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Contract Agreement For Construction Work Template for Saudi Arabia

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Key Requirements PROMPT example:

Contract Agreement For Construction Work

"I need a Contract Agreement For Construction Work under Saudi law for a 50-story commercial tower project in Riyadh, with a value of SAR 500 million, where I'm the developer working with multiple international contractors, with construction scheduled to begin in March 2025."

Document background
The Contract Agreement For Construction Work is a fundamental legal document used in Saudi Arabia to establish and govern the relationship between construction project owners and contractors. This agreement is essential for any construction project in Saudi Arabia, whether commercial, residential, or industrial, and must comply with both Shariah law principles and Saudi regulations, including the Government Tenders and Procurement Law, Saudi Building Code, and Labor Law requirements. The document is typically used when initiating major construction projects and includes detailed provisions for project execution, payment terms, quality standards, and risk allocation. It addresses specific Saudi Arabian requirements such as local content rules, government approvals, and Islamic financing principles. The agreement serves as the primary reference document throughout the construction phase and includes comprehensive schedules and appendices detailing technical specifications, timelines, and compliance requirements.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the construction project

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Scope of Work: Detailed description of construction works to be performed, including specifications and standards

5. Contract Price and Payment Terms: Price, payment schedule, and payment mechanisms compliant with Shariah principles

6. Project Timeline: Commencement date, completion date, milestones, and provisions for extensions

7. Contractor Obligations: Key responsibilities including labor, materials, equipment, permits, and compliance requirements

8. Employer Obligations: Client responsibilities including site access, approvals, and information provision

9. Quality and Standards: Quality requirements, applicable standards, and inspection procedures

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

11. Variations: Procedures for changes to scope, pricing, or timeline

12. Warranties and Defects: Warranty periods, defect notification, and remediation procedures

13. Insurance and Security: Required insurance coverage and performance security requirements

14. Force Majeure: Definition and consequences of force majeure events

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Dispute resolution procedures compliant with Saudi law

17. Governing Law: Confirmation of Saudi law and Shariah principles as governing law

Optional Sections

1. Government Approvals: Required when project needs specific government permits or approvals

2. Specialized Equipment: For projects involving installation or use of specialized equipment

3. Intellectual Property: When design rights or technology transfers are involved

4. Environmental Impact: For projects requiring detailed environmental management plans

5. Local Content Requirements: When Saudi government local content requirements apply

6. Financing Provisions: For projects with specific financing arrangements

7. Subcontracting: When subcontracting is anticipated or restricted

8. Testing and Commissioning: For projects requiring specific testing procedures

9. Training and Knowledge Transfer: When operator training or technology transfer is required

Suggested Schedules

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

2. Schedule 2 - Project Timeline: Detailed program of works and milestone dates

3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and bill of quantities

4. Schedule 4 - Payment Schedule: Payment milestones and procedures

5. Schedule 5 - Key Personnel: List of key personnel and their qualifications

6. Schedule 6 - Required Permits: List of required permits and responsibilities

7. Schedule 7 - Technical Standards: Applicable technical standards and specifications

8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements

9. Schedule 9 - Forms: Standard forms for variations, completion certificates, etc.

10. Schedule 10 - Insurance Requirements: Detailed insurance requirements and coverage limits

11. Appendix A - Site Plan: Drawings and details of the construction site

12. Appendix B - Quality Assurance Plan: Quality control procedures and requirements

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


























































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Relevant Industries

Construction

Real Estate Development

Infrastructure

Oil & Gas

Industrial

Commercial Development

Residential Development

Healthcare

Education

Hospitality

Retail

Transportation

Energy

Manufacturing

Public Works

Relevant Teams

Legal

Procurement

Operations

Project Management

Finance

Commercial

Technical

Health Safety Environment

Quality Control

Risk Management

Compliance

Engineering

Construction Management

Contract Administration

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Chief Executive Officer

Chief Financial Officer

Project Engineer

Site Supervisor

Procurement Manager

Quality Control Manager

HSE Manager

Commercial Director

Technical Director

Operations Manager

Risk Manager

Compliance Officer

Cost Controller

Planning Manager

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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