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Construction Partnership Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Partnership Agreement

"I need a Construction Partnership Agreement for a joint venture between my Saudi construction company and a UAE-based contractor to develop a large-scale residential complex in Riyadh, with construction starting in March 2025 and specific provisions for technology transfer and local workforce development."

Document background
The Construction Partnership Agreement is essential for entities looking to collaborate on construction projects in Saudi Arabia. It is particularly relevant when two or more companies wish to combine their expertise, resources, and capabilities for specific construction projects or ongoing collaboration in the construction sector. The document must comply with Saudi Arabian law, including the Companies Law, Building Code, and Shariah principles. It covers crucial aspects such as partnership structure, capital contributions, profit-sharing, project management, regulatory compliance, and dispute resolution. This agreement is commonly used for large-scale construction projects, infrastructure development, or when local and international construction companies form partnerships to meet project requirements and Saudization goals.
Suggested Sections

1. Parties: Identification of all partnership parties, including their legal status and registration details in Saudi Arabia

2. Background: Context of the partnership formation, project overview, and parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including reference to Saudi law terminology

4. Partnership Structure: Legal structure, ownership percentages, capital contributions, and registration requirements under Saudi Companies Law

5. Scope of Partnership: Detailed description of construction activities, project scope, and geographical limitations

6. Capital and Financing: Partnership capital, funding mechanisms, and profit/loss sharing arrangements in compliance with Shariah principles

7. Management and Control: Management structure, decision-making processes, and voting rights of partners

8. Construction Operations: Operational procedures, project management, and execution methodology

9. Duties and Responsibilities: Specific obligations of each partner, including technical, financial, and administrative responsibilities

10. Compliance and Permits: Obligations regarding Saudi building codes, permits, and regulatory compliance

11. Financial Matters: Financial management, accounting procedures, and distribution of profits/losses

12. Staff and Employment: Employment policies, Saudization requirements, and labor law compliance

13. Insurance and Liability: Insurance requirements and allocation of risks and liabilities

14. Term and Termination: Duration of partnership, renewal terms, and termination procedures

15. Dispute Resolution: Shariah-compliant dispute resolution procedures and jurisdiction clauses

16. Governing Law: Explicit reference to Saudi law governance and Shariah compliance

17. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

Optional Sections

1. Intellectual Property Rights: Required when the partnership involves development of unique construction methods or proprietary technology

2. Environmental Compliance: Necessary for projects with significant environmental impact or specific environmental requirements

3. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects

4. Competition Restrictions: Non-compete and territorial restrictions when partners have competing interests

5. Technology and Systems: Required when specific construction technology or systems are central to the partnership

6. Quality Control: Detailed quality management procedures for complex construction projects

7. Training and Knowledge Transfer: Important when the partnership involves technology transfer or capacity building

8. Security Requirements: Necessary for projects involving sensitive locations or government facilities

Suggested Schedules

1. Schedule 1 - Project Specifications: Detailed technical specifications and construction requirements

2. Schedule 2 - Capital Contributions: Detailed breakdown of each partner's capital contributions

3. Schedule 3 - Management Structure: Organizational chart and management procedures

4. Schedule 4 - Project Timeline: Construction milestones and project schedule

5. Schedule 5 - Equipment and Resources: List of equipment, machinery, and resources to be provided by each partner

6. Schedule 6 - Quality Standards: Specific quality standards and testing requirements

7. Schedule 7 - Form of Policies and Procedures: Standard operating procedures and policy templates

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements

9. Appendix A - Required Permits and Licenses: List of necessary regulatory approvals and permits

10. Appendix B - Key Personnel: Details of key management and technical staff

11. Appendix C - Safety Standards: Health and safety requirements and procedures

12. Appendix D - Environmental Management Plan: Environmental compliance and management procedures

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

Relevant legal definitions
Clauses
















































Relevant Industries

Construction

Infrastructure Development

Real Estate

Commercial Property

Industrial Development

Energy and Utilities

Transportation

Healthcare Infrastructure

Education Infrastructure

Residential Development

Mining

Oil and Gas Infrastructure

Relevant Teams

Legal

Operations

Finance

Construction Management

Project Management

Risk and Compliance

Commercial

Business Development

Technical Services

Strategic Planning

Contract Administration

Corporate Development

Relevant Roles

Chief Executive Officer

Managing Director

Construction Director

Project Manager

Legal Counsel

Contract Manager

Operations Director

Finance Director

Technical Director

Risk Manager

Compliance Officer

Business Development Manager

Construction Manager

Partnership Manager

Chief Operating Officer

Site Manager

Commercial Director

Strategic Planning Director

Industries










Teams

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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