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A Supply of services agreement outlines the terms when one party provides professional services to another in Saudi Arabia. It covers essential details like service scope, payment terms, and delivery timelines while following the Kingdom's Commercial Law and Sharia principles.

These agreements protect both service providers and clients by clearly defining responsibilities, quality standards, and dispute resolution methods. For Saudi businesses, they're particularly important when dealing with specialized services like consulting, IT support, or facility management, helping ensure compliance with local labor regulations and commercial practices.

Use a Supply of services agreement when engaging external providers for professional work in Saudi Arabia—from IT consultants and maintenance crews to marketing agencies and business advisors. This becomes essential when the services involve significant costs, extend beyond a single transaction, or require ongoing collaboration.

The agreement brings clarity and protection when dealing with complex deliverables, specialized expertise, or services that impact your business operations. It's particularly important for regulated sectors like healthcare and financial services, where service providers must meet specific compliance requirements under Saudi law and regulatory frameworks.

• Fixed-term agreements: Used for one-time or project-based services with clear completion dates and deliverables
• Framework agreements: Cover ongoing services with multiple work orders or service requests over time
• Industry-specific agreements: Tailored for sectors like technology, healthcare, or construction with specialized terms
• Professional services agreements: Focus on specialized expertise like consulting, legal, or accounting services
• Maintenance and support agreements: Structure recurring technical or facility maintenance services under Saudi commercial law

• Service Providers: Companies or professionals offering specialized services, from IT consultants to facility managers, who need to define their scope and terms
• Corporate Clients: Saudi businesses receiving services, often represented by procurement teams or department heads who manage vendor relationships
• Legal Departments: In-house lawyers or external counsel who draft and review agreements to ensure compliance with Saudi regulations
• Finance Teams: Staff managing payment terms, invoicing schedules, and financial obligations outlined in the agreement
• Project Managers: Professionals overseeing service delivery and ensuring compliance with agreed performance standards

• Service Details: Document exact scope, deliverables, timelines, and quality standards expected from the service provider
• Party Information: Gather complete legal names, commercial registration numbers, and authorized signatories of both parties
• Payment Terms: Define costs, payment schedule, invoicing requirements, and any performance-linked payments
• Compliance Check: Review Saudi labor laws and industry-specific regulations that affect service delivery
• Performance Metrics: Establish clear KPIs and reporting requirements to measure service quality
• Exit Strategy: Include termination conditions, notice periods, and handover requirements

• Party Details: Full legal names, addresses, and commercial registration numbers of service provider and client
• Service Description: Detailed scope, specifications, and deliverables aligned with Saudi commercial practice
• Payment Terms: Clear pricing, payment schedule, and currency in compliance with Saudi monetary regulations
• Duration Clause: Contract period, renewal terms, and termination conditions under Sharia principles
• Dispute Resolution: Saudi jurisdiction clause and arbitration procedures following local law
• Compliance Statement: Confirmation of adherence to relevant Saudi regulations and industry standards

A Supply of services agreement differs significantly from a Supply of goods agreement in several key aspects under Saudi law. While both involve commercial transactions, their core focus and legal requirements vary substantially.

• Nature of Exchange: Services agreements cover ongoing professional work, expertise, or labor, while goods agreements focus on physical product delivery and transfer of ownership
• Performance Metrics: Service agreements require detailed quality standards and KPIs for ongoing work, whereas goods agreements primarily focus on product specifications and delivery terms
• Contract Duration: Services typically involve continuous or recurring obligations over time, while goods agreements often conclude after successful delivery
• Liability Structure: Service providers face different liability considerations under Saudi law, particularly regarding professional negligence and service quality, compared to product defect warranties in goods agreements