to avoid penalties for delays caused by lockdowns.
Change Orders
Changes to the project scope are almost inevitable. A change order clause ensures there's a clear process to request and approve these changes, covering any additional costs or time required. Without this, disputes over who pays for extra work can quickly escalate.
Dispute Resolution
Disputes happen. This section outlines how conflicts will be resolved through mediation, arbitration, or court. Mediation is often a quick, low-cost way to reach an agreement. At the same time, arbitration or litigation might be necessary for more serious disagreements.
Termination
The contract termination clause explains when and how a contract can be ended. For example, suppose one party fails to perform their duties or goes bankrupt. In that case, the other party might have the right to terminate the agreement. It also lays out what happens financially if the contract is cancelled early.
Why Contract Terms Matter
Imagine a scenario where a supplier fails to deliver materials on time, causing project delays. If your contract includes a well-drafted force majeure clause, you can negotiate an extension.
Conversely, suppose the delay isn't covered by force majeure. In that case, your understanding of liquidated damages can help you calculate penalties and recover losses.
Similarly, clear warranty terms can save you from footing the bill for defective materials or workmanship. These examples highlight the importance of knowing your contract inside out.
Tips for Managing Construction Contract Terms and Conditions
Understanding and managing contract terms and conditions can be manageable. With a clear approach, you can protect your project from risks and keep things running smoothly.
•	Understand Key Clauses: Always review critical sections like payment terms, dispute resolution, and variations. These clauses can significantly impact project outcomes.
•	Seek Expert Advice: Consult legal or contract administration professionals if you're unsure about any terms.
•	Communicate with Stakeholders: Ensure all parties understand their responsibilities. Miscommunication is a common source of disputes.
•	Document Everything: Keep thorough records of correspondence, approvals, and changes. This creates a paper trail in case of disagreements.
Common Mistakes to Avoid in Construction Contracts
Neglecting to Read the Fine Print
Failing to thoroughly read the entire contract can lead to unpleasant surprises later. The fine print might bury key details about payment schedules, penalties, or dispute resolution.
For example, a clause might stipulate a strict timeline for raising claims or variations—missing this could forfeit your rights. Always take the time to review the document, preferably with legal or administrative support, before signing.
Overlooking Risk Allocation
Contracts are all about distributing risks between the parties involved. Some agreements may push disproportionate risks onto one party, such as holding the contractor liable for delays caused by the client.
Without a fair distribution of risks, one party could suffer unnecessary losses. Always ensure the terms of the contract clearly define responsibilities and allocate risks in a balanced manner.
Relying on Verbal Agreements
In construction, relying on verbal agreements can be a recipe for disaster. While informal agreements may seem quicker or easier, they are rarely enforceable in case of a dispute. Always document any agreements, approvals, or variations in writing and ensure all relevant parties sign them.
Focusing Only on Price
While costs are a critical consideration, focusing solely on price during contract negotiation can be short sighted. Choosing the lowest bidder without assessing their capabilities or ignoring long-term risks can lead to subpar work, delays, or disputes. Evaluate the contractor's experience, financial stability, and ability to deliver quality results in addition to pricing.
Final Thoughts: Building on Solid Contractual Ground
Understanding contract terms and conditions isn't just about avoiding problems—it's about setting your project up for success. A good contract builds trust, ensures everyone knows their responsibilities, and keeps the project running smoothly. Whether it's clearly defining the Scope of Work, fairly dividing risks, or planning for unexpected issues, every term plays a key role in your project's foundation.
So, the next time you review or sign a contract, consider it more than just paperwork. It's your guide to delivering a successful project with fewer headaches.
Legal Disclaimer
Each construction project and business situation is unique, and we strongly advise seeking professional legal counsel for individual concerns and legal document creation.
Understanding Terms & Conditions
In the construction industry, Terms and Conditions (T&C) play a crucial role in establishing the legal framework for interactions between stakeholders, contractors, and project owners. The T&C define the rights, responsibilities, and limitations involved in construction projects, ensuring clear guidelines and expectations for all parties involved. It is essential to tailor the T&C according to the unique nature of each construction project, taking into account factors such as project scope, delivery timelines, payment terms, and dispute resolution mechanisms. Legal advice from industry-specific professionals is highly recommended to ensure the T&C align with the legal requirements and best practices within the construction sector.
