The Short Form Contract Between Owner And Contractor is specifically designed for construction projects in Saudi Arabia where a simplified contractual framework is appropriate, typically for small to medium-sized construction works or projects with clearly defined scopes. This document serves as an alternative to more complex standard form contracts while ensuring compliance with Saudi Arabian law and Sharia principles. It incorporates essential elements required for construction contracts in the jurisdiction, including provisions for payment mechanisms, quality standards, and dispute resolution. The contract is particularly useful for projects where the scope is well-defined, the risk profile is relatively straightforward, and the parties prefer a more streamlined contractual approach while maintaining adequate protection of their interests.
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1. Parties: Identification of the Owner and Contractor with full legal names, addresses, and registration details
2. Background: Brief context of the construction project and the parties' intention to enter into this agreement
3. Definitions: Key terms used throughout the contract, including Project, Works, Site, Completion Date, and Contract Price
4. Scope of Works: Clear description of the construction works to be performed by the Contractor
5. Contract Price and Payment: Amount payable, payment schedule, and payment terms including VAT considerations
6. Time for Completion: Project timeline, completion date, and consequences of delays
7. Contractor's Obligations: Key responsibilities including workmanship, materials, compliance with laws, and safety requirements
8. Owner's Obligations: Key responsibilities including site access, permits, and information provision
9. Variations: Process for handling changes to the scope of works
10. Defects Liability: Contractor's responsibility for defects and rectification period
11. Insurance and Liability: Required insurance coverage and allocation of risks
12. Termination: Grounds and process for contract termination by either party
13. Governing Law and Dispute Resolution: Confirmation of Saudi law application and dispute resolution mechanism
14. Notices: Process and addresses for formal communications between parties
1. Performance Security: Requirements for performance bonds or guarantees, used for larger value contracts
2. Interim Milestones: Specific project milestones and associated payments, used for phased projects
3. Liquidated Damages: Pre-agreed damages for delay or performance failures, used when specific losses can be predicted
4. Force Majeure: Provisions for unforeseen circumstances, recommended for longer-term projects
5. Subcontracting: Rules for appointing subcontractors, needed if subcontracting is anticipated
6. Quality Control: Specific quality assurance requirements, used for complex technical projects
7. Site Conditions: Provisions regarding site conditions and underground utilities, important for greenfield projects
8. Materials and Equipment: Specific requirements for materials and equipment, used when owner wants control over specifications
1. Schedule 1 - Scope of Works: Detailed description of works including drawings and specifications
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract price and bill of quantities
3. Schedule 3 - Project Timeline: Detailed project schedule with key dates and milestones
4. Schedule 4 - Key Personnel: List of key personnel from both parties with roles and responsibilities
5. Schedule 5 - Required Insurance: Details of required insurance coverage and minimum amounts
6. Schedule 6 - Technical Specifications: Specific technical requirements and standards to be followed
7. Schedule 7 - Forms: Standard forms for variations, completion certificates, and payment applications
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Development
Industrial Development
Hospitality
Retail
Healthcare
Education
Relevant Teams
Legal
Commercial
Construction
Operations
Procurement
Project Management
Business Development
Contract Administration
Risk & Compliance
Technical Services
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Commercial Manager
Site Manager
Development Director
Procurement Manager
Technical Director
Chief Executive Officer
Operations Manager
Construction Director
Property Developer
Facilities Manager
Risk Manager
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