The Collaboration Agreement Between Builder And Owner is a critical document used in Saudi Arabian construction projects to establish a formal relationship between property owners and construction companies. This agreement is particularly relevant when undertaking new construction projects, renovations, or developments that require a clear framework for collaboration. It addresses key aspects required under Saudi law, including Sharia compliance, local building regulations, and commercial requirements. The document typically includes detailed provisions for project execution, payment structures, quality standards, and risk allocation, while incorporating specific Saudi Arabian regulatory requirements such as contractor classification, municipal approvals, and local content requirements. It serves as the primary contract governing the construction relationship and is essential for projects of all sizes in the Saudi Arabian market.
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1. Parties: Identification and details of the Owner and Builder, including commercial registration numbers and authorized signatories
2. Background: Context of the agreement, project overview, and parties' intentions
3. Definitions: Key terms used throughout the agreement, including technical construction terms and project-specific definitions
4. Scope of Work: Detailed description of construction works, specifications, and deliverables
5. Project Timeline: Construction schedule, milestones, and completion dates
6. Payment Terms: Price, payment schedule, advance payments, retention amounts, and final payment conditions
7. Parties' Obligations: Specific responsibilities of both Owner and Builder, including permits, materials, and supervision
8. Quality Standards: Construction standards, materials specifications, and quality control requirements
9. Site Access and Safety: Conditions for site access, safety protocols, and security measures
10. Variations and Changes: Procedures for requesting and implementing changes to the scope of work
11. Insurance and Liability: Required insurance coverage and allocation of risks between parties
12. Warranties and Defects: Warranty periods, defects liability, and remediation procedures
13. Force Majeure: Events beyond parties' control and their consequences
14. Termination: Grounds for termination and consequences
15. Dispute Resolution: Process for resolving disputes, including Saudi law requirements
16. Governing Law: Confirmation of Saudi law application and Sharia compliance
17. General Provisions: Standard clauses including notices, amendments, and entire agreement
1. Subcontracting: Terms for engaging subcontractors, when subcontracting is anticipated
2. Intellectual Property: IP rights provisions, when design or technical innovations are involved
3. Environmental Compliance: Environmental protection measures, when project has significant environmental impact
4. Equipment and Materials Storage: Storage arrangements, when significant materials or equipment storage is required
5. Local Content Requirements: Saudi workforce and local content obligations, for larger projects
6. Financing Arrangements: Details of project financing, when external financing is involved
7. Performance Bonds: Bond requirements and conditions, for larger projects
8. Training and Knowledge Transfer: Requirements for training local staff, when required by project scope
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed construction schedule with milestones
3. Schedule 3 - Payment Schedule: Breakdown of payments, milestone payments, and payment conditions
4. Schedule 4 - Site Plan: Detailed site plans and access arrangements
5. Schedule 5 - Quality Standards: Specific quality requirements and applicable standards
6. Schedule 6 - Required Permits: List of required permits and responsible parties
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage levels
8. Schedule 8 - Key Personnel: List of key personnel from both parties and their roles
9. Appendix A - Forms and Certificates: Standard forms for variations, completion certificates, etc.
10. Appendix B - Health and Safety Requirements: Detailed safety protocols and requirements
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