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Construction Contract Termination Agreement
"I need a Construction Contract Termination Agreement under Saudi law for a mutual termination of a shopping mall development project in Riyadh, where construction is 60% complete and we need to address ongoing warranty obligations for the completed portions while ensuring Sharia compliance."
1. Parties: Identification of all contracting parties, including the employer, contractor, and any guaranteed parties
2. Background: Details of the original construction contract, project description, and circumstances leading to termination
3. Definitions: Definitions of key terms used in the agreement, including relevant Arabic/English translations where necessary
4. Termination Effect and Date: Clear statement of termination, effective date, and immediate consequences
5. Financial Settlement: Terms of final payment, including outstanding payments, retention amounts, and any termination-related costs
6. Handover Requirements: Procedures for site handover, transfer of materials, equipment, and documentation
7. Warranties and Guarantees: Status of existing warranties, performance guarantees, and bonds
8. Release and Discharge: Mutual release of claims and obligations, subject to specified exceptions
9. Confidentiality: Obligations regarding confidential information post-termination
10. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes
11. Execution: Signature requirements and execution formalities compliant with Saudi law
1. Ongoing Disputes Resolution: Include when there are existing disputes that need specific resolution mechanisms
2. Intellectual Property Rights: Include when there are significant IP rights to be transferred or licensed
3. Employee Matters: Include when there are specific arrangements for employee transfer or termination
4. Insurance and Indemnities: Include when specific insurance arrangements need to continue or require special handling
5. Defects Liability: Include when there are ongoing defects liability obligations to be addressed
6. Third Party Rights: Include when there are significant subcontractor or supplier relationships to address
7. Anti-corruption Compliance: Include for public sector projects or when required by corporate policies
1. Schedule 1 - Original Contract Documents: List of all relevant contract documents being terminated
2. Schedule 2 - Financial Statement: Detailed breakdown of final account, including all payments, deductions, and outstanding amounts
3. Schedule 3 - Handover Items: Comprehensive list of materials, equipment, and documents to be handed over
4. Schedule 4 - Outstanding Works: List of incomplete works and their status at termination
5. Schedule 5 - Performance Bonds and Guarantees: Details of all bonds and guarantees and their treatment
6. Schedule 6 - Known Claims and Disputes: List of existing claims and their agreed resolution
7. Appendix A - Handover Protocol: Detailed procedures and timeline for project handover
8. Appendix B - Release Certificates: Forms of mutual release certificates to be executed
Authors
Construction
Infrastructure
Real Estate Development
Oil & Gas
Industrial Development
Commercial Property
Healthcare Facilities
Education Facilities
Government Infrastructure
Transportation
Energy
Mining
Hospitality
Legal
Commercial
Construction
Project Management
Finance
Operations
Engineering
Risk Management
Procurement
Compliance
Technical Services
Project Director
Construction Manager
Legal Counsel
Contract Manager
Chief Executive Officer
Commercial Director
Project Manager
Site Manager
Quantity Surveyor
Risk Manager
Finance Director
Operations Director
Technical Director
Engineering Manager
Procurement Manager
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