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This Construction Subcontract template is designed for use in the Saudi Arabian construction industry when a main contractor needs to engage specialized subcontractors for specific portions of a larger construction project. The document is structured to comply with Saudi Arabian law, including the Government Tenders and Procurement Law, Saudi Building Code, and relevant labor regulations. It provides a comprehensive framework for managing subcontracted works, including detailed provisions for scope, payment mechanisms, quality standards, and dispute resolution procedures. The template is particularly important in the context of Saudi Arabia's expanding construction sector and major development projects, where proper subcontract documentation is crucial for risk management and project success. It incorporates provisions that address local requirements such as Saudization policies, municipal regulations, and specific technical standards applicable in the Kingdom.

1. Parties: Identification of the Main Contractor and Subcontractor, including their full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the main contract, project details, and the basis for the subcontract arrangement

3. Definitions: Defined terms used throughout the agreement, including project-specific terminology and relevant Saudi law references

4. Scope of Works: Detailed description of the subcontracted works, including specific deliverables and exclusions

5. Contract Price and Payment: Payment terms, including amounts, payment schedule, retention, and VAT provisions in accordance with Saudi law

6. Time for Completion: Project schedule, milestones, and completion dates, including provisions for extensions of time

7. Subcontractor's Obligations: Key responsibilities including quality standards, compliance with laws, workforce requirements, and safety obligations

8. Main Contractor's Obligations: Main contractor's responsibilities including site access, coordination, and provision of information

9. Materials and Workmanship: Quality requirements, testing procedures, and standards for materials and execution

10. Health, Safety and Environment: HSE requirements, compliance with Saudi regulations, and specific project safety requirements

11. Variations: Procedures for changes to the scope, pricing of variations, and approval process

12. Delay and Extension of Time: Provisions for dealing with delays, extension of time claims, and liquidated damages

13. Insurance and Indemnities: Required insurance coverage and indemnification obligations

14. Default and Termination: Grounds for termination, termination procedures, and consequences

15. Dispute Resolution: Dispute resolution procedures compliant with Saudi law, including arbitration provisions

16. General Provisions: Standard legal provisions including notices, governing law, and entire agreement clauses