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Construction Agreement

Construction Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Agreement

"I need a Construction Agreement under Saudi law for a design-build commercial office tower project in Riyadh, with project completion scheduled for December 2025, including provisions for sustainable building standards and local content requirements."

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Document background
This Construction Agreement is designed for use in construction projects within Saudi Arabia, providing a comprehensive framework for construction works while ensuring compliance with Saudi laws, regulations, and Shariah principles. It is typically used when engaging contractors for building projects, infrastructure development, or industrial facilities. The agreement addresses key aspects including scope definition, payment mechanisms, quality standards, and dispute resolution procedures, while incorporating specific requirements of Saudi construction law such as the Saudi Building Code and governmental regulations. It includes provisions for both technical and commercial aspects of construction projects, making it suitable for various project types from simple structures to complex developments. The document structure accommodates local business practices and regulatory requirements while following international construction industry standards.
Suggested Sections

1. Parties: Identification of the employer and contractor, including full legal names and addresses

2. Background: Context of the agreement, project overview, and basis for contracting

3. Definitions and Interpretation: Comprehensive definitions of technical and legal terms, interpretation rules

4. Scope of Works: Detailed description of construction works to be performed

5. Contract Price and Payment: Price, payment terms, milestones, and payment procedures

6. Project Timeline: Commencement date, completion date, key milestones, and extension provisions

7. Contractor Obligations: Key responsibilities including workmanship, materials, and compliance

8. Employer Obligations: Site access, permits, approvals, and other employer responsibilities

9. Quality and Standards: Required quality standards, inspections, and compliance with Saudi Building Code

10. Variations: Procedures for changes to scope, pricing, and timeline

11. Health and Safety: Safety requirements and compliance with local regulations

12. Insurance and Liability: Required insurance coverage and liability provisions

13. Force Majeure: Events beyond parties' control and their consequences

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Resolution procedures, governing law, and jurisdiction

16. General Provisions: Notices, amendments, entire agreement, and other standard provisions

Optional Sections

1. Design Obligations: Used in design-build contracts where contractor is responsible for design

2. Value Engineering: Include when parties agree to optimize design and construction methods

3. Advance Payment: When advance payment is required, including bank guarantee provisions

4. Materials Supply: When employer provides materials or equipment

5. Subcontracting: Detailed subcontracting provisions for larger projects

6. Testing and Commissioning: For projects requiring complex testing procedures

7. Environmental Protection: For projects with significant environmental impact

8. Local Content Requirements: When project must meet Saudi local content requirements

9. Islamic Finance Provisions: When project involves Islamic financing structures

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Project Programme: Detailed timeline and milestone dates

3. Schedule 3 - Payment Schedule: Payment milestones and amounts

4. Schedule 4 - Site Information: Site details, access points, and existing conditions

5. Schedule 5 - Key Personnel: List of key personnel from both parties

6. Schedule 6 - Forms of Bonds and Guarantees: Templates for performance bond, advance payment guarantee

7. Schedule 7 - Insurance Requirements: Detailed insurance specifications

8. Schedule 8 - Quality Assurance Plan: Quality control procedures and requirements

9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements

10. Schedule 10 - Forms of Certificates: Templates for completion certificates and other formal documents

11. Appendix A - Drawings: Technical drawings and designs

12. Appendix B - Bill of Quantities: Detailed breakdown of quantities and rates

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions































































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Relevant Industries

Construction

Real Estate Development

Infrastructure

Oil & Gas

Industrial

Commercial Property

Residential Property

Healthcare

Education

Hospitality

Transportation

Energy

Mining

Government/Public Works

Relevant Teams

Legal

Project Management

Construction

Commercial

Procurement

Engineering

Operations

Risk & Compliance

Finance

Corporate Development

Technical Services

Quality Assurance

Health & Safety

Environmental

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Commercial Director

Technical Director

Chief Engineer

Quantity Surveyor

Risk Manager

Procurement Manager

Operations Director

Site Manager

Corporate Lawyer

Finance Director

CEO

Managing Director

Development Manager

Engineering Manager

Compliance Officer

Industries








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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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