The Construction Contract Agreement is a fundamental document used in Saudi Arabia to establish legally binding relationships between project owners and contractors for construction works. It is essential for any construction project in Saudi Arabia, whether commercial, residential, or infrastructure-related. The agreement must comply with Saudi law, including the Government Tenders and Procurement Law, Saudi Building Code, and Shariah principles. It typically includes detailed provisions for scope of work, payment terms, project timeline, quality standards, safety requirements, and dispute resolution mechanisms. This document is particularly important given Saudi Arabia's significant construction sector and the ongoing development projects under Vision 2030. The agreement should be tailored to account for local business practices, regulatory requirements, and specific project needs while ensuring enforceability under Saudi law.
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1. Parties: Identification and details of the contracting parties (employer and contractor)
2. Background: Context of the agreement and general project overview
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Price and Payment: Payment terms, method, and schedule of payments
6. Time for Completion: Project timeline, milestones, and completion dates
7. Contractor's Obligations: General and specific obligations of the contractor
8. Employer's Obligations: General and specific obligations of the employer
9. Quality and Standards: Required quality standards and compliance with Saudi Building Code
10. Materials and Workmanship: Standards for materials and workmanship requirements
11. Variations: Procedures for handling changes to the scope of work
12. Testing and Inspection: Requirements for testing and inspection of works
13. Health and Safety: Health and safety requirements and responsibilities
14. Insurance and Liability: Insurance requirements and liability allocation
15. Force Majeure: Force majeure events and their consequences
16. Suspension and Termination: Rights and procedures for suspension and termination
17. Defects Liability: Defects liability period and rectification obligations
18. Dispute Resolution: Procedures for resolving disputes in accordance with Saudi law
19. Governing Law: Confirmation of Saudi law as governing law and related provisions
1. Performance Security: Requirements for performance bonds or guarantees - include for high-value projects
2. Advance Payment: Terms for advance payment and related guarantees - include if advance payment is required
3. Site Conditions: Specific provisions regarding site conditions - include for complex site situations
4. Environmental Protection: Environmental requirements - include for environmentally sensitive projects
5. Local Content Requirements: Saudi local content requirements - include for government or large projects
6. Intellectual Property: IP rights and obligations - include if design or technology transfer is involved
7. Confidentiality: Confidentiality obligations - include for sensitive projects
8. Step-in Rights: Employer's right to step in - include for critical infrastructure projects
9. Liquidated Damages: Specific liquidated damages provisions - include when precise damage calculation is needed
1. Schedule 1 - Scope of Works: Detailed technical specifications and scope description
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of contract price and bill of quantities
3. Schedule 3 - Project Timeline: Detailed project schedule and milestones
4. Schedule 4 - Key Personnel: List of key personnel and their responsibilities
5. Schedule 5 - Site Information: Site details, access rights, and existing conditions
6. Schedule 6 - Forms of Guarantees: Templates for required guarantees and bonds
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage levels
8. Schedule 8 - Quality Assurance Plan: Quality control and assurance procedures
9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements
10. Schedule 10 - Forms of Certificates: Templates for various certificates (completion, payment, etc.)
11. Appendix A - Drawings: Construction drawings and technical diagrams
12. Appendix B - Permits and Licenses: Copies of relevant permits and licenses
13. Appendix C - Technical Submittals: Required technical submissions and approval procedures
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Energy
Industrial
Commercial Property
Residential Property
Healthcare
Education
Hospitality
Religious Buildings
Transportation
Mining
Oil & Gas
Relevant Teams
Legal
Operations
Commercial
Project Management
Engineering
Construction
Procurement
Finance
Risk & Compliance
Health & Safety
Quality Assurance
Technical Services
Contract Administration
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Project Manager
Site Engineer
Chief Engineer
Quantity Surveyor
Commercial Manager
Risk Manager
Procurement Manager
Technical Director
Operations Director
Finance Director
Compliance Officer
HSE Manager
Quality Assurance Manager
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