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Simple Construction Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Simple Construction Contract

"I need a Simple Construction Contract for building a small retail space in Riyadh, with a project value of SAR 2 million and completion date of March 2025; the contract should include standard payment terms and local municipality compliance requirements."

Document background
The Simple Construction Contract is designed for use in Saudi Arabia where construction activities must comply with both civil law requirements and Shariah principles. This document is particularly suitable for straightforward construction projects where sophisticated contract mechanisms like detailed variations procedures or complex payment structures are not required. It provides a balanced framework for both employers and contractors, covering essential elements such as scope of works, payment terms, timeline, and party obligations while remaining compliant with Saudi law. The contract is typically used for projects such as residential buildings, simple commercial structures, or basic infrastructure works where the scope is well-defined and the risk profile is relatively straightforward. It incorporates key provisions required under Saudi construction regulations and building codes while maintaining accessibility for users who may not be construction law specialists.
Suggested Sections

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

2. Background: Brief context of the construction project and the parties' intention to enter into this agreement

3. Definitions: Key terms used throughout the contract, including technical construction terminology

4. Scope of Works: Detailed description of the construction works to be performed by the Contractor

5. Contract Price and Payment Terms: Amount payable, payment schedule, and payment conditions

6. Duration and Timeline: Project commencement date, completion date, and key milestones

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

8. Employer's Obligations: Key responsibilities including site access, permits, and approvals

9. Materials and Workmanship: Standards for materials, testing requirements, and quality control

10. Variations: Process for handling changes to the scope of works

11. Defects Liability: Contractor's obligations regarding defects and the defects liability period

12. Insurance and Liability: Required insurance coverage and allocation of risks

13. Force Majeure: Events beyond parties' control and their consequences

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration

16. Governing Law: Confirmation of Saudi law as governing law and reference to Shariah principles

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for larger value contracts

2. Advance Payment: Terms for advance payment and related guarantees, if advance payment is required

3. Subcontracting: Rules and conditions for subcontracting, if subcontractors will be used

4. Site Conditions: Specific provisions regarding site conditions and underground works, for complex sites

5. Testing and Commissioning: Detailed testing requirements, for projects with mechanical/electrical components

6. Intellectual Property: IP rights provisions, for projects involving design elements

7. Environmental Compliance: Special environmental obligations, for environmentally sensitive projects

8. Local Content Requirements: Saudi local content requirements, for projects subject to Saudi Aramco or government requirements

Suggested Schedules

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

2. Schedule 2 - Project Timeline: Detailed program of works with milestones

3. Schedule 3 - Payment Schedule: Breakdown of payments, including milestone payments

4. Schedule 4 - Site Details: Site plan, access points, and any site-specific requirements

5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities

6. Schedule 6 - Required Insurances: Details of required insurance policies and coverage amounts

7. Schedule 7 - Forms of Certificates: Templates for completion certificates and payment certificates

8. Schedule 8 - Health and Safety Requirements: Specific health and safety requirements and 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

Real Estate

Infrastructure

Industrial

Commercial Development

Residential Development

Healthcare

Education

Hospitality

Retail

Manufacturing

Relevant Teams

Legal

Commercial

Operations

Procurement

Construction

Project Management

Finance

Risk & Compliance

Technical

Business Development

Relevant Roles

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Commercial Manager

Procurement Manager

Site Engineer

Quantity Surveyor

Chief Executive Officer

Operations Director

Finance Director

Technical Director

Business Development Manager

Risk 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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