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Contract For Construction Work for Saudi Arabia

Contract For Construction Work Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions for construction works between the project owner/developer and the contractor. This document outlines the scope of work, payment terms, timelines, quality standards, and compliance requirements in accordance with Saudi building regulations and construction laws. It includes provisions for risk allocation, dispute resolution mechanisms, and addresses specific requirements under Saudi labor law and environmental regulations. The contract incorporates local content requirements and ensures alignment with Saudi Vision 2030 construction sector objectives.

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Contract For Construction Work

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What is a Contract For Construction Work?

The Contract For Construction Work is a fundamental legal instrument used in Saudi Arabia for establishing binding agreements between project owners/developers and contractors for construction projects. This document is essential for any construction undertaking in Saudi Arabia, whether commercial, residential, or infrastructure development. It must comply with Saudi Arabian law, including the Government Tenders and Procurement Law, Saudi Building Code, and relevant municipal regulations. The contract typically includes detailed specifications of works, payment mechanisms, timelines, quality standards, and dispute resolution procedures. It's particularly important as it incorporates local content requirements under Saudi Vision 2030 and addresses specific regional considerations such as environmental conditions and labor requirements. This type of contract is commonly used for both public and private sector projects and can be adapted for various scales of construction work, from single buildings to large-scale developments.

What sections should be included in a Contract For Construction Work?

1. Parties: Identification of the employer/owner and contractor, including full legal names, addresses, and registration details

2. Background: Context of the construction project, including project overview and parties' intentions

3. Definitions and Interpretation: Detailed definitions of terms used throughout the contract and rules of interpretation

4. Scope of Works: Detailed description of the construction works to be performed, including specifications and standards

5. Contract Price and Payment Terms: Amount payable, payment schedule, milestones, and payment procedures

6. Project Timeline: Commencement date, completion date, and key milestone dates

7. Contractor's Obligations: Detailed responsibilities including workmanship, materials, safety, and compliance with laws

8. Employer's Obligations: Site access, permits, approvals, and other owner responsibilities

9. Materials and Workmanship: Quality standards, testing requirements, and approval processes

10. Variations and Changes: Procedures for handling changes to scope, pricing, or timeline

11. Health and Safety: Safety requirements, procedures, and responsibilities

12. Insurance and Indemnities: Required insurance coverage and indemnification obligations

13. Warranties and Defects Liability: Warranty terms, defects notification period, and remediation procedures

14. Force Majeure: Definition of force majeure events and their consequences

15. Termination: Grounds for termination and consequences

16. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

17. Governing Law: Specification of Saudi law as governing law and jurisdiction

18. General Provisions: Standard boilerplate clauses including notices, assignment, and severability

What sections are optional to include in a Contract For Construction Work?

1. Phased Completion: Used when the project involves multiple phases with separate completion dates

2. Equipment Supply: Required when specific equipment procurement is part of the contract scope

3. Subcontracting: Detailed provisions for when subcontracting is permitted and its regulation

4. Performance Security: When additional security or performance bonds are required

5. Environmental Protection: Detailed environmental requirements for environmentally sensitive projects

6. Technology and IP Rights: Required when the project involves significant technological components or IP

7. Local Content Requirements: Specific provisions for meeting Saudi local content requirements

8. Training and Knowledge Transfer: When the contract includes training of employer's personnel

9. Advance Payment: Terms for advance payments when required for project mobilization

10. Site Security: Special security requirements for sensitive or high-security locations

What schedules should be included in a Contract For Construction Work?

1. Schedule 1 - Technical Specifications: Detailed technical requirements and specifications for the works

2. Schedule 2 - Site Plan and Drawings: Construction drawings, site layout, and technical plans

3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and prices

4. Schedule 4 - Project Timeline: Detailed project schedule including milestones and critical path

5. Schedule 5 - Payment Schedule: Detailed payment terms, milestones, and procedures

6. Schedule 6 - Key Personnel: List of key personnel from both parties with roles and responsibilities

7. Schedule 7 - Required Insurances: Detailed insurance requirements and coverage levels

8. Schedule 8 - Forms and Certificates: Template forms for completion certificates, payment applications, etc.

9. Schedule 9 - Quality Assurance Plan: Quality control procedures and requirements

10. Schedule 10 - HSE Requirements: Detailed health, safety, and environmental requirements

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

Real Estate Development

Construction

Infrastructure

Commercial Property

Residential Property

Industrial Development

Healthcare Facilities

Education Facilities

Hospitality

Retail Development

Energy & Utilities

Transportation

Religious Buildings

Government Buildings

Mixed-Use Development

Relevant Teams

Legal

Operations

Commercial

Procurement

Project Management

Construction

Finance

Risk Management

Compliance

Technical Services

Quality Assurance

Health and Safety

Business Development

Contract Administration

Engineering

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Legal Counsel

Chief Executive Officer

Chief Operating Officer

Development Director

Commercial Director

Procurement Manager

Site Manager

Quantity Surveyor

Chief Financial Officer

Risk Manager

Technical Director

Operations Manager

Compliance Officer

Health and Safety Manager

Quality Assurance Manager

Cost Controller

Project Engineer

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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