The Construction Contract Agreement Form serves as a fundamental legal document for construction projects in Saudi Arabia, establishing the rights, obligations, and responsibilities of all parties involved in construction works. This document is essential when entering into any significant construction project in Saudi Arabia, whether for government, commercial, or private developments. It incorporates mandatory requirements from Saudi law, including compliance with the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. The agreement covers crucial aspects such as project scope, payment terms, completion timelines, quality standards, and dispute resolution mechanisms, while ensuring alignment with local regulatory requirements and industry practices. It is particularly designed to address the unique aspects of Saudi Arabian construction projects, including local content requirements under Vision 2030, municipality regulations, and environmental compliance standards.
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1. Parties: Identification and details of the contracting parties, including proper legal names, registration numbers, and authorized representatives
2. Background: Context of the agreement, project overview, and basis for the contractual relationship
3. Definitions and Interpretation: Comprehensive definitions of terms used in the contract and rules for contract interpretation
4. Scope of Works: Detailed description of the construction works to be performed, including general obligations
5. Contract Price and Payment Terms: Agreed price, payment schedule, variation mechanisms, and payment procedures compliant with Saudi law
6. Project Timeline: Construction schedule, key milestones, completion dates, and extension provisions
7. Contractor Obligations: Detailed responsibilities including workforce, materials, equipment, and compliance with local regulations
8. Employer Obligations: Client responsibilities including site access, permits, approvals, and information provision
9. Quality and Standards: Required quality standards, compliance with Saudi Building Code, and inspection procedures
10. Health, Safety and Environment: HSE requirements, compliance with Civil Defense regulations and environmental laws
11. Variations and Changes: Procedures for handling changes to scope, price adjustments, and variation orders
12. Testing and Completion: Inspection procedures, testing requirements, and completion certificates
13. Defects Liability: Defects notification period, remediation procedures, and warranties
14. Insurance and Indemnities: Required insurance coverage and indemnification obligations
15. Force Majeure: Force majeure events and consequences, including pandemic-related provisions
16. Termination: Grounds for termination, procedures, and consequences
17. Dispute Resolution: Dispute resolution procedures, including Saudi law requirements for arbitration
18. Governing Law: Confirmation of Saudi law as governing law and Sharia compliance provisions
1. Design Responsibilities: Include when contractor has design obligations in design-build contracts
2. Value Engineering: Include when parties agree to incorporate value engineering provisions
3. Phased Completion: Include for projects with multiple completion phases or sectional completion
4. Advance Payment: Include when advance payment is required, with bank guarantee provisions
5. Performance Security: Include when performance bond or security is required
6. Intellectual Property: Include when design or innovative construction methods are involved
7. Local Content Requirements: Include for compliance with Saudi Vision 2030 localization requirements
8. Subcontracting: Include detailed subcontracting provisions for larger projects
9. Equipment and Materials Supply: Include when specific procurement requirements exist
10. Site Conditions: Include detailed site-related provisions for complex ground conditions
1. Schedule 1 - Works Specification: Detailed technical specifications and scope of works
2. Schedule 2 - Site Plans and Drawings: Construction drawings, site layout, and technical plans
3. Schedule 3 - Project Program: Detailed construction program with milestones and timelines
4. Schedule 4 - Payment Schedule: Breakdown of payments, milestones, and payment procedures
5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities
6. Schedule 6 - Forms of Certificates: Templates for various certificates including completion certificates
7. Schedule 7 - Performance Security Forms: Forms for bank guarantees and performance bonds
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage
9. Schedule 9 - Quality Assurance Plan: Quality control procedures and standards
10. Schedule 10 - HSE Requirements: Detailed health, safety, and environmental requirements
11. Appendix A - Required Permits and Approvals: List of required governmental and regulatory approvals
12. Appendix B - Material Specifications: Detailed specifications for construction materials
13. Appendix C - Testing and Commissioning Procedures: Procedures for testing and commissioning works
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure Development
Real Estate
Oil & Gas
Industrial Development
Healthcare Facilities
Educational Facilities
Hospitality
Retail Development
Transportation
Energy
Mining
Religious Facilities
Sports & Entertainment Facilities
Relevant Teams
Legal
Construction
Commercial
Procurement
Project Management
Engineering
Finance
Risk & Compliance
Operations
Health Safety & Environment
Quality Assurance
Design
Business Development
Contract Administration
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Project Manager
Site Engineer
Quantity Surveyor
Commercial Manager
Procurement Manager
Risk Manager
Technical Director
Operations Director
Chief Executive Officer
Finance Director
Compliance Officer
HSE Manager
Quality Assurance Manager
Design Manager
Claims Manager
Business Development Manager
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