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Cost Plus Construction Agreement Template for Qatar

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Key Requirements PROMPT example:

Cost Plus Construction Agreement

"I need a Cost Plus Construction Agreement under Qatar law for a large-scale hospital construction project starting in March 2025, with specific provisions for medical facility compliance and phased completion requirements."

Document background
The Cost Plus Construction Agreement is particularly suited for complex construction projects in Qatar where the scope of work cannot be fully defined at the outset or where flexibility is required in the execution of works. This agreement type is commonly used in fast-track projects, renovation works, or projects with significant unknown factors. The document provides a detailed framework for managing costs, establishing clear procedures for cost reporting, verification, and payment, while incorporating specific requirements under Qatar law. It includes comprehensive provisions for change management, risk allocation, and dispute resolution, reflecting Qatar's legal and regulatory requirements. The agreement balances the employer's need for cost control with the contractor's right to recover costs plus a reasonable profit, while ensuring compliance with local construction regulations, labor laws, and environmental requirements.
Suggested Sections

1. Parties: Identification of the Employer and Contractor, including their legal status and registered addresses

2. Background: Context of the construction project and the basis for using a cost-plus arrangement

3. Definitions: Detailed definitions including 'Cost', 'Fee', 'Reimbursable Expenses', and other key terms

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

5. Contractor Obligations: Core obligations including quality standards, compliance with laws, and project management requirements

6. Employer Obligations: Key responsibilities including site access, permits, and timely review of cost submissions

7. Cost and Fee Structure: Detailed provisions on allowable costs, fee calculation, and markup percentages

8. Payment Terms: Process for cost submission, verification, and payment, including timing and documentation requirements

9. Time for Completion: Project schedule, milestones, and completion requirements

10. Variations: Process for managing changes to the scope and their impact on costs and fees

11. Quality and Inspection: Quality control requirements and inspection procedures

12. Health, Safety and Environment: HSE requirements compliant with Qatar regulations

13. Insurance and Indemnities: Required insurance coverage and indemnification provisions

14. Force Majeure: Events constituting force majeure and their consequences

15. Suspension and Termination: Rights and procedures for suspension and termination

16. Dispute Resolution: Dispute resolution procedures including Qatar law requirements

17. Governing Law: Confirmation of Qatar law as governing law and jurisdiction provisions

Optional Sections

1. Performance Security: Required when project value exceeds certain thresholds or upon Employer's request

2. Advance Payment: Include when advance payments are contemplated

3. Parent Company Guarantee: Include when Contractor's parent company guarantee is required

4. Defects Liability: Detailed defects liability provisions when extended warranty periods are required

5. Step-in Rights: Include for critical projects where Employer may need to take over

6. Local Content Requirements: Include when specific Qatar local content requirements apply

7. Intellectual Property: Include when design or innovative construction methods are involved

8. Confidentiality: Include for projects with sensitive information or proprietary methods

Suggested Schedules

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

2. Schedule 2 - Cost Categories: Breakdown of allowable direct and indirect costs

3. Schedule 3 - Fee Calculation: Formula and methodology for calculating the Contractor's fee

4. Schedule 4 - Key Personnel: List of key personnel and their roles

5. Schedule 5 - Program: Detailed construction program and milestones

6. Schedule 6 - Site Information: Site details, access points, and restrictions

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

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage

9. Schedule 9 - Performance Security Form: Form of performance security if required

10. Schedule 10 - Cost Control Procedures: Detailed procedures for cost reporting and verification

11. Schedule 11 - HSE Requirements: Detailed health, safety, and environmental requirements

12. Schedule 12 - Quality Assurance Requirements: Quality control and assurance procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Infrastructure Development

Real Estate

Oil & Gas

Healthcare Facilities

Commercial Development

Industrial Development

Hospitality

Education Facilities

Sports Facilities

Transportation

Energy

Relevant Teams

Legal

Commercial

Finance

Operations

Project Management

Procurement

Risk & Compliance

Technical

Construction

Contract Administration

Relevant Roles

Project Director

Construction Manager

Commercial Director

Legal Counsel

Contract Manager

Quantity Surveyor

Chief Financial Officer

Project Controls Manager

Risk Manager

Procurement Manager

Operations Director

Cost Controller

Finance Manager

Technical Director

Compliance Officer

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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