The Building Work Agreement is a fundamental contract used in the Saudi Arabian construction industry to establish the legal and commercial relationship between project owners and contractors. It is essential for any construction project in Saudi Arabia, from commercial buildings to residential developments. The agreement must comply with Saudi law, including the Saudi Building Code, Contractors Classification Law, and Sharia principles. It typically includes detailed specifications of the works, payment mechanisms, project timelines, quality standards, and risk allocation provisions. This document is particularly important given Saudi Arabia's extensive construction sector and the complex regulatory requirements governing building works. It serves as the primary contract document for construction projects and should be customized based on project size, complexity, and specific requirements while maintaining compliance with local regulations.
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1. Parties: Identification of the employer and contractor, including their full legal names, registration details, and authorized representatives
2. Background: Context of the agreement, including project overview and basis for entering into the contract
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Price and Payment: Payment terms, schedule of payments, and payment procedures
6. Project Timeline: Commencement date, completion date, and key milestones
7. Contractor Obligations: Primary responsibilities and obligations of the contractor
8. Employer Obligations: Primary responsibilities and obligations of the employer
9. Materials and Workmanship: Quality standards, specifications, and requirements for materials and work
10. Variations: Procedures for handling changes to the scope of work
11. Health and Safety: Safety requirements and procedures on site
12. Insurance and Liability: Insurance requirements and allocation of risks
13. Warranties and Defects: Warranty periods and defect rectification procedures
14. Suspension and Termination: Rights and procedures for suspension and termination of works
15. Force Majeure: Provisions for handling unforeseen circumstances and their consequences
16. Dispute Resolution: Procedures for resolving disputes between parties
17. Governing Law: Specification of Saudi law as governing law and relevant jurisdictional matters
1. Performance Security: Requirements for performance bonds or guarantees, optional for smaller projects
2. Advance Payment: Terms for advance payments and related guarantees, if applicable
3. Subcontracting: Rules and procedures for subcontracting, if permitted
4. Site Conditions: Specific provisions relating to site conditions and underground works, relevant for complex sites
5. Environmental Protection: Specific environmental requirements, necessary for environmentally sensitive projects
6. Quality Control: Detailed quality control procedures, important for complex technical projects
7. Intellectual Property: IP rights provisions, relevant when design elements are involved
8. Local Content Requirements: Provisions for meeting Saudi local content requirements, if applicable to project size/type
1. Schedule 1 - Works Specification: Detailed technical specifications of the works to be performed
2. Schedule 2 - Site Plans and Drawings: Technical drawings, site plans, and architectural designs
3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and prices
4. Schedule 4 - Project Timeline: Detailed project schedule including milestones and completion dates
5. Schedule 5 - Payment Schedule: Detailed payment terms and milestone payments
6. Schedule 6 - Key Personnel: List of key personnel from both parties and their roles
7. Schedule 7 - Required Insurances: Detailed insurance requirements and coverage levels
8. Schedule 8 - Forms of Certificates: Templates for various certificates including completion certificates
9. Appendix A - Required Permits: List of required permits and responsibilities for obtaining them
10. Appendix B - Safety Procedures: Detailed health and safety procedures and requirements
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Industrial Development
Commercial Property
Residential Development
Hospitality
Healthcare
Education
Retail
Manufacturing
Energy
Government and Public Works
Relevant Teams
Legal
Construction
Project Management
Commercial
Procurement
Finance
Operations
Technical
Risk Management
Quality Control
Health and Safety
Design
Engineering
Contract Administration
Relevant Roles
Construction Manager
Project Director
Contract Manager
Legal Counsel
Project Manager
Chief Executive Officer
Commercial Director
Technical Director
Risk Manager
Procurement Manager
Finance Director
Operations Manager
Site Manager
Quality Control Manager
Health and Safety Manager
Cost Controller
Quantity Surveyor
Architect
Civil Engineer
MEP Engineer
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