Key Considerations for Construction T&C
In the construction industry, a comprehensive T&C document should address a wide range of crucial aspects, including project scope and specifications, payment terms, warranties and guarantees, intellectual property rights, dispute resolution procedures, liability limitations, and compliance with industry regulations and standards. Crafting a robust T&C policy tailored to the construction sector can help mitigate legal risks, protect the interests of all parties involved, and establish a foundation for successful project execution. 




Terms and Conditions
The Reico (hereinafter referred to as “The Reico Company”, “Company”, “we”, “our” or “us”) is engaged in the business of providing consultancy and execution of residential/commercial construction & interior work/designing services and other incidental services (“Services”).
These terms of use describe and govern the terms and conditions on which the Client (“Client” or “you”,” your”) can obtain Services from the Company (referred to as “Terms”). By accessing and using our construction/interior solutions and services, you acknowledge that you have read, understood and agreed to be bound by the terms and conditions governing construction/interior design projects undertaken by The Reico. The Client acknowledges that these documents may be updated periodically, and it is the Client’s responsibility to review the Terms and Conditions regularly. Continued use of the Service after any such changes constitutes acceptance of the new Terms and Conditions and Privacy Policy.
•	1.Project and Order
•	
o	1.1.Project and order : A project refers to home design undertaking for a single home. Multiple orders can be placed for a single project (for e.g., one order for modular products, a separate one for services such as civil work). Payments and execution timelines are processed on an order level. The minimum order value that will be executed by The Reico Company shall not be less than INR 1.5 lakh.
o	1.2.Estimated project quote: This quote is indicative and generated based on your current requirements. As a quote is affected by the design, product, materials, colours and services you choose, it is subject to change. Please speak to your designer to understand how she/he can work around a budget.
o	1.3.If the project scope or value is changed at the execution stage, then any free gift(s)/discounts offered during the time of sale shall stand withdrawn.
o	1.4.Amendment of BOQ post publication: Upon the mutual agreement and finalization of the quote between The Reico Company and the Client, the quote shall be considered complete and definitive. Once the project reaches the execution stage, no changes shall be made to the quote, regardless of whether the value of the changes or items proposed is similar to those in the finalized quote. The Client agrees that the finalized quote accurately reflects the scope of work, materials.
•	2.Payment Terms
•	
o	2.1.Booking Fee and Refunds
o	
	2.1.1A project can have multiple order types based on the type of scope of work (e.g a single project can have multiple orders like modular work, on-site services and store products). Payment terms will vary on order level.
	2.1.2Booking fee: Your booking fee (10% payment) is adjusted against future orders.
	2.1.3Refunds: Once the project is booked, you are provided with a 72-hour free look window during which you may choose to cancel the project. After this window, no refunds will be provided if the project is cancelled.
o	2.2Payment Schedule
o	
	2.2.1Payment terms shall be based on and shall vary on order level.
	
	Order Type
	Booking Fees
	Place Order
	Execution stages / Prior to Product Delivery
	Modular
	10%
	40%
	50% (Before modular delivery and installation)
	On - Site Services
	10%
	40%
	50% (before final snag completion)
	Store Product
	10%
	90%
	N/A
	Custom Furniture
	10%
	40%
	50%
Booking Fee shall be paid on total order value. For more information on the payment schedule and execution stages please refer to the FAQ/Help section.
	2.2.2If the scope of your project increases significantly, you shall be required to pay 10% for the new scope before the design can begin.
•	3.Quote Validity
•	
o	3.1.The prices quoted in the proposal are valid for 21 days only, prior to the payment of the 10% booking amount.
o	3.2.Once the 10% booking amount is paid by the Client, the prices will be locked for 60 days. However, if the project does not proceed to execution within this period, the prices may change.
o	3.3.Any modifications to the proposal, such as changes in scope or requirements, may result in a change in price. Please note that these prices are specific to this project.
•	4.Delivery
•	
o	4.1.Estimated Delivery Timeline
o	
	4.1.1Your order will be delivered on or before the assured Handover Date except in cases when the order or the scope of work is changed after confirmation or due to reasons beyond the control of The Reico, including force majeure events and change in applicable law.
	4.1.2An estimated delivery timeline will be provided within 5 days of order placement subject to the scope of work.
