The Basic Building Contract is a fundamental legal instrument used in Saudi Arabia for managing construction projects and establishing clear contractual relationships between project owners and contractors. This document is particularly suitable for straightforward construction projects where a standard form of contract is needed, incorporating essential elements required by Saudi law and construction industry practices. It includes provisions for scope of work, payment mechanisms, project timelines, and quality requirements while ensuring compliance with Saudi Building Code and local regulations. The contract is designed to be compliant with both Sharia principles and Saudi commercial law, making it appropriate for use in the Kingdom's construction sector. It provides a balanced framework that protects the interests of both parties while maintaining alignment with local legal requirements and construction industry standards.
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1. Parties: Identification of the Employer and Contractor, including their full legal names, addresses, and registration details
2. Background: Context of the agreement and brief description of the construction project
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Works: Detailed description of the construction works to be performed by the Contractor
5. Contract Price and Payment Terms: The agreed price, payment schedule, and payment mechanisms
6. Time for Completion: Project timeline, completion date, and provisions for extensions of time
7. Contractor's Obligations: Key responsibilities and obligations of the Contractor including compliance with local regulations
8. Employer's Obligations: Key responsibilities and obligations of the Employer including site access and permits
9. Materials and Workmanship: Standards for materials and workmanship, including compliance with Saudi Building Code
10. Variations: Procedures for handling changes to the scope of works
11. Quality Control and Inspection: Requirements for quality assurance and inspection procedures
12. Health and Safety: Health and safety requirements compliant with Saudi regulations
13. Insurance and Securities: Required insurance coverage and performance securities
14. Defects Liability: Defects liability period and remediation procedures
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes in accordance with Saudi law
17. Governing Law: Confirmation of Saudi law as governing law and relevant jurisdictional matters
1. Force Majeure: Provisions for unforeseen circumstances preventing contract performance - included for higher-value projects
2. Subcontracting: Terms governing the appointment and management of subcontractors - included when subcontracting is anticipated
3. Environmental Protection: Specific environmental requirements - included for projects with significant environmental impact
4. Islamic Finance Compliance: Specific provisions ensuring compliance with Islamic finance principles - included when Islamic financing is involved
5. Liquidated Damages: Pre-agreed damages for specific breaches - included for larger projects or where specific milestones are crucial
6. Site Security: Specific security requirements - included for sensitive locations or high-security projects
7. Technology and IP Rights: Provisions regarding intellectual property and technology - included for projects involving significant technical elements
1. Schedule 1 - Works Description: Detailed technical specifications and scope of works
2. Schedule 2 - Project Programme: Detailed timeline and project milestones
3. Schedule 3 - Payment Schedule: Detailed breakdown of payments and payment milestones
4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions
5. Schedule 5 - Required Permits: List of required permits and responsibilities for obtaining them
6. Schedule 6 - Key Personnel: Details of key project personnel and their responsibilities
7. Schedule 7 - Forms of Securities: Templates for performance bonds and other required securities
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage levels
9. Appendix A - Drawings: Technical drawings and plans
10. Appendix B - Bill of Quantities: Detailed breakdown of quantities and rates
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Public Works
Energy
Healthcare Facilities
Educational Facilities
Relevant Teams
Legal
Construction
Commercial
Procurement
Finance
Operations
Compliance
Risk Management
Technical
Project Controls
Development
Engineering
Relevant Roles
Construction Manager
Project Director
Contract Manager
Legal Counsel
Commercial Manager
Procurement Manager
Site Engineer
Project Engineer
Quantity Surveyor
Risk Manager
Compliance Officer
Technical Director
Development Manager
Operations Manager
Chief Financial Officer
Project Control Manager
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