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Builder Developer Agreement for Saudi Arabia

Builder Developer Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the contractual relationship between a property developer and a building contractor for the execution of construction works. The document incorporates Sharia-compliant provisions and adheres to Saudi building regulations, detailing the scope of works, payment terms, quality standards, and compliance requirements. It includes specific provisions for local construction practices, municipality requirements, and environmental regulations while ensuring alignment with Saudi Arabia's Vision 2030 development goals and construction sector regulations.

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Builder Developer Agreement

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What is a Builder Developer Agreement?

The Builder Developer Agreement is a crucial document used in Saudi Arabian construction projects to establish a legally binding relationship between property developers and construction companies. This agreement is particularly important in the context of Saudi Arabia's rapidly developing construction sector and must comply with both Sharia principles and local building regulations. The document is typically used when initiating major construction projects and includes detailed provisions for project execution, payment structures, quality control, and regulatory compliance. It serves as the primary contract governing the construction phase of development projects, incorporating specific requirements from Saudi building codes, environmental regulations, and labor laws. The agreement is designed to protect both parties' interests while ensuring project delivery aligns with Saudi Arabia's construction standards and development objectives.

What sections should be included in a Builder Developer Agreement?

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

2. Background: Context of the development project, including property details and development objectives

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Project Timeline: Construction schedule, milestones, and completion dates

6. Contract Price and Payment Terms: Payment schedule, amounts, and mechanisms in compliance with Sharia principles

7. Builder's Obligations: Detailed responsibilities of the Builder including quality standards, safety requirements, and regulatory compliance

8. Developer's Obligations: Responsibilities of the Developer including site access, permits, and approvals

9. Materials and Equipment: Specifications for construction materials and equipment requirements

10. Quality Control and Inspection: Quality assurance processes and inspection requirements

11. Variations and Changes: Procedures for handling changes to scope or specifications

12. Warranties and Defects Liability: Builder's warranties and defect rectification obligations

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

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Termination: Grounds and procedures for contract termination

16. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

What sections are optional to include in a Builder Developer Agreement?

1. Environmental Compliance: Required when the project has significant environmental implications or requires environmental permits

2. Community Relations: Needed for projects in populated areas or with community impact

3. Security Requirements: Required for projects with specific security needs or in sensitive locations

4. Technology and BIM Requirements: Included when project requires specific technical or Building Information Modeling standards

5. Value Engineering: Optional section for projects where cost optimization is a key consideration

6. Subcontracting: Required when subcontractors will be extensively used in the project

7. Intellectual Property Rights: Needed when custom designs or innovative construction methods are involved

What schedules should be included in a Builder Developer Agreement?

1. Schedule 1 - Project Specifications: Detailed technical specifications and requirements for the construction work

2. Schedule 2 - Site Plans and Drawings: Architectural, structural, and other relevant drawings

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment milestones and amounts

4. Schedule 4 - Construction Timeline: Detailed project schedule with milestones and deadlines

5. Schedule 5 - Quality Standards: Specific quality requirements and applicable standards

6. Schedule 6 - Form of Warranties: Template warranties and guarantees required from the Builder

7. Schedule 7 - Required Insurance: Details of required insurance coverage and limits

8. Schedule 8 - Key Personnel: List of key project personnel and their responsibilities

9. Schedule 9 - Permits and Approvals: List of required regulatory permits and approvals

10. Appendix A - Health and Safety Requirements: Detailed health and safety standards and procedures

11. Appendix B - Environmental Management Plan: Environmental protection measures and compliance requirements

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

Construction

Infrastructure Development

Commercial Property

Residential Development

Industrial Development

Hospitality

Healthcare Facilities

Education Facilities

Retail Development

Mixed-use Development

Relevant Teams

Legal

Operations

Construction

Development

Commercial

Finance

Procurement

Compliance

Risk Management

Project Management

Technical Services

Design

Property

Relevant Roles

Development Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Chief Executive Officer

Operations Director

Commercial Director

Technical Director

Site Manager

Quantity Surveyor

Chief Financial Officer

Risk Manager

Compliance Officer

Property Development Manager

Construction Supervisor

Procurement Manager

Design 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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