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Project Specific Agreement for Saudi Arabia

Project Specific Agreement Template for Saudi Arabia

A Project Specific Agreement under Saudi Arabian law is a comprehensive contractual document that establishes the terms, conditions, and framework for executing a specific project in the Kingdom. This agreement incorporates essential elements of Saudi law, including Sharia principles, and addresses key aspects such as scope definition, payment terms, project timeline, performance standards, and risk allocation. The document ensures compliance with local regulations while providing a clear structure for project execution, making it suitable for both domestic and international parties engaging in project-based work within Saudi Arabia.

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What is a Project Specific Agreement?

The Project Specific Agreement is a specialized contract used when parties need to establish detailed terms and conditions for executing a particular project within Saudi Arabia. This agreement type is particularly important as it combines project-specific requirements with compliance to Saudi law and Sharia principles. It is commonly used for major infrastructure, construction, technology, or development projects where clear delineation of scope, responsibilities, and risk allocation is crucial. The document typically includes detailed technical specifications, timeline commitments, payment structures, and performance standards, while ensuring alignment with Saudi regulatory requirements and business practices. A Project Specific Agreement is essential when the scope of work is clearly defined, requires specific execution parameters, and involves multiple stakeholders or complex deliverables.

What sections should be included in a Project Specific Agreement?

1. Parties: Identification of contracting parties, including full legal names, commercial registration numbers, and authorized signatories

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of project scope, deliverables, and objectives

5. Duration and Timeline: Project duration, key milestones, and completion dates

6. Payment Terms: Pricing, payment schedule, and payment mechanisms (ensuring Sharia compliance)

7. Parties' Obligations: Detailed responsibilities and obligations of each party

8. Performance Standards: Quality standards, specifications, and performance requirements

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

10. Risk Allocation: Distribution of risks between parties and related responsibilities

11. Warranties and Representations: Parties' warranties regarding capacity, authority, and performance capabilities

12. Liability and Indemnification: Liability limitations and indemnification obligations

13. Force Majeure: Events constituting force majeure and consequent rights and obligations

14. Termination: Grounds for termination and consequences thereof

15. Dispute Resolution: Dispute resolution mechanisms compliant with Saudi law

16. Governing Law: Confirmation of Saudi law as governing law and its interpretation

17. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Project Specific Agreement?

1. Intellectual Property Rights: Required when project involves creation or use of intellectual property

2. Confidentiality: Detailed confidentiality obligations when sensitive information is involved

3. Insurance: Insurance requirements when specific coverage is needed for project risks

4. Security Requirements: When performance bonds or other security instruments are required

5. Local Content Requirements: When project must comply with Saudi Aramco's In-Kingdom Total Value Add (IKTVA) program or similar requirements

6. Health, Safety and Environment: When project involves on-site work or environmental considerations

7. Training and Knowledge Transfer: When project includes training or technology transfer components

8. Subcontracting: When subcontracting is contemplated and needs to be regulated

9. Change Management: When project complexity requires formal change control procedures

What schedules should be included in a Project Specific Agreement?

1. Schedule 1 - Detailed Scope of Work: Technical specifications and detailed work breakdown structure

2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and delivery dates

3. Schedule 3 - Pricing and Payment Schedule: Detailed pricing breakdown and payment milestones

4. Schedule 4 - Key Personnel: List of key personnel and their roles/responsibilities

5. Schedule 5 - Technical Standards: Applicable technical standards and specifications

6. Schedule 6 - Forms and Procedures: Standard forms for notices, changes, and approvals

7. Schedule 7 - Site Access and Requirements: Site-specific requirements and procedures

8. Schedule 8 - Performance Security Forms: Templates for required bonds or guarantees

9. Appendix A - Required Permits and Approvals: List of required regulatory approvals and permits

10. Appendix B - 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

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions























































Clauses















































Relevant Industries

Construction & Infrastructure

Oil & Gas

Technology & Digital Transformation

Manufacturing

Energy & Utilities

Healthcare

Transportation & Logistics

Real Estate Development

Mining & Minerals

Telecommunications

Relevant Teams

Legal

Project Management Office

Commercial

Procurement

Risk & Compliance

Operations

Finance

Technical Services

Business Development

Executive Leadership

Relevant Roles

Project Manager

Contract Manager

Legal Counsel

Commercial Director

Chief Executive Officer

Technical Director

Procurement Manager

Risk Manager

Operations Director

Business Development Manager

Compliance Officer

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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