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Consultant Engagement Agreement for Saudi Arabia

Consultant Engagement Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions for engaging consulting services. This document outlines the relationship between a client and a consultant, detailing the scope of services, compensation, confidentiality obligations, intellectual property rights, and other key terms while ensuring compliance with Saudi labor laws and Sharia principles. It provides a structured framework for professional consulting relationships while incorporating necessary provisions for local regulatory compliance and dispute resolution mechanisms specific to the Saudi Arabian jurisdiction.

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What is a Consultant Engagement Agreement?

The Consultant Engagement Agreement is essential for businesses and organizations operating in Saudi Arabia who wish to formally engage consulting services while ensuring compliance with local laws and regulations. This document is particularly crucial given Saudi Arabia's unique legal framework, which combines modern commercial law with Sharia principles. The agreement typically covers key aspects such as scope of services, payment terms, confidentiality, intellectual property rights, and dispute resolution mechanisms. It's designed to protect both parties' interests while ensuring alignment with Saudi Labor Law, Foreign Investment Law, and other relevant regulations. The document is adaptable for various consulting arrangements, from individual consultants to large consulting firms, and can be used across different sectors while maintaining compliance with Saudi Arabian legal requirements.

What sections should be included in a Consultant Engagement Agreement?

1. Parties: Identification of the client and consultant, including full legal names, addresses, and commercial registration details

2. Background: Context of the engagement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement, including Services, Deliverables, Confidential Information, and Intellectual Property

4. Scope of Services: Detailed description of the consulting services to be provided

5. Term and Duration: Period of the engagement, including start date and duration

6. Consultant's Obligations: Key responsibilities and commitments of the consultant

7. Client's Obligations: Responsibilities of the client, including provision of information and cooperation

8. Fees and Payment Terms: Compensation structure, payment schedule, and invoicing requirements

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Intellectual Property Rights: Ownership and rights related to work products and pre-existing IP

11. Representations and Warranties: Standard warranties regarding capacity, authority, and quality of services

12. Termination: Grounds for termination and consequences thereof

13. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Consultant Engagement Agreement?

1. Non-Competition: Restrictions on consultant's competitive activities - include when protecting market position is crucial

2. Force Majeure: Provisions for unforeseen circumstances - particularly relevant in long-term engagements

3. Insurance: Requirements for professional indemnity and other insurance - include for high-risk consultancy services

4. Data Protection: Compliance with data protection laws - include when personal data processing is involved

5. Anti-Corruption: Compliance with anti-corruption laws - include when dealing with government entities or international consultants

6. Zakat and Tax: Tax-related obligations - include when engaging foreign consultants or for long-term engagements

7. Assignment and Subcontracting: Rights to transfer obligations - include when flexibility in service delivery is needed

8. Shariah Compliance: Specific provisions ensuring compliance with Islamic law - include when explicitly required by parties

What schedules should be included in a Consultant Engagement Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and timelines

2. Schedule 2 - Fee Schedule: Detailed fee structure, payment milestones, and expense policies

3. Schedule 3 - Key Personnel: List of key consultant personnel assigned to the project

4. Schedule 4 - Service Levels: Performance metrics and quality standards for the services

5. Schedule 5 - Client Materials: List of materials and information to be provided by the client

6. Appendix A - Compliance Requirements: Specific regulatory and compliance requirements applicable to the engagement

7. Appendix B - Form of Invoice: Template for invoices meeting Saudi tax authority requirements

8. Appendix C - Project Timeline: Detailed project schedule and milestone dates

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

Information Technology

Management Consulting

Financial Services

Healthcare

Education

Oil and Gas

Construction

Manufacturing

Telecommunications

Professional Services

Real Estate

Government Services

Retail

Transportation and Logistics

Energy and Utilities

Relevant Teams

Legal

Procurement

Human Resources

Finance

Operations

Compliance

Risk Management

Commercial

Business Development

Project Management

Contract Administration

Relevant Roles

Chief Executive Officer

Legal Counsel

Procurement Manager

Human Resources Director

Project Manager

Operations Director

Finance Manager

Compliance Officer

Business Development Manager

Department Head

Managing Director

Commercial Director

Contract Manager

Risk Manager

Chief Financial Officer

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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