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Public Sector Agreement for Saudi Arabia

Public Sector Agreement Template for Saudi Arabia

A comprehensive contractual framework governed by Saudi Arabian law, specifically designed for agreements between government entities and private sector contractors. This document complies with the Government Tenders and Procurement Law (GTPL) and its implementing regulations, incorporating Sharia principles and Saudi public procurement requirements. It includes detailed provisions for scope, performance standards, payment terms, compliance requirements, and dispute resolution mechanisms, while ensuring alignment with Saudi Arabia's Vision 2030 objectives and local content requirements.

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Public Sector Agreement

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What is a Public Sector Agreement?

This Public Sector Agreement template is essential for formalizing contractual relationships between Saudi Arabian government entities and private sector contractors. It is designed to comply with the Government Tenders and Procurement Law (GTPL), its implementing regulations, and other relevant Saudi legislation. The document should be used for any significant procurement of goods, services, or works by government entities, ensuring proper governance, transparency, and value for money in public spending. It includes comprehensive provisions for local content requirements, Saudization obligations, and alignment with Vision 2030 objectives. The agreement template incorporates necessary safeguards for public funds while maintaining fair and balanced terms for private sector engagement, making it suitable for both standard procurement and complex project implementation.

What sections should be included in a Public Sector Agreement?

1. Parties: Identification of the government entity and the contractor, including authorized signatories

2. Background: Context of the agreement, reference to tender process, and any relevant procurement decisions

3. Definitions and Interpretation: Defined terms, interpretation rules, and language requirements (Arabic/English precedence)

4. Scope of Services/Works: Detailed description of the services or works to be provided

5. Duration and Timelines: Contract term, key milestones, and delivery schedules

6. Payment Terms: Pricing, payment schedule, invoicing requirements, and VAT provisions

7. Performance Standards: Quality standards, KPIs, and performance monitoring mechanisms

8. Contractor Obligations: Key responsibilities, compliance requirements, and warranties

9. Government Entity Obligations: Responsibilities of the government entity, including approvals and access

10. Change Control: Procedures for managing changes to scope, pricing, or other terms

11. Governance and Reporting: Contract management, reporting requirements, and oversight procedures

12. Compliance with Laws: Regulatory compliance, permits, and adherence to Saudi laws

13. Confidentiality: Protection of confidential information and official secrets

14. Force Majeure: Events beyond reasonable control and their handling

15. Termination: Termination rights, procedures, and consequences

16. Dispute Resolution: Dispute resolution procedures in accordance with Saudi law

17. General Provisions: Standard boilerplate clauses, notices, and administrative provisions

What sections are optional to include in a Public Sector Agreement?

1. Intellectual Property Rights: Required when the contract involves creation or use of IP

2. Data Protection: Required when personal or sensitive data processing is involved

3. Security Requirements: Required for contracts involving access to sensitive facilities or information

4. Personnel Requirements: Required when specific staff qualifications or Saudization requirements apply

5. Insurance: Required for high-risk or high-value contracts

6. Bank Guarantees: Required when performance bonds or advance payment guarantees are needed

7. Environmental Compliance: Required for projects with environmental impact

8. Health and Safety: Required for construction or operational contracts

9. Subcontracting: Required when subcontracting is permitted

10. Technology Transfer: Required for contracts involving technology transfer to Saudi entities

What schedules should be included in a Public Sector Agreement?

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

2. Schedule 2 - Pricing and Payment Schedule: Detailed pricing breakdown and payment milestones

3. Schedule 3 - Key Performance Indicators: Detailed performance metrics and measurement criteria

4. Schedule 4 - Implementation Timeline: Detailed project schedule and milestones

5. Schedule 5 - Required Personnel: Key personnel requirements and qualifications

6. Schedule 6 - Technical Standards: Applicable technical standards and specifications

7. Schedule 7 - Forms and Templates: Standard forms for reports, changes, and other submissions

8. Schedule 8 - Government Furnished Items: Items or information to be provided by the government entity

9. Appendix A - Tender Documents: Reference documents from the tender process

10. Appendix B - Contractor's Proposal: Technical and commercial proposals from the contractor

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

Service Agreement

Cost

Free to use
Relevant legal definitions














































Clauses
















































Relevant Industries

Infrastructure & Construction

Information Technology

Healthcare

Defense & Security

Education

Transportation

Energy

Telecommunications

Environmental Services

Professional Services

Manufacturing

Urban Development

Utilities

Public Works

Relevant Teams

Legal

Procurement

Government Relations

Commercial

Operations

Finance

Compliance

Project Management

Business Development

Risk Management

Technical Services

Contract Administration

Relevant Roles

Procurement Director

Government Relations Manager

Legal Counsel

Contract Manager

Public Sector Account Executive

Compliance Officer

Project Director

Bid Manager

Commercial Director

Operations Manager

Chief Financial Officer

Technical Director

Risk Manager

Government Affairs Director

Business Development Manager

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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