The Agreement Between Two Parties For Construction Contract is a crucial legal document used in Saudi Arabia for establishing the contractual relationship between project owners/employers and contractors. This agreement is essential for any construction project in Saudi Arabia, whether commercial, residential, or industrial, and must comply with both Saudi law and Sharia principles. The document covers all vital aspects of the construction project, including detailed scope of work, payment structures, timeline commitments, quality standards, and compliance requirements. It incorporates specific Saudi Arabian regulatory requirements, including labor laws, building codes, and environmental regulations. The agreement is particularly important as it provides legal protection for both parties, establishes clear performance metrics, and includes dispute resolution mechanisms aligned with Saudi Arabian legal framework. It is commonly used for both private and public sector projects and can be adapted to various scales of construction work while maintaining compliance with local legal requirements.
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1. Parties: Identification and details of the contracting parties (Owner/Employer and Contractor)
2. Background: Context of the agreement and brief description of the construction project
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Work: Detailed description of the construction works to be performed
5. Contract Price and Payment Terms: Amount payable, payment schedule, and payment conditions
6. Project Timeline: Commencement date, completion date, and key milestones
7. Contractor's Obligations: Detailed responsibilities and duties of the contractor
8. Owner's Obligations: Detailed responsibilities and duties of the owner
9. Materials and Workmanship: Standards and specifications for materials and work quality
10. Health and Safety Requirements: Safety protocols and compliance with Saudi safety regulations
11. Variations and Changes: Procedures for handling changes to scope or specifications
12. Delays and Extensions of Time: Handling of delays and time extension procedures
13. Testing and Completion: Inspection procedures, acceptance criteria, and completion certificates
14. Defects Liability: Warranty period and rectification of defects
15. Insurance and Indemnities: Required insurance coverage and indemnification provisions
16. Force Majeure: Provisions for unforeseen circumstances and their handling
17. Termination: Grounds and procedures for contract termination
18. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions
19. Governing Law: Specification of Saudi law and Sharia compliance
20. General Provisions: Miscellaneous legal provisions including notices, amendments, and waivers
1. Performance Security: Requirements for performance bonds or guarantees, used for larger projects
2. Advance Payment: Terms for advance payments and their security, if applicable
3. Subcontracting: Rules and procedures for subcontracting, if permitted
4. Environmental Compliance: Specific environmental requirements, needed for environmentally sensitive projects
5. Local Content Requirements: Saudi Arabia local content requirements, relevant for government projects
6. Intellectual Property Rights: IP provisions, relevant for projects involving design or technical innovations
7. Confidentiality: Confidentiality obligations, important for sensitive or private projects
8. Site Security: Special security requirements, relevant for high-security or sensitive locations
9. Quality Assurance: Specific quality management systems, important for complex projects
10. Training and Knowledge Transfer: Requirements for training local staff, relevant for technology-intensive projects
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed program of works and milestone dates
3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and bill of quantities
4. Schedule 4 - Payment Schedule: Detailed payment terms and milestone payments
5. Schedule 5 - Site Information: Site details, access requirements, and existing conditions
6. Schedule 6 - Key Personnel: List of key personnel and their qualifications
7. Schedule 7 - Required Insurances: Details of required insurance policies
8. Schedule 8 - Forms of Certificates: Templates for various certificates (completion, payment, etc.)
9. Schedule 9 - Performance Security Forms: Forms for bank guarantees and performance bonds
10. Appendix A - Technical Specifications: Detailed technical requirements and standards
11. Appendix B - Drawings: Construction drawings and design documents
12. Appendix C - Health and Safety Requirements: Detailed safety procedures and requirements
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Energy and Utilities
Healthcare Facilities
Educational Facilities
Hospitality
Retail Development
Transportation Infrastructure
Religious Buildings
Government Facilities
Relevant Teams
Legal
Construction
Project Management
Operations
Finance
Procurement
Risk Management
Quality Assurance
Health and Safety
Commercial
Technical
Compliance
Business Development
Facilities Management
Relevant Roles
Chief Executive Officer
Managing Director
Construction Manager
Project Director
Contract Manager
Legal Counsel
Project Manager
Site Engineer
Quantity Surveyor
Procurement Manager
Finance Director
Risk Manager
Technical Director
Quality Assurance Manager
Health and Safety Manager
Commercial Manager
Operations Director
Business Development Manager
Compliance Officer
Facilities Manager
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