The General Contractor Contract With Owner is a fundamental agreement used in construction projects throughout Saudi Arabia, establishing the primary contractual relationship between the project owner and the main contractor responsible for construction works. This document is essential for any significant construction project in Saudi Arabia, whether commercial, industrial, or infrastructure development. It must comply with Saudi Arabian law, including the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. The contract typically covers all aspects of construction execution, from project commencement to completion, including payment terms, variations, quality standards, and dispute resolution mechanisms. It's particularly important for projects requiring comprehensive risk allocation, detailed technical specifications, and clear delineation of responsibilities between the owner and contractor while ensuring adherence to local content requirements and Saudization policies.
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1. Parties: Identification of the Owner and General Contractor, including commercial registration details and authorized signatories
2. Background: Project context, purpose, and basis for the agreement
3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and order of precedence of contract documents
4. Scope of Work: Detailed description of the works to be performed, including general and specific obligations of the Contractor
5. Contract Price and Payment: Price, payment terms, milestones, VAT provisions, and retention requirements
6. Project Timeline: Commencement date, completion date, project schedule, and provisions for extensions of time
7. Contractor's Obligations: General and specific obligations, including compliance with laws, permits, and approvals
8. Owner's Obligations: Site access, permits, approvals, and other owner responsibilities
9. Materials and Workmanship: Quality standards, testing, inspection, and approval requirements
10. Variations: Procedures for changes to scope, pricing, and timeline
11. Health, Safety and Environment: HSE requirements and compliance with Saudi regulations
12. Subcontracting: Conditions and limitations for subcontracting, including Saudization requirements
13. Insurance and Securities: Required insurance coverage, performance bonds, and advance payment guarantees
14. Defects Liability: Defects notification period, remediation obligations, and warranties
15. Suspension and Termination: Rights and procedures for suspension and termination of the contract
16. Force Majeure: Force majeure events and consequences under Saudi law
17. Dispute Resolution: Dispute resolution procedures compliant with Saudi law
18. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction provisions
19. General Provisions: Miscellaneous provisions including notices, assignment, and entire agreement
1. Advance Payment: Include when advance payment is part of the payment terms
2. Intellectual Property: Include when the project involves significant design elements or proprietary technology
3. Confidentiality: Include for projects involving sensitive information or proprietary designs
4. Local Content Requirements: Include detailed local content requirements for large projects subject to Saudi Aramco or government requirements
5. Site Conditions: Include for projects where ground conditions or existing structures pose significant risks
6. Equipment and Temporary Works: Include for projects requiring significant temporary works or contractor-supplied equipment
7. Testing and Commissioning: Include for projects requiring complex testing and commissioning procedures
8. Training and Technology Transfer: Include when the project requires contractor to provide training to owner's personnel
1. Schedule 1 - Scope of Work: Detailed technical specifications and drawings
2. Schedule 2 - Project Schedule: Detailed timeline, milestones, and critical path
3. Schedule 3 - Payment Schedule: Breakdown of contract price, payment milestones, and currencies
4. Schedule 4 - Site Information: Site details, access points, and existing conditions
5. Schedule 5 - Key Personnel: List of key personnel from both parties and their roles
6. Schedule 6 - Forms of Securities: Templates for performance bond, advance payment guarantee
7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements
8. Schedule 8 - Quality Assurance Requirements: Quality standards, testing procedures, and acceptance criteria
9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and minimum coverage
10. Schedule 10 - Forms of Certificates: Templates for completion certificates, payment certificates
11. Appendix A - Required Permits and Approvals: List of permits and responsibilities for obtaining them
12. Appendix B - Technical Standards: Applicable technical standards and codes
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Oil & Gas
Industrial
Commercial Buildings
Healthcare Facilities
Educational Facilities
Residential Development
Transportation
Energy
Water & Utilities
Mining
Petrochemicals
Religious Buildings
Relevant Teams
Legal
Operations
Commercial
Procurement
Project Management
Construction
Finance
Risk Management
Quality Assurance
Health Safety Environment
Technical
Design
Contract Administration
Claims
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Project Manager
Commercial Manager
Chief Executive Officer
Operations Director
Technical Director
Risk Manager
Procurement Manager
Finance Director
Quality Assurance Manager
HSE Manager
Site Manager
Cost Controller
Claims Manager
Design Manager
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