The Supply Of Services Agreement is essential for businesses operating in Saudi Arabia that engage external service providers or offer services to clients. This document is particularly crucial given the kingdom's unique legal framework, which combines modern commercial law with Shariah principles. It should be used whenever a formal arrangement for service provision is required, whether for one-time projects or ongoing services. The agreement covers critical elements including detailed service descriptions, performance metrics, payment structures compliant with Saudi tax regulations, risk allocation, and dispute resolution mechanisms aligned with the Saudi judicial system. It's especially relevant given Saudi Arabia's Vision 2030 initiatives, which have increased focus on service sector development and regulatory compliance.
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1. Parties: Identification of the service provider and recipient, including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement, including Arabic translations where necessary
4. Scope of Services: Detailed description of services to be provided, including service levels and performance standards
5. Term and Commencement: Duration of the agreement and conditions for effectiveness
6. Payment Terms: Fees, payment schedule, invoicing requirements, and VAT considerations
7. Service Provider Obligations: Key responsibilities and warranties of the service provider
8. Client Obligations: Responsibilities and commitments of the client
9. Compliance with Laws: Obligation to comply with Saudi laws, including Shariah principles
10. Confidentiality: Protection of confidential information and trade secrets
11. Intellectual Property: Ownership and usage rights of IP created during service provision
12. Liability and Indemnification: Limitation of liability and indemnification obligations
13. Force Majeure: Events excusing performance, including reference to Saudi force majeure principles
14. Termination: Grounds for termination and consequences
15. Dispute Resolution: Process for resolving disputes under Saudi law
16. Governing Law: Confirmation of Saudi law and Shariah principles as governing law
17. Notices: Communication procedures between parties
18. General Provisions: Standard boilerplate clauses adapted for Saudi law
1. Insurance: Required when services involve significant risks or regulatory requirements for insurance
2. Data Protection: Required when services involve processing personal data
3. Change Control: Recommended for complex services where scope changes are likely
4. Anti-Corruption: Required for high-value contracts or government-related services
5. Business Continuity: Required for critical services or long-term arrangements
6. Key Personnel: Recommended when specific individuals are crucial to service delivery
7. Security Requirements: Required when services involve access to sensitive systems or facilities
8. Islamic Finance Compliance: Required when payment structure needs to comply with Islamic finance principles
9. Saudization Requirements: Required when services involve employment or training obligations
1. Service Description Schedule: Detailed technical specifications and scope of services
2. Service Levels Schedule: Performance metrics, KPIs, and measurement methodology
3. Pricing Schedule: Detailed breakdown of fees, charges, and payment terms
4. Key Personnel Schedule: List of key staff members and their roles
5. Required Insurances Schedule: Types and levels of insurance coverage required
6. Security Requirements Schedule: Detailed security protocols and requirements
7. Form of Change Order: Template for documenting changes to services
8. Approved Subcontractors: List of pre-approved subcontractors if applicable
9. Business Continuity Plan: Detailed procedures for service continuity
10. Compliance Requirements: Specific regulatory and Shariah compliance requirements
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Professional Services
Construction
Healthcare
Education
Telecommunications
Facilities Management
Engineering
Management Consulting
Financial Services
Oil & Gas
Manufacturing
Logistics
Real Estate
Hospitality
Relevant Teams
Legal
Procurement
Commercial
Operations
Finance
Risk & Compliance
Business Development
Service Delivery
Technical Services
Project Management
Account Management
Relevant Roles
Legal Counsel
Procurement Manager
Contract Manager
Commercial Director
Operations Manager
Project Manager
Chief Financial Officer
Risk Manager
Compliance Officer
Business Development Manager
Service Delivery Manager
Account Manager
Chief Operating Officer
General Manager
Technical Director
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