How to choose a building contractor in Dhaka: what to check before you sign
Eight checks, one contract checklist and the red flags to walk away from. Written for homeowners, developers and company owners building in Dhaka.
Short answer: choose the contractor who can show a valid trade licence, finished projects like yours that you can visit, named engineers, an itemised BOQ and a contract that ties payment to inspected milestones. Price comes after those five.
In this guide
The 8-point pre-signing checklist
Tick each item as you confirm it. If you cannot tick one, ask the contractor to fix it in writing before you sign.
How to read and compare quotations
Three lump-sum prices tell you almost nothing. Ask every bidder for a Bill of Quantities (BOQ) built on the same drawings, then compare line by line.
| Check | What good looks like |
|---|---|
| Scope | Civil, electrical, plumbing, sanitary and finishing are each listed, with exclusions stated. |
| Rates | Quantity, unit and rate for each item, not a single total. |
| Materials | Brand and grade named for cement, rebar, bricks, tiles, fittings. |
| Provisional sums | Clearly marked, with who bears overruns. |
| Validity | Price validity period given, since rebar and cement prices move. |
The lowest bid often leaves items out and wins them back later through variations. The best value is the most complete quotation at a fair rate.
What the evidence behind a contractor looks like
When you vet anyone, including us, look for documents rather than claims. For example, CitySpace's public-sector work includes LGED completion certificates, and its quality and safety systems are certified to ISO 9001:2015 and ISO 45001:2018.
Contract clauses you should not skip
Payment schedule tied to milestones
Pay in stages against inspected work (foundation, each slab, masonry, finishing), not against dates. Keep any advance modest.
Timeline and delay damages
State the start date, completion date and a daily penalty for contractor-caused delay. Also state what counts as a valid extension, such as heavy rain or late client approvals.
Variation orders
Any change in scope must be priced and approved in writing before the work is done.
Retention and defects period
Hold back a percentage until the defects liability period ends, so snags and leaks are fixed after handover.
Materials and testing
List approved brands, require test reports for concrete and rebar, and give yourself the right to reject non-conforming material.
Insurance, safety and dispute resolution
Check who is responsible for worker safety and third-party damage, and how disputes are resolved. For high-value contracts, have a lawyer review the document.
Red flags
Turnkey or client-supplied materials?
With a client-supplied contract you control brands and pricing, but delays in your purchasing become delays on site. With a turnkey contract the contractor handles labour, materials and coordination under one price, so one party owns quality, cost and schedule. Neither is wrong. Decide early and write it into the contract, including who pays for wastage.
Frequently asked questions
How much advance should I pay a contractor in Dhaka?
Keep it modest and tie later payments to completed, inspected milestones. Never pay in full ahead of progress.
Should I buy materials myself or let the contractor supply them?
Both work. Client supply gives control but adds delay risk. Contractor supply (turnkey) gives one point of responsibility. Put the choice in writing.
What documents should a contractor show before signing?
A valid trade licence, company details, completed project references, key engineer profiles, safety practices and, where relevant, ISO 9001 quality certification.
What is a BOQ and why does it matter?
A Bill of Quantities lists every item with quantity, unit and rate. It lets you compare quotations fairly and avoids disputes about what is included.
This guide is general information, not legal advice. Requirements and approvals vary by project and authority, so confirm current rules with RAJUK, the relevant city corporation and a qualified lawyer or engineer.