The Main Contractor And Subcontractor Agreement is essential for construction projects in Saudi Arabia where specialized works need to be delegated to qualified subcontractors. This document is used when a main contractor wishes to formally engage a subcontractor to perform specific portions of a larger construction project, ensuring compliance with Saudi Arabian law, including Sharia principles and construction regulations. The agreement typically follows from a main contract with a project owner and includes detailed provisions for works execution, payment mechanisms, quality control, and risk allocation. It's particularly important in the Saudi Arabian context where strict regulatory compliance is required, including adherence to Saudi Contractors Authority regulations and local content requirements. The document serves to clearly define responsibilities, establish performance standards, and protect both parties' interests while maintaining alignment with the main contract obligations.
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1. Parties: Identification and details of the Main Contractor and Subcontractor, including their commercial registration numbers and addresses
2. Background: Context of the agreement, including reference to the main contract and project details
3. Definitions and Interpretation: Key terms used in the agreement and rules for interpretation
4. Scope of Works: Detailed description of the subcontracted works, including specifications and standards
5. Contract Price and Payment Terms: Amount payable, payment schedule, retention, and payment procedures
6. Duration and Programme: Project timeline, milestones, and completion dates
7. Subcontractor's Obligations: Key responsibilities including quality standards, safety requirements, and compliance with laws
8. Main Contractor's Obligations: Responsibilities including site access, coordination, and information provision
9. Materials and Workmanship: Quality requirements, approval processes, and inspection rights
10. Health, Safety and Environment: Safety requirements, environmental compliance, and related procedures
11. Insurance and Liability: Required insurance coverage and allocation of risks
12. Variations: Procedures for changes to scope, pricing, or timeline
13. Suspension and Termination: Rights and procedures for suspending or terminating the agreement
14. Defects Liability: Warranty period, rectification of defects, and related obligations
15. Dispute Resolution: Procedures for resolving disputes, including Saudi law requirements
16. General Provisions: Standard clauses including notices, assignment, and entire agreement
1. Performance Security: Requirements for performance bonds or guarantees, optional if not required by main contract
2. Intellectual Property Rights: IP provisions, needed if design or technical solutions are part of scope
3. Force Majeure: Provisions for unforeseen events, recommended for longer-term projects
4. Local Content Requirements: Saudi Aramco or government local content requirements, if applicable
5. Advance Payment: Terms for advance payments, if agreed between parties
6. Equipment and Facilities: Provisions for shared equipment or facilities, if relevant to project
7. Confidentiality: Non-disclosure provisions, if sensitive information is involved
8. Step-in Rights: Main contractor's right to take over subcontracted works, for critical projects
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Contract Price Breakdown: Detailed pricing, rates, and payment milestones
3. Schedule 3 - Programme of Works: Detailed timeline and project schedule
4. Schedule 4 - Key Personnel: List of key staff and their qualifications
5. Schedule 5 - Forms and Procedures: Standard forms for variations, payments, and certificates
6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and coverage limits
7. Schedule 7 - Quality Assurance Requirements: Quality control procedures and standards
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental procedures
9. Appendix A - Main Contract Extracts: Relevant portions of the main contract
10. Appendix B - Technical Submittals: Required technical documentation and submissions
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Oil & Gas
Real Estate Development
Industrial
Energy
Transportation
Mining
Commercial Development
Residential Development
Healthcare Construction
Education Construction
Hospitality Construction
Relevant Teams
Legal
Contracts
Commercial
Operations
Procurement
Project Management
Finance
Risk Management
Quality Control
Health Safety Environment
Technical
Business Development
Relevant Roles
Construction Manager
Project Manager
Contracts Manager
Legal Counsel
Commercial Manager
Procurement Manager
Operations Director
Technical Director
Site Supervisor
Quality Control Manager
HSE Manager
Finance Manager
Risk Manager
Estimating Manager
Business Development Manager
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