	4.1.3The approximate Delivery Time of the Project from the time of placing the order is as follows –
o	Delivery Timeline
o	
	Project Value
	Number of Days
	0-10 Lakhs
	45
	10-20 Lakhs
	75
	20-30 Lakhs
	90
	30-50 Lakhs
	120
	50-100 Lakhs
	180
	>100 Lakhs
	depends
o	4.2.Pre-Conditions for on time delivery (Delivery Guarantee)
o	
	4.2.1.The Delivery Guarantee shall not be applicable in the following cases.
	
	a.If the site has restrictions on work timings during the day.
	b.If the Client is not in full possession of the site and temporary possession has been allowed by the builder.
	c.If there is concurrent work being done at the site by any other third-party contractor like painting, wallpaper, wooden flooring or carpentry work, during installation, civil works.
	d.If there are any changes to designs after the order is in production.
	e.If the Customer is living at the site at the time of installation.
	f.Abnormal hindrances in execution like continuous lack of power, non-working lifts, no permission from builder, etc.
	g.If any litigation related to the property, site or any other issues related to the client or builder, or any third party disrupts the work of Company.
	h.A Force Majeure event occurs. (A Force Majeure event refers to the acts of God including; such as flooding, hurricanes, earthquakes, lightning, any natural calamities etc., environmental conditions such as air pollution, solvent exposure, mold, mildew etc., or staining from foreign substances such as dirt, grease, oils, sprays etc. fire, acts of war, acts of terrorism, pandemic, lockdown, acts of Government or any other event which is beyond the control of Company ).
	i.If the client does not respond to the payment link or make payment within 48 hours of its generation, it may adversely impact the Delivery Guarantee. Company reserves the right to adjust the project schedule accordingly.
	j.Store furniture’s delivery timeline shall be shared on a case-to-case basis to the Client.
•	5.Order Placement and Execution
•	
o	5.1.Order placement Stage: At this stage, orders for The Reico furniture and decor items are placed, and the marketplace furniture and decor items are shipped to the warehouse to prepare for delivery onsite. Civil work and manufacturing of custom furniture will be initiated as per defined execution stages. Please note all work specific to an order will begin only after the 50% payment has been processed.
o	5.2.Execution stages: Execution stages help us track the progress of your order. They mark the completion of an important activity at which balance payment (for that order type) will be due. Interior Company shall proceed with completing the rest of the order only after the amount due for that execution stage has been paid for. The following table defines execution stages for the different types of orders.
o	
	Item
	Execution Stage
	Order type 1 - Services such as civil work, custom furniture
	Based on the scope of your project, 50% of your order value (s) will be due.
	Order type 2 - Marketplace furniture, decor items, modular products (such as kitchen).
	Execution Stage
o	5.3.Modular Delivery & Warehousing: For projects where the Reico scope only includes modular products, our team would request the customer to confirm the material delivery date according to the readiness of the site with civil work completed. The material will be dispatched once services on site are completed, and final payment is made. In case of the site not being ready, the material would be stored in the warehouse for up to 10 days beyond the planned delivery date, after which warehousing charges would be applicable, at Rs 500 per day until the actual dispatch date.
o	5.4.Unloading Services – Any movement of materials by stairs above 2nd floor will attract the following additional charge/s:
o	
	a)A fixed unloading charge of Rs. 5000 shall be charged for the movement of material from 3rd floor and above where the service lift is unavailable
	b)An additional charge of Rs. 1000 will be applicable for each floor movement of material from the 9th floor and above, where the service lift is unavailable.
•	6.Delay Penalties
•	
o	6.1.The Reico Company will be liable to pay a delay penalty @ INR 500 per day for delay in handover of the project beyond 15 working days (excluding Sundays and Public Holidays) from the confirmed Handover Date. The confirmed Handover Date is communicated in the Client Service Agreement; however, it is linked to all payments made by the client as per the schedule and all sales orders for the project are raised
o	6.2.Delay penalty is only applicable if all the norms as per Company Delivery Guarantee is fulfilled.
o	6.3.The maximum delay penalty payable cannot exceed 3% of the total project value.
o	6.4.Delay penalty would be paid out through a refund to the customer's bank account provided the client has paid 100% of the Project Amount as per schedule and Completion of Handover.
o	6.5.Delay Due to Restricted Access: The Client has the obligation to provide free, complete, unrestricted access and handover of the site where the construction/interior work has to be executed. In case of delay in the above or subsequent disruptions in access or freedom to execute the work by the Company and/or its employees/ teams, the agreed Handover Date and the delivery timeline shall stand terminated with immediate effect.
o	6.6.A new Handover Date and delivery timeline shall be negotiated and mutually agreed upon by both Parties. The Company shall not be liable to pay to the Client any delay penalty in such scenario.
