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Hiring a Contractor in Nepal: Thekka Types, Rates & Agreement Checklist

Labour thekka or full contract? This guide explains the contract types used in Nepal, how rates work, red flags to avoid, and a written agreement checklist that protects your money.

The Decision That Makes or Breaks the Build

Ask anyone who has built a house in Nepal what they would do differently, and the answer is usually about the contractor. The design can be perfect and the budget realistic — but the wrong thekka arrangement, or a handshake deal with no paper, turns construction into years of stress. Here is how the contract types actually work, and how to protect yourself.

The Three Common Thekka Types

1. Labour contract (ज्यामी ठेक्का) — the contractor supplies only labour and workmanship; you buy all materials.

  • Pros: full control over material quality and brands; usually the cheapest route if you can manage it.
  • Cons: you (or your engineer) must order, check and store materials constantly; delays in your supply become the contractor's excuse.
  • Best for: owners with time, a trusted supervising engineer, or family in construction.

2. Full contract with materials (सम्पूर्ण ठेक्का) — the contractor supplies labour and materials for a fixed rate per sq ft or lump sum.

  • Pros: one point of responsibility, predictable price, faster.
  • Cons: the contractor profits from cheaper materials — brands, grades and quantities must be locked in writing; quality supervision is essential.
  • Best for: busy owners — but only with a detailed specification and independent supervision.

3. Item-rate contract — you pay agreed rates per unit of measured work (per m³ of concrete, per sq ft of plaster) against a BOQ.

  • Pros: fairest for both sides; you pay for exactly what is built.
  • Cons: needs proper drawings, a BOQ and measurement checks — engineer involvement is a must.
  • Best for: owners working with a design firm or consulting engineer.

How Rates Are Quoted (Indicative, 2082/83)

  • Labour-only thekka is commonly quoted per sq ft of built-up area — the rate varies with the finishing scope (structure-only versus structure + finishing labour), location and access.
  • Full contracts are quoted per sq ft including materials — the range depends almost entirely on the specification you lock in.
  • Treat any rate quoted before drawings exist as a rough placeholder, not a commitment.

Red Flags When Choosing a Contractor

  • No verifiable completed projects you can visit, or unwillingness to share past client contacts.
  • A quote dramatically below others — the gap is usually recovered through material cuts or mid-project renegotiation.
  • Reluctance to sign a written agreement or to work against a BOQ.
  • Demanding a large advance before mobilisation.
  • No licensed engineer or mason certification behind the workmanship claims.

The Written Agreement — Your Checklist

  • Scope: exactly what is included and excluded, referenced to the drawings and BOQ.
  • Materials: brands, grades (e.g. cement grade, rebar brand) and who supplies what.
  • Price & payment schedule: stage-wise payments tied to completed, verified work (never to dates alone). Hold a retention (commonly 5–10%) until defects are fixed.
  • Timeline: start and completion dates, with a per-day/week delay clause.
  • Supervision & testing: right to inspect, cube tests for concrete, and who bears the cost of failed work.
  • Site facilities: who pays for water, electricity, storage and safety measures.
  • Variations: how changes are priced and approved in writing before execution.
  • Dispute resolution: a named process before anyone reaches for a lawyer.

The Bottom Line

Choose the thekka type that matches the time and expertise you can give the project: labour contract if you can manage materials, item-rate with a BOQ if you have an engineer, full contract only with a locked specification and independent supervision. And whatever you choose — get it in writing, tie payments to verified work, and keep a retention. At VastuVeda Designs we prepare the drawings, BOQ and specification that make any of these contracts enforceable, and supervise the work so the house you get is the house you were promised.

Tags: contractor nepal thekka labour contract construction agreement thekedar boq construction tips nepal

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Rachana Budathoki

Written by

Rachana Budathoki

Lead Architect

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Frequently Asked Questions

In a labour thekka the contractor supplies only labour and you buy all materials, giving you quality control but more management work. In a full thekka the contractor supplies labour and materials for a fixed rate — easier, but material brands and grades must be locked in writing. The right choice depends on your time and support. With a trusted supervising engineer or construction-savvy family, a labour thekka usually delivers better quality per rupee. Without that time, a full contract works — but only when the specification (cement grade, rebar brand, tile budget, fittings) is written into the agreement, because the contractor's profit otherwise comes from quietly cheapening exactly those items.
Pay stage-wise against completed and verified work — e.g. after foundation, after each slab, after brickwork, after plastering — never against calendar dates. Keep the advance small and hold a 5–10% retention until defects are fixed after completion. Payments tied to verified milestones keep the incentive aligned: the contractor gets paid by building, not by waiting. Have your engineer certify each stage before releasing money, and document it with photos and measurements. The retention is your only real leverage for the small defects that appear in the final months — once the last rupee is paid, callbacks become very difficult everywhere in the world, and Nepal is no exception.
At minimum: scope referenced to drawings and BOQ, material brands and grades, price with a stage-wise payment schedule, start/completion dates with a delay clause, testing and supervision rights, who pays for site utilities, how variations are approved, and a dispute-resolution process. The agreement's power comes from being specific: "good quality cement" is unenforceable, "OPC 53-grade of X or Y brand" is enforceable. Reference the signed drawings and BOQ as part of the contract so scope disputes have an answer. A delay clause with a modest per-day amount changes behaviour more than its rupee value suggests. And insist all variations are priced and signed before execution — verbal "adjust it later" changes are where most budget blowouts hide.
Visit at least two of their completed projects and one running site, talk to past clients about delays and after-handover support, verify who actually supervises the masons, and compare their quote against an independent BOQ estimate — not just against other quotes. A running site tells you more than a finished one: look at material storage, rebar detailing, curing practice and general site discipline. Past clients reveal the pattern — every project has problems, but how the contractor handled them is what you are buying. Comparing quotes only against each other rewards whoever cut the most corners; an independent BOQ gives you the honest baseline that exposes both padding and dangerous underbidding.

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