The Project Specific Agreement is a specialized contract used when parties need to establish detailed terms and conditions for executing a particular project within Saudi Arabia. This agreement type is particularly important as it combines project-specific requirements with compliance to Saudi law and Sharia principles. It is commonly used for major infrastructure, construction, technology, or development projects where clear delineation of scope, responsibilities, and risk allocation is crucial. The document typically includes detailed technical specifications, timeline commitments, payment structures, and performance standards, while ensuring alignment with Saudi regulatory requirements and business practices. A Project Specific Agreement is essential when the scope of work is clearly defined, requires specific execution parameters, and involves multiple stakeholders or complex deliverables.
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1. Parties: Identification of contracting parties, including full legal names, commercial registration numbers, and authorized signatories
2. Background: Context of the agreement, including project overview and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Work: Detailed description of project scope, deliverables, and objectives
5. Duration and Timeline: Project duration, key milestones, and completion dates
6. Payment Terms: Pricing, payment schedule, and payment mechanisms (ensuring Sharia compliance)
7. Parties' Obligations: Detailed responsibilities and obligations of each party
8. Performance Standards: Quality standards, specifications, and performance requirements
9. Compliance Requirements: Regulatory compliance, permits, and approvals requirements
10. Risk Allocation: Distribution of risks between parties and related responsibilities
11. Warranties and Representations: Parties' warranties regarding capacity, authority, and performance capabilities
12. Liability and Indemnification: Liability limitations and indemnification obligations
13. Force Majeure: Events constituting force majeure and consequent rights and obligations
14. Termination: Grounds for termination and consequences thereof
15. Dispute Resolution: Dispute resolution mechanisms compliant with Saudi law
16. Governing Law: Confirmation of Saudi law as governing law and its interpretation
17. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Intellectual Property Rights: Required when project involves creation or use of intellectual property
2. Confidentiality: Detailed confidentiality obligations when sensitive information is involved
3. Insurance: Insurance requirements when specific coverage is needed for project risks
4. Security Requirements: When performance bonds or other security instruments are required
5. Local Content Requirements: When project must comply with Saudi Aramco's In-Kingdom Total Value Add (IKTVA) program or similar requirements
6. Health, Safety and Environment: When project involves on-site work or environmental considerations
7. Training and Knowledge Transfer: When project includes training or technology transfer components
8. Subcontracting: When subcontracting is contemplated and needs to be regulated
9. Change Management: When project complexity requires formal change control procedures
1. Schedule 1 - Detailed Scope of Work: Technical specifications and detailed work breakdown structure
2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and delivery dates
3. Schedule 3 - Pricing and Payment Schedule: Detailed pricing breakdown and payment milestones
4. Schedule 4 - Key Personnel: List of key personnel and their roles/responsibilities
5. Schedule 5 - Technical Standards: Applicable technical standards and specifications
6. Schedule 6 - Forms and Procedures: Standard forms for notices, changes, and approvals
7. Schedule 7 - Site Access and Requirements: Site-specific requirements and procedures
8. Schedule 8 - Performance Security Forms: Templates for required bonds or guarantees
9. Appendix A - Required Permits and Approvals: List of required regulatory approvals and permits
10. Appendix B - HSE Requirements: Detailed health, safety, and environmental requirements
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