The Simple Construction Contract is designed for use in Saudi Arabia where construction activities must comply with both civil law requirements and Shariah principles. This document is particularly suitable for straightforward construction projects where sophisticated contract mechanisms like detailed variations procedures or complex payment structures are not required. It provides a balanced framework for both employers and contractors, covering essential elements such as scope of works, payment terms, timeline, and party obligations while remaining compliant with Saudi law. The contract is typically used for projects such as residential buildings, simple commercial structures, or basic infrastructure works where the scope is well-defined and the risk profile is relatively straightforward. It incorporates key provisions required under Saudi construction regulations and building codes while maintaining accessibility for users who may not be construction law specialists.
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1. Parties: Identification of the Employer and Contractor, including full legal names, commercial registration numbers, and authorized representatives
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 technical construction terminology
4. Scope of Works: Detailed description of the construction works to be performed by the Contractor
5. Contract Price and Payment Terms: Amount payable, payment schedule, and payment conditions
6. Duration and Timeline: Project commencement date, completion date, and key milestones
7. Contractor's Obligations: Key responsibilities including quality standards, compliance with laws, and safety requirements
8. Employer's Obligations: Key responsibilities including site access, permits, and approvals
9. Materials and Workmanship: Standards for materials, testing requirements, and quality control
10. Variations: Process for handling changes to the scope of works
11. Defects Liability: Contractor's obligations regarding defects and the defects liability period
12. Insurance and Liability: Required insurance coverage and allocation of risks
13. Force Majeure: Events beyond parties' control and their consequences
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration
16. Governing Law: Confirmation of Saudi law as governing law and reference to Shariah principles
1. Performance Security: Requirements for performance bonds or guarantees, used for larger value contracts
2. Advance Payment: Terms for advance payment and related guarantees, if advance payment is required
3. Subcontracting: Rules and conditions for subcontracting, if subcontractors will be used
4. Site Conditions: Specific provisions regarding site conditions and underground works, for complex sites
5. Testing and Commissioning: Detailed testing requirements, for projects with mechanical/electrical components
6. Intellectual Property: IP rights provisions, for projects involving design elements
7. Environmental Compliance: Special environmental obligations, for environmentally sensitive projects
8. Local Content Requirements: Saudi local content requirements, for projects subject to Saudi Aramco or government requirements
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed program of works with milestones
3. Schedule 3 - Payment Schedule: Breakdown of payments, including milestone payments
4. Schedule 4 - Site Details: Site plan, access points, and any site-specific requirements
5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities
6. Schedule 6 - Required Insurances: Details of required insurance policies and coverage amounts
7. Schedule 7 - Forms of Certificates: Templates for completion certificates and payment certificates
8. Schedule 8 - Health and Safety Requirements: Specific health and safety requirements and procedures
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Industrial
Commercial Development
Residential Development
Healthcare
Education
Hospitality
Retail
Manufacturing
Relevant Teams
Legal
Commercial
Operations
Procurement
Construction
Project Management
Finance
Risk & Compliance
Technical
Business Development
Relevant Roles
Construction Manager
Project Manager
Contract Manager
Legal Counsel
Commercial Manager
Procurement Manager
Site Engineer
Quantity Surveyor
Chief Executive Officer
Operations Director
Finance Director
Technical Director
Business Development Manager
Risk Manager
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