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Construction Short Form Contract for Saudi Arabia

Construction Short Form Contract Template for Saudi Arabia

A streamlined construction contract template designed for use in Saudi Arabia, incorporating essential elements of Saudi law including Sharia principles and local construction regulations. This document provides a simplified framework for construction projects while ensuring compliance with Saudi Arabian legal requirements and industry standards. It includes core provisions for scope, payment, completion, and dispute resolution, structured to be more accessible than complex standard forms while maintaining legal robustness and practical functionality for medium-sized construction projects.

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What is a Construction Short Form Contract?

The Construction Short Form Contract is specifically designed for use in Saudi Arabia where a streamlined approach to construction contracting is required. It is particularly suitable for medium-sized construction projects where the full complexity of standard international forms may be unnecessary, while still maintaining compliance with Saudi law, including Sharia principles and local construction regulations. This document typically includes essential provisions for project execution, payment mechanisms, and dispute resolution, structured in a way that balances simplicity with legal robustness. It is commonly used for projects where the works are well-defined, the risk allocation is straightforward, and the project duration is relatively short. The document incorporates key requirements of Saudi Arabian construction law while remaining accessible to project teams and stakeholders who may not have extensive legal expertise.

What sections should be included in a Construction Short Form Contract?

1. Parties: Identification of the contracting parties, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Brief context of the construction project and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Scope of Works: Clear description of the construction works to be performed

5. Contract Price and Payment: Amount payable, payment schedule, and payment conditions

6. Time for Completion: Project duration, key milestones, and completion date

7. Contractor Obligations: Key responsibilities including quality standards, safety requirements, and compliance with local regulations

8. Employer Obligations: Key responsibilities including site access, permits, and approvals

9. Variations: Process for handling changes to the scope of works

10. Defects Liability: Contractor's obligations regarding defects and rectification period

11. Insurance and Liability: Required insurance coverage and allocation of risks

12. Termination: Grounds and process for contract termination

13. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

14. Notices: Process for formal communications between parties

What sections are optional to include in a Construction Short Form Contract?

1. Force Majeure: Include when specific protection against unforeseen events is required

2. Bonds and Guarantees: Include when performance bonds or advance payment guarantees are required

3. Intellectual Property: Include when design or proprietary methods are involved

4. Confidentiality: Include when sensitive information will be shared

5. Environmental Requirements: Include for projects with significant environmental impacts

6. Local Content Requirements: Include when Saudization or local content requirements apply

7. Subcontracting: Include when subcontracting will be permitted

8. Liquidated Damages: Include when specific compensation for delay or performance failure is required

What schedules should be included in a Construction Short Form Contract?

1. Schedule 1 - Scope of Works: Detailed description of works, specifications, and drawings

2. Schedule 2 - Program of Works: Detailed timeline, milestones, and completion dates

3. Schedule 3 - Price Schedule: Breakdown of contract price, rates, and payment milestones

4. Schedule 4 - Site Information: Details of the construction site and access arrangements

5. Schedule 5 - Key Personnel: List of key personnel and their roles

6. Schedule 6 - Forms of Certificates: Templates for payment, completion, and handover certificates

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

8. Appendix A - Technical Specifications: Detailed technical requirements and standards

9. Appendix B - Health and Safety Requirements: Safety standards and procedures to be followed

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

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Construction

Energy

Healthcare Construction

Educational Facilities

Retail Development

Relevant Teams

Legal

Commercial

Procurement

Operations

Construction

Project Management

Contract Administration

Risk Management

Technical

Business Development

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Commercial Manager

Procurement Manager

Site Engineer

Quantity Surveyor

Legal Counsel

Risk Manager

Operations Director

Technical Director

Chief Engineer

Development Manager

Construction Supervisor

Cost Controller

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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