The Property Development Contract serves as the primary legal instrument for executing property development projects in Saudi Arabia. It is essential for projects ranging from commercial and residential developments to industrial and mixed-use complexes. This contract type must comply with Saudi Arabian law, including the Saudi Building Code, Real Estate Law, and Environmental regulations, while adhering to Sharia principles. The document is typically used when a property owner engages a developer to undertake significant construction or renovation work, requiring detailed specifications, timelines, and quality standards. It includes crucial elements such as payment mechanisms, risk allocation, regulatory compliance requirements, and dispute resolution procedures specific to the Saudi Arabian jurisdiction.
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1. Parties: Identification of the developer, owner, and their authorized representatives
2. Background: Context of the development project, including property details and development objectives
3. Definitions: Defined terms used throughout the contract
4. Scope of Development: Detailed description of the development works, including specifications and standards
5. Contract Documents: Hierarchy and interpretation of contract documents
6. Developer's Obligations: Comprehensive list of developer's responsibilities and commitments
7. Owner's Obligations: Rights and responsibilities of the property owner
8. Time for Completion: Project timeline, milestones, and completion dates
9. Contract Price and Payment: Payment terms, schedule, and mechanisms
10. Quality and Compliance: Quality standards, inspections, and regulatory compliance requirements
11. Variations: Procedures for managing changes to scope or specifications
12. Testing and Completion: Completion criteria, testing procedures, and handover requirements
13. Defects Liability: Defects notification period and remedy procedures
14. Insurance and Liability: Required insurance coverage and liability allocation
15. Force Majeure: Events beyond parties' control and their consequences
16. Termination: Grounds and procedures for contract termination
17. Dispute Resolution: Procedures for resolving disputes under Saudi law
18. Governing Law: Confirmation of Saudi law as governing law and relevant jurisdictional matters
1. Environmental Compliance: Required for projects with significant environmental impact, detailing environmental obligations and compliance requirements
2. Community Relations: For projects in populated areas, addressing community impact and mitigation measures
3. Technology and Smart Buildings: For modern developments incorporating smart technology or specialized systems
4. Cultural Heritage Protection: Required when development is near cultural or historical sites
5. Financing Arrangements: When project involves external financing or specific funding requirements
6. Phase-wise Development: For projects executed in multiple phases
7. Marketing and Sales: When developer has rights/obligations regarding property marketing
8. Sustainability Requirements: For green buildings or developments with specific sustainability goals
1. Property Details: Legal description, title details, and site plans
2. Development Specifications: Detailed technical specifications and drawings
3. Payment Schedule: Detailed breakdown of payments and milestones
4. Project Timeline: Detailed project schedule with milestones
5. Quality Standards: Specific quality requirements and acceptance criteria
6. Required Permits: List of required governmental and regulatory approvals
7. Form of Warranties: Template warranties for materials and workmanship
8. Insurance Requirements: Detailed insurance specifications and coverage requirements
9. Environmental Standards: Environmental compliance requirements and standards
10. Testing Procedures: Detailed testing and commissioning procedures
11. Handover Requirements: Specifications for project handover and documentation
12. Approved Subcontractors: List of pre-approved subcontractors if applicable
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Infrastructure Development
Commercial Property
Residential Property
Mixed-use Development
Industrial Development
Hospitality
Retail
Healthcare Facilities
Educational Facilities
Religious Facilities
Relevant Teams
Legal
Real Estate
Development
Construction
Project Management
Commercial
Finance
Operations
Compliance
Risk Management
Technical Services
Procurement
Relevant Roles
Chief Executive Officer
Development Director
Project Manager
Construction Manager
Legal Counsel
Contract Manager
Property Director
Real Estate Manager
Facilities Manager
Risk Manager
Commercial Director
Technical Director
Compliance Officer
Finance Director
Operations Manager
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