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Agreement Between Developer And Contractor for Saudi Arabia

Agreement Between Developer And Contractor Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the contractual relationship between a property developer and a construction contractor. This document outlines the terms and conditions for the execution of construction works, including scope, payment terms, timelines, and obligations of both parties. It incorporates specific requirements of Saudi Arabian construction law, Shariah principles, and local building regulations, while addressing key aspects such as quality standards, warranties, dispute resolution mechanisms, and compliance with local content requirements.

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What is a Agreement Between Developer And Contractor?

The Agreement Between Developer And Contractor is a fundamental document in construction projects within Saudi Arabia, essential for establishing clear contractual relationships in development projects. It is typically used when a property developer engages a contractor to execute construction works, whether for commercial, residential, or industrial projects. The agreement must comply with Saudi Arabian law, including Shariah principles and local building regulations, while incorporating industry best practices. It covers crucial elements such as scope of works, payment terms, project timeline, quality standards, warranties, and dispute resolution mechanisms. The document is particularly important given Saudi Arabia's expanding construction sector and the increasing complexity of development projects under Vision 2030. It provides necessary legal protection for both parties while ensuring alignment with local regulatory requirements and construction standards.

What sections should be included in a Agreement Between Developer And Contractor?

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

2. Background: Context of the agreement, including project overview and basis for engagement

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

4. Scope of Works: Detailed description of the works to be performed by the Contractor, including general and specific obligations

5. Contract Price and Payment: Payment terms, including price, payment schedule, variations, and invoicing procedures

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

7. Contractor's Obligations: Detailed responsibilities including workmanship, materials, compliance with laws, and safety requirements

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

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

10. Variations: Process for handling changes to scope, pricing, and timeline

11. Warranties and Defects: Warranty periods, defects liability, and remediation procedures

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

13. Force Majeure: Events constituting force majeure and consequences

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

15. Dispute Resolution: Dispute resolution procedures, including Saudi law requirements

16. Governing Law: Confirmation of Saudi law as governing law and compliance with Shariah principles

What sections are optional to include in a Agreement Between Developer And Contractor?

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

2. Intellectual Property: IP rights and obligations, needed when design or proprietary technology is involved

3. Confidentiality: Confidentiality obligations, recommended for projects involving sensitive information

4. Environmental Compliance: Specific environmental obligations, required for projects with significant environmental impact

5. Local Content Requirements: Saudi content and employment requirements, needed for projects subject to specific localization rules

6. Advance Payment: Terms for advance payments and associated guarantees, used when advance payments are agreed

7. Subcontracting: Rules and restrictions on subcontracting, needed when subcontracting is anticipated

8. Site Conditions: Provisions relating to site conditions and surveys, important for greenfield projects

What schedules should be included in a Agreement Between Developer And Contractor?

1. Schedule 1 - Scope of Works: Detailed technical specification and scope description

2. Schedule 2 - Project Programme: Detailed timeline, milestones, and completion dates

3. Schedule 3 - Payment Schedule: Detailed breakdown of payments, milestones, and pricing

4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions

5. Schedule 5 - Required Insurances: Detailed insurance requirements and coverage levels

6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles

7. Schedule 7 - Forms of Bonds/Guarantees: Templates for required performance bonds and guarantees

8. Schedule 8 - Technical Standards: Applicable technical standards and specifications

9. Appendix A - Drawings: Approved construction drawings and designs

10. Appendix B - Permits and Licenses: Copies of relevant permits and licenses

11. Appendix C - HSE Requirements: Health, safety, and environmental requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions



















































Clauses






































Relevant Industries

Real Estate

Commercial Construction

Residential Development

Industrial Construction

Infrastructure Development

Healthcare Facilities

Education Facilities

Retail Development

Hospitality

Mixed-use Development

Energy and Utilities

Transportation

Relevant Teams

Legal

Construction

Development

Commercial

Procurement

Risk Management

Compliance

Finance

Project Controls

Operations

Technical Services

Quality Assurance

Relevant Roles

Construction Manager

Project Director

Development Manager

Contract Manager

Legal Counsel

Chief Operating Officer

Technical Director

Commercial Manager

Procurement Manager

Risk Manager

Compliance Officer

Finance Director

Project Control Manager

Site Manager

Quality Assurance 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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