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Performance And Development Agreement for Saudi Arabia

Performance And Development Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that combines performance requirements with development obligations. The document establishes the framework for project execution, incorporating both construction/development elements and ongoing performance metrics. It ensures compliance with Saudi regulations, including Sharia principles, while defining the responsibilities, timelines, quality standards, and performance indicators for all parties involved. The agreement typically includes detailed technical specifications, milestone-based deliverables, and specific performance measurement criteria, all structured to align with Saudi Arabia's development goals and regulatory requirements.

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What is a Performance And Development Agreement?

The Performance And Development Agreement is essential for projects in Saudi Arabia that combine physical or technical development with specific performance requirements. This document type is particularly relevant in the context of Saudi Vision 2030, where many development projects require careful monitoring of both construction/development phases and subsequent performance metrics. It's commonly used for infrastructure projects, technology implementations, and facility developments where the executing party must meet both development milestones and ongoing performance standards. The agreement ensures compliance with Saudi law, including Sharia principles, while incorporating international best practices in project development and performance management. It typically includes comprehensive technical specifications, clear performance indicators, and detailed monitoring mechanisms, making it suitable for complex projects where both development outcomes and operational performance are critical success factors.

What sections should be included in a Performance And Development Agreement?

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including project overview and parties' objectives

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Work: Detailed description of the development project and performance requirements

5. Performance Metrics: Specific, measurable performance indicators and standards

6. Timeline and Milestones: Project schedule, key dates, and delivery milestones

7. Payment Terms: Financial terms, payment schedule, and pricing structure compliant with Sharia principles

8. Development Standards: Technical specifications and quality standards for development work

9. Compliance Requirements: Regulatory compliance, permits, and approvals required

10. Monitoring and Reporting: Performance monitoring mechanisms and reporting requirements

11. Warranties and Representations: Parties' warranties regarding capacity, authority, and project delivery

12. Risk Allocation: Distribution of risks between parties

13. Term and Termination: Duration of agreement and termination provisions

14. Force Majeure: Provisions for unforeseen circumstances affecting performance

15. Dispute Resolution: Procedures for resolving disputes under Saudi law

16. Governing Law: Confirmation of Saudi law as governing law and compliance with Sharia principles

What sections are optional to include in a Performance And Development Agreement?

1. Environmental Compliance: Required when project has significant environmental impact - details environmental obligations and standards

2. Technology Transfer: Used when agreement includes transfer of technical knowledge or intellectual property

3. Local Content Requirements: Required for projects subject to Saudi Arabia's local content requirements

4. Security Package: Optional section for performance bonds or guarantees

5. Training and Knowledge Transfer: Required when agreement includes capacity building or training components

6. Insurance Requirements: Detailed insurance obligations beyond standard coverage

7. Step-In Rights: Required for critical infrastructure or government-related projects

8. Islamic Finance Provisions: Required when project involves Islamic financing structures

What schedules should be included in a Performance And Development Agreement?

1. Schedule 1 - Scope of Work: Detailed technical specifications and requirements

2. Schedule 2 - Performance Standards: Detailed performance metrics and measurement criteria

3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and deadlines

4. Schedule 4 - Payment Schedule: Detailed breakdown of payments, including milestone payments

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

6. Schedule 6 - Required Permits: List of required governmental approvals and permits

7. Schedule 7 - Testing and Acceptance Procedures: Detailed procedures for testing and accepting deliverables

8. Schedule 8 - Form of Performance Bond: Template for performance security if required

9. Appendix A - Site Plans and Drawings: Technical drawings and site specifications

10. Appendix B - Quality Assurance Plan: Detailed quality control procedures and standards

11. Appendix C - HSE Requirements: Health, Safety and Environmental requirements and procedures

12. Appendix D - Forms and Certificates: Standard forms for notices, certificates, and other documents

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

Infrastructure Development

Real Estate

Technology and Digital Transformation

Industrial Development

Energy and Utilities

Healthcare Facilities

Education Facilities

Transportation

Smart Cities

Manufacturing

Tourism Development

Relevant Teams

Legal

Operations

Project Management

Commercial

Technical

Compliance

Finance

Risk Management

Quality Assurance

Construction

Development

Contract Administration

Relevant Roles

Project Director

Development Manager

Construction Manager

Performance Manager

Contract Administrator

Technical Director

Chief Operating Officer

Legal Counsel

Compliance Officer

Project Engineer

Quality Assurance Manager

Commercial Director

Risk Manager

Operations Director

Finance Director

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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