This Construction Agreement is designed for use in construction projects within Saudi Arabia, providing a comprehensive framework for construction works while ensuring compliance with Saudi laws, regulations, and Shariah principles. It is typically used when engaging contractors for building projects, infrastructure development, or industrial facilities. The agreement addresses key aspects including scope definition, payment mechanisms, quality standards, and dispute resolution procedures, while incorporating specific requirements of Saudi construction law such as the Saudi Building Code and governmental regulations. It includes provisions for both technical and commercial aspects of construction projects, making it suitable for various project types from simple structures to complex developments. The document structure accommodates local business practices and regulatory requirements while following international construction industry standards.
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1. Parties: Identification of the employer and contractor, including full legal names and addresses
2. Background: Context of the agreement, project overview, and basis for contracting
3. Definitions and Interpretation: Comprehensive definitions of technical and legal terms, interpretation rules
4. Scope of Works: Detailed description of construction works to be performed
5. Contract Price and Payment: Price, payment terms, milestones, and payment procedures
6. Project Timeline: Commencement date, completion date, key milestones, and extension provisions
7. Contractor Obligations: Key responsibilities including workmanship, materials, and compliance
8. Employer Obligations: Site access, permits, approvals, and other employer responsibilities
9. Quality and Standards: Required quality standards, inspections, and compliance with Saudi Building Code
10. Variations: Procedures for changes to scope, pricing, and timeline
11. Health and Safety: Safety requirements and compliance with local regulations
12. Insurance and Liability: Required insurance coverage and liability provisions
13. Force Majeure: Events beyond parties' control and their consequences
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Resolution procedures, governing law, and jurisdiction
16. General Provisions: Notices, amendments, entire agreement, and other standard provisions
1. Design Obligations: Used in design-build contracts where contractor is responsible for design
2. Value Engineering: Include when parties agree to optimize design and construction methods
3. Advance Payment: When advance payment is required, including bank guarantee provisions
4. Materials Supply: When employer provides materials or equipment
5. Subcontracting: Detailed subcontracting provisions for larger projects
6. Testing and Commissioning: For projects requiring complex testing procedures
7. Environmental Protection: For projects with significant environmental impact
8. Local Content Requirements: When project must meet Saudi local content requirements
9. Islamic Finance Provisions: When project involves Islamic financing structures
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Programme: Detailed timeline and milestone dates
3. Schedule 3 - Payment Schedule: Payment milestones and amounts
4. Schedule 4 - Site Information: Site details, access points, and existing conditions
5. Schedule 5 - Key Personnel: List of key personnel from both parties
6. Schedule 6 - Forms of Bonds and Guarantees: Templates for performance bond, advance payment guarantee
7. Schedule 7 - Insurance Requirements: Detailed insurance specifications
8. Schedule 8 - Quality Assurance Plan: Quality control procedures and requirements
9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements
10. Schedule 10 - Forms of Certificates: Templates for completion certificates and other formal documents
11. Appendix A - Drawings: Technical drawings and designs
12. Appendix B - Bill of Quantities: Detailed breakdown of quantities and rates
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Oil & Gas
Industrial
Commercial Property
Residential Property
Healthcare
Education
Hospitality
Transportation
Energy
Mining
Government/Public Works
Relevant Teams
Legal
Project Management
Construction
Commercial
Procurement
Engineering
Operations
Risk & Compliance
Finance
Corporate Development
Technical Services
Quality Assurance
Health & Safety
Environmental
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Project Manager
Commercial Director
Technical Director
Chief Engineer
Quantity Surveyor
Risk Manager
Procurement Manager
Operations Director
Site Manager
Corporate Lawyer
Finance Director
CEO
Managing Director
Development Manager
Engineering Manager
Compliance Officer
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