The Sale Agreement And Construction Agreement is utilized when a party wishes to both purchase property or materials and engage a contractor for construction works in Saudi Arabia. This combined agreement streamlines the transaction by incorporating both elements into a single comprehensive document, ensuring consistency and reducing potential conflicts between separate agreements. It is particularly relevant for development projects where the purchase of land or materials is intrinsically linked to the construction phase. The document must comply with Saudi Arabian law, including the Commercial Courts Law, Civil Transactions Law, and Saudi Building Code, while adhering to Sharia principles. It includes detailed provisions for property transfer, construction specifications, payment terms, quality standards, testing requirements, and dispute resolution mechanisms. The agreement is structured to protect both parties' interests while ensuring smooth project execution in accordance with Saudi Arabian regulatory requirements.
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1. Parties: Identifies and defines all parties to the agreement, including their legal status, registration details, and addresses
2. Background: Sets out the context of the agreement, including the project overview and parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Sale Terms: Details the terms of the sale component, including property/materials description, pricing, and payment terms
5. Construction Scope: Detailed description of construction works to be performed
6. Project Timeline: Construction schedule, milestones, and completion dates
7. Price and Payment: Comprehensive payment terms, including payment schedule, method, and currency
8. Contractor Obligations: Details the responsibilities and obligations of the contractor
9. Client Obligations: Outlines the responsibilities and obligations of the client
10. Quality Standards: Specifies construction standards, materials quality, and workmanship requirements
11. Variations: Procedures for handling changes to scope or specifications
12. Testing and Commissioning: Requirements for testing and commissioning of completed works
13. Defects Liability: Terms regarding defects liability period and remediation process
14. Insurance and Indemnities: Insurance requirements and indemnification provisions
15. Force Majeure: Provisions for handling unforeseen circumstances and their impact
16. Termination: Grounds and procedures for contract termination
17. Dispute Resolution: Procedures for resolving disputes, including applicable law and jurisdiction
18. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Environmental Compliance: Required when project has significant environmental impact or requires specific environmental permits
2. Security: Include when performance bonds or other security measures are required
3. Government Approvals: Necessary when project requires specific government permits or approvals
4. Subcontracting: Include when subcontractors will be involved in the project
5. Technology Transfer: Required when project involves transfer of technical knowledge or intellectual property
6. Local Content Requirements: Include when project must comply with Saudi Arabian local content requirements
7. Site Access and Security: Important for projects where site security is a significant concern
8. Utilities and Services: Required when arrangement for utilities during construction needs specific attention
1. Schedule 1 - Property Details: Detailed description of the property or site, including legal description and plans
2. Schedule 2 - Construction Specifications: Detailed technical specifications for the construction works
3. Schedule 3 - Bill of Quantities: Itemized list of materials, quantities, and prices
4. Schedule 4 - Construction Program: Detailed project timeline with milestones and critical paths
5. Schedule 5 - Payment Schedule: Detailed breakdown of payment terms, installments, and milestone payments
6. Schedule 6 - Required Insurances: List of required insurance policies and coverage amounts
7. Schedule 7 - Forms of Certificates: Templates for various certificates including completion certificates
8. Schedule 8 - Key Personnel: List of key personnel from both parties involved in the project
9. Appendix A - Drawings: Technical drawings and designs for the construction
10. Appendix B - Permits and Licenses: Copies of relevant permits and licenses
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Infrastructure Development
Commercial Property
Industrial Development
Residential Development
Manufacturing
Energy & Utilities
Healthcare
Education
Retail
Hospitality
Relevant Teams
Legal
Construction
Project Management
Commercial
Finance
Procurement
Operations
Technical
Risk Management
Property Development
Compliance
Engineering
Relevant Roles
Chief Executive Officer
Managing Director
Construction Manager
Project Director
Legal Counsel
Contract Manager
Property Developer
Development Director
Procurement Manager
Commercial Director
Finance Director
Risk Manager
Operations Manager
Technical Director
Site Manager
Quantity Surveyor
Architect
Chief Engineer
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