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Agreement With Builder For (Construction) for Saudi Arabia

Agreement With Builder For (Construction) Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions between a property owner/employer and a construction company/builder for the execution of construction works. The document incorporates Sharia Law principles and complies with Saudi building regulations, labor laws, and environmental standards. It details the scope of work, payment terms, timeline, quality requirements, and dispute resolution mechanisms while ensuring alignment with local municipality requirements and the Saudi Building Code (SBC). The agreement includes provisions for warranties, defects liability, and other construction-specific obligations within the Saudi legal framework.

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What is a Agreement With Builder For (Construction)?

The Agreement With Builder For (Construction) is a crucial legal document used in Saudi Arabia when engaging a construction company or builder for executing construction works. This agreement is essential for both public and private sector projects, particularly in the context of Saudi Arabia's expanding construction industry and Vision 2030 initiatives. The document incorporates mandatory requirements under Saudi law, including compliance with Sharia principles, the Saudi Building Code, local municipality regulations, and environmental standards. It provides comprehensive coverage of construction-specific elements such as scope of works, payment terms, quality standards, and dispute resolution mechanisms, while accounting for local business practices and regulatory requirements. The agreement is structured to protect both parties' interests while ensuring project delivery aligns with Saudi Arabian construction industry standards and legal requirements.

What sections should be included in a Agreement With Builder For (Construction)?

1. Parties: Identification of the employer/owner and the contractor/builder, including their full legal names, addresses, and registration details

2. Background: Context of the agreement, including project overview and basis for entering into the contract

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical construction terms and contract-specific terminology

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

5. Contract Price and Payment Terms: Amount payable, payment schedule, advance payments, retention amounts, and final payment conditions

6. Project Timeline: Commencement date, completion date, project phases, and milestone dates

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

8. Employer's Obligations: Site access, permits, approvals, and other owner responsibilities

9. Materials and Workmanship: Quality standards, testing requirements, and approval processes

10. Variations: Procedures for changes to scope, pricing of variations, and approval process

11. Site Conditions and Safety: Site management, safety requirements, and environmental protection measures

12. Supervision and Quality Control: Inspection rights, quality assurance procedures, and supervision requirements

13. Delays and Extensions of Time: Provisions for dealing with delays, extension of time claims, and liquidated damages

14. Defects Liability: Defects notification period, remediation requirements, and warranties

15. Insurance and Indemnities: Required insurance coverage and indemnification obligations

16. Force Majeure: Events constituting force majeure and consequences

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

18. Dispute Resolution: Dispute resolution procedures, applicable law, and jurisdiction

19. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

What sections are optional to include in a Agreement With Builder For (Construction)?

1. Performance Security: Requirements for performance bonds or guarantees - include when project value exceeds certain thresholds

2. Advance Payment: Terms for advance payment and associated guarantee - include when advance payment is required

3. Subcontracting: Rules and procedures for subcontracting - include when subcontracting is anticipated

4. Equipment and Temporary Works: Provisions regarding construction equipment and temporary structures - include for complex projects

5. Testing and Commissioning: Detailed testing requirements - include for technical installations

6. Intellectual Property Rights: IP ownership and licenses - include when design or innovative methods are involved

7. Environmental Protection: Specific environmental requirements - include for environmentally sensitive projects

8. Local Content Requirements: Saudi local content requirements - include for government or large-scale projects

What schedules should be included in a Agreement With Builder For (Construction)?

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

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of contract price, bill of quantities, and rates

3. Schedule 3 - Project Timeline: Detailed program of works, including milestones and critical path

4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures

5. Schedule 5 - Key Personnel: List of key personnel from both parties and their roles

6. Schedule 6 - Required Insurances: Detailed insurance requirements and coverage levels

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

8. Schedule 8 - Quality Assurance Plan: Detailed quality control procedures and requirements

9. Appendix A - Site Plan and Drawings: Construction drawings, site layout, and technical plans

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

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions

































































Clauses



















































Relevant Industries

Real Estate Development

Commercial Construction

Residential Construction

Infrastructure Development

Industrial Construction

Healthcare Facilities

Education Facilities

Hospitality

Retail Development

Government Infrastructure

Religious Buildings

Sports and Entertainment Facilities

Mixed-use Development

Transportation Infrastructure

Relevant Teams

Legal

Construction

Project Management

Procurement

Finance

Operations

Risk Management

Commercial

Technical

Quality Assurance

Health and Safety

Compliance

Business Development

Contract Administration

Relevant Roles

Chief Executive Officer

Managing Director

Construction Manager

Project Director

Legal Counsel

Contract Manager

Procurement Manager

Project Manager

Site Engineer

Quantity Surveyor

Risk Manager

Commercial Director

Technical Director

Operations Manager

Finance Director

Compliance Officer

Health and Safety Manager

Quality Assurance Manager

Cost Controller

Business Development 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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