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Subcontractor Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Subcontractor Contract

"I need a Subcontractor Contract under Saudi Arabian law for a construction project in Riyadh, where we'll be subcontracting specialized mechanical and electrical works for a commercial building development starting March 2025, with particular emphasis on local content requirements and Saudization compliance."

Document background
This Subcontractor Contract is essential for projects where a main contractor needs to delegate specific portions of work to specialized subcontractors in Saudi Arabia. The document is structured to comply with Saudi Arabian law, including the Saudi Labor Law, Commercial Courts Law, and Sharia principles, while incorporating industry best practices. It is particularly crucial for complex projects where clear delineation of responsibilities, risk allocation, and performance standards is required. The contract addresses key elements such as scope definition, payment mechanisms, quality standards, and dispute resolution procedures, while ensuring compliance with local content requirements and Saudization policies. This template is designed to protect both parties' interests while maintaining alignment with the main contract obligations and project objectives.
Suggested Sections

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 overview, and basis for the subcontracting relationship

3. Definitions: Detailed definitions of terms used throughout the agreement, including project-specific terminology

4. Scope of Works: Detailed description of the works to be performed by the subcontractor, including specifications and standards

5. Contract Price and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and VAT provisions

6. Duration and Timeline: Project schedule, milestones, completion dates, and any liquidated damages for delay

7. Obligations of the Subcontractor: Key responsibilities, quality standards, reporting requirements, and compliance with laws

8. Main Contractor's Rights and Obligations: Responsibilities of the main contractor, including site access, information provision, and coordination

9. Materials and Equipment: Provisions regarding procurement, quality, storage, and responsibility for materials

10. Health, Safety and Environment: HSE requirements, compliance with local regulations, and safety protocols

11. Workforce Requirements: Labor law compliance, Saudization requirements, work permits, and workforce management

12. Quality Control: Quality assurance procedures, inspections, and acceptance criteria

13. Variations: Process for handling changes to scope, pricing, or timeline

14. Indemnification and Liability: Risk allocation, insurance requirements, and limitation of liability provisions

15. Termination: Grounds for termination, notice requirements, and consequences

16. Dispute Resolution: Process for resolving disputes, including Saudi law requirements for jurisdiction

17. Governing Law: Confirmation of Saudi law application and Sharia compliance

Optional Sections

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

2. Intellectual Property Rights: IP ownership and licenses, relevant for technical or design-related subcontracts

3. Confidentiality: Non-disclosure provisions, needed for sensitive projects

4. Force Majeure: Provisions for unforeseen events, particularly relevant for long-term projects

5. Step-in Rights: Main contractor's right to take over subcontractor's scope, used for critical project components

6. Export Control: Compliance with international trade regulations, relevant for contracts with foreign elements

7. Language: Specification of prevailing language, needed for international contracts

8. Anti-corruption: Compliance with anti-bribery laws, important for international or government-related projects

Suggested Schedules

1. Schedule 1 - Detailed Scope of Works: Technical specifications, drawings, and detailed work requirements

2. Schedule 2 - Bill of Quantities: Detailed breakdown of quantities and rates

3. Schedule 3 - Project Timeline: Detailed project schedule, milestones, and completion dates

4. Schedule 4 - Payment Schedule: Detailed payment terms, milestone payments, and retention provisions

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

6. Schedule 6 - Required Insurances: Details of insurance types and coverage requirements

7. Schedule 7 - Forms and Procedures: Standard forms for variations, progress reports, and other project documentation

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

9. Appendix A - Main Contract Excerpts: Relevant portions of the main contract that apply to the subcontractor

10. Appendix B - Technical Standards: Applicable technical standards and specifications

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

Engineering

Oil & Gas

Infrastructure

Real Estate Development

Manufacturing

Technology

Telecommunications

Defense

Energy

Mining

Transportation

Relevant Teams

Legal

Procurement

Commercial

Operations

Project Management

Risk & Compliance

Finance

Engineering

Quality Assurance

Health & Safety

Technical Services

Relevant Roles

Project Manager

Contract Manager

Legal Counsel

Commercial Manager

Procurement Manager

Construction Manager

Operations Director

Technical Director

Risk Manager

Compliance Officer

Chief Financial Officer

Site Supervisor

Quality Control Manager

HSE Manager

Engineering 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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