The Contract for Construction and Lease of Plant Agreement is one that is entered into by two companies for the purpose of construction of plant by one company and subsequently leasing it back to the company. In this agreement there are two companies where one company is providing the contract for construction of a plant to another company and the second company leases the property back to the first company after completion of construction.
The agreement provides the terms of contract that are mutually agreed by both the companies. The terms in the agreement include all the specifications of construction of the plant, equipment, construction material used, rate of construction etc. Apart from this the agreement also specifies the clauses related to the provision of materials, equipment and acquisition of construction permit from government authorities by the first company. Lastly the second part of the agreement entails details of the leasing terms for leasing back the constructed plant by the second company and terms thereof.
[Also Read: Lease Agreement]
Sample Contract for Construction and Lease of Plant Agreement
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