•	7 .Invoicing
•	
o	7.1.Invoices for the design service, products and other services shall be raised by The Reico.
o	7.2.Product invoicing for all branded products will be done by the authorized sellers/distributors of such products. For any queries, please get in touch with your Company representative.
•	8.Notices
•	
o	All legal notices and communications intended under these Terms & Conditions should be sent to: info@thereico.com . We reserve the right to update this contact at any time; notice of any change will be communicated here in these Terms and Conditions.
•	9.Governing Law, Jurisdiction and Dispute Resolution
•	
o	9.1.In the event of any dispute or disagreement between the Parties regarding the interpretation of this Agreement, performance of obligations, or any other matter arising from this Agreement, the Parties shall first attempt to resolve such disputes amicably through mutual discussions or negotiations. If the dispute remains unresolved within thirty (30) days of written notification by one Party to the other, the matter shall be referred to and resolved through an appropriate Dispute Resolution Institution in India.
o	9.2.The Dispute Resolution proceedings shall be conducted either electronically or through physical hearing, in accordance with the Rules of such Dispute Resolution Institution and in compliance with the Arbitration and Conciliation Act, 1996. The proceedings shall be conducted in English, and the jurisdiction shall be Delhi.
o	9.3.The award passed by the Dispute Resolution Institution shall be final and binding on the Parties and the Parties agree to be bound thereby and to act accordingly. The award shall be enforceable in any competent court of law.
o	9.4.This Agreement will be governed by laws prevailing in India and this Agreement shall be subject to the exclusive jurisdiction of the courts at Delhi.
•	10.Financial Services
•	
o	The REICO only facilitates financial loans and services. Approval, processing and terms are at the sole discretion of the financial entity.
•	11.Returns, and Replacements
•	
o	11.1.Pre-Order Placement: Any product in the tentative BOQ can be replaced or removed while the Client is discussing designs with the Company team i.e., before order placement.
o	11.2.Post-Order Placement: The Company cannot cancel, replace or modify items once the order is placed since each item is made to order.
o	11.3.OEM Replacements: OEM (Original Equipment Manufacturer) replacements due to functional defects found at the time of handover are outside the Delivery Guarantee. The replacements will be done free of cost based on the OEM timeline and The Company will facilitate the replacements. Eg. hardware, appliances like hob and chimney, accessories, colour mismatch or scratches in handles, etc.
o	11.4.Marketplace Products: All furniture, decor, appliances and accessories which belong to the Company’s brand partners are referred to as “Marketplace Products”. Products with non-manufacturing defects and damage post-delivery are not eligible for returns or replacements.
o	11.5.The return and replacement policy is not applicable to services, customized products and made-to-order furniture pieces.





Terms and Conditions Additional Clause
Quotes and Estimates
All quotes and estimates provided by The Reico are valid for 30 days from the date of issue. Any changes in the scope of work may result in a revised quote.
Payment Terms
Clients are required to make payments as per the payment schedule outlined in the agreement. A deposit is required to commence work, with subsequent payments due at various project milestones. Full payment must be made upon project completion.
Changes and Modifications
Any changes or modifications to the project scope must be agreed upon in writing. Additional charges may apply for changes requested after the initial agreement.
Client Responsibilities
Clients are responsible for providing accurate information and access to the property as required for the execution of the project. Delays caused by the client may impact project timelines and costs.
Warranties and Guarantees
The Reico offers a 3-year warranty on products and a 1-year warranty on services, covering defects in materials and workmanship. This warranty does not cover damages caused by misuse, neglect, or unauthorized modifications.
Confidentiality
The Reico respects the confidentiality of our clients. We will not disclose any personal or project-related information to third parties without prior consent.
Liability
The Reico is not liable for any indirect, incidental, or consequential damages arising from the use of our services. Our total liability is limited to the amount paid by the client for the services provided.
Termination
Either party may terminate the agreement with written notice. In the event of termination, the client is responsible for payment for all services rendered up to the termination date.
Governing Law
These terms and conditions are governed by the laws of the jurisdiction in which The Reico operates. Any disputes will be resolved in the courts of this jurisdiction.
Amendments
The Reico reserves the right to amend these terms and conditions at any time. Clients will be notified of any changes.
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