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Professional Services Contract for Saudi Arabia

Professional Services Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law and Sharia principles, designed to regulate the provision of professional services between a service provider and a client. The document establishes the framework for service delivery, including scope, payment terms, performance standards, and compliance requirements while adhering to Saudi commercial regulations, labor laws, and relevant industry-specific requirements. It incorporates necessary provisions for intellectual property protection, confidentiality, and dispute resolution mechanisms specific to the Saudi Arabian legal context.

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Professional Services Contract

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What is a Professional Services Contract?

The Professional Services Contract serves as a fundamental legal instrument for businesses operating in Saudi Arabia who engage external expertise or provide professional services. This document is essential when establishing formal relationships for consulting, advisory, technical, or specialized professional services, ensuring compliance with Saudi Arabian laws, regulations, and Sharia principles. It addresses key aspects including service scope, delivery terms, payment structures, and risk allocation, while incorporating necessary provisions for local business practices and regulatory requirements. The contract is particularly relevant in the context of Saudi Vision 2030, which has increased demand for professional services across various sectors, and includes specific considerations for local content requirements and Saudi Arabian business regulations.

What sections should be included in a Professional Services Contract?

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

2. Background: Context of the agreement and general purpose of the professional services arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpreting the contract

4. Scope of Services: Detailed description of the professional services to be provided, including deliverables and performance standards

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Service Provider's Obligations: Key responsibilities and commitments of the service provider, including quality standards and compliance requirements

7. Client's Obligations: Responsibilities of the client, including provision of information and access necessary for service delivery

8. Fees and Payment Terms: Compensation structure, payment schedule, invoicing requirements, and VAT considerations

9. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created intellectual property

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: Handling and protection of personal and business data in compliance with Saudi regulations

12. Liability and Indemnification: Allocation of risks and responsibilities for damages or losses

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Termination: Grounds and procedures for ending the agreement, including notice requirements

15. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes

16. Notices: Methods and addresses for formal communications between parties

17. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Professional Services Contract?

1. Service Levels: Specific performance metrics and standards, used when quantifiable service levels are required

2. Change Control: Process for managing changes to scope or services, recommended for complex or long-term engagements

3. Insurance: Specific insurance requirements, important for high-risk services

4. Non-Competition: Restrictions on competitive activities, relevant for sensitive industries or specialized services

5. Assignment and Subcontracting: Rules for transferring rights or delegating services, important for larger projects

6. Compliance with Anti-Corruption Laws: Specific anti-corruption provisions, essential for international services or government-related work

7. Exit Management: Detailed transition provisions, important for critical or complex services

8. Shariah Compliance: Specific provisions ensuring compliance with Islamic principles, important for financial or investment-related services

9. Local Content Requirements: Provisions addressing Saudi Arabia's local content requirements, relevant for certain regulated industries

What schedules should be included in a Professional Services Contract?

1. Schedule 1 - Service Description: Detailed specification of services, methodologies, and deliverables

2. Schedule 2 - Fees and Payment Schedule: Detailed breakdown of fees, payment milestones, and pricing mechanisms

3. Schedule 3 - Service Levels and KPIs: Specific performance metrics, measurement methods, and reporting requirements

4. Schedule 4 - Client Dependencies: Detailed list of client-provided resources, information, and access requirements

5. Schedule 5 - Key Personnel: Details of key team members and their roles

6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors and their scope of work

7. Appendix A - Required Forms and Templates: Standard forms for reporting, change requests, and other operational documents

8. Appendix B - Technical Requirements: Specific technical standards or requirements applicable to the services

9. Appendix C - Compliance Requirements: Detailed regulatory and compliance requirements specific to the services

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions



















































Clauses















































Relevant Industries

Information Technology

Management Consulting

Financial Services

Healthcare

Education

Engineering

Architecture

Legal Services

Accounting and Audit

Marketing and Advertising

Human Resources

Environmental Services

Real Estate

Construction

Energy and Utilities

Telecommunications

Relevant Teams

Legal

Procurement

Finance

Operations

Risk and Compliance

Human Resources

Information Technology

Commercial

Business Development

Project Management Office

Strategy

Vendor Management

Contract Administration

Relevant Roles

Legal Counsel

Procurement Manager

Contract Manager

Business Development Manager

Project Manager

Chief Financial Officer

Operations Director

Risk Manager

Compliance Officer

Human Resources Director

IT Director

Commercial Manager

Chief Executive Officer

Department Head

General Manager

Management Consultant

Professional Services Director

Strategy 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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