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The Builder Agreement is a fundamental contract used in the Saudi Arabian construction industry to establish legally binding relationships between project owners and construction contractors. This document is essential when engaging a builder for any construction project in Saudi Arabia, whether for commercial, residential, or industrial purposes. The agreement must comply with Saudi building codes, labor laws, and Sharia principles while incorporating international construction best practices. It typically includes detailed specifications for the construction project, payment mechanisms, quality standards, and dispute resolution procedures. The Builder Agreement serves as the primary reference document throughout the construction process, protecting both parties' interests while ensuring project delivery meets local regulatory requirements and industry standards.

1. Parties: Identification of the employer and builder, including full legal names, registration numbers, and authorized representatives

2. Background: Context of the construction project and the purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Scope of Works: Detailed description of construction works to be performed

5. Contract Price and Payment Terms: Agreed price, payment schedule, and payment mechanisms

6. Project Timeline: Construction schedule, milestones, and completion dates

7. Builder's Obligations: Comprehensive list of builder's responsibilities and duties

8. Employer's Obligations: Comprehensive list of employer's responsibilities and duties

9. Materials and Workmanship: Quality standards, material specifications, and workmanship requirements

10. Health and Safety: Safety requirements and compliance with Saudi safety regulations

11. Insurance and Liability: Required insurance coverage and allocation of risks

12. Warranties and Defects Liability: Warranty terms and defect rectification obligations

13. Variations and Changes: Procedures for handling changes to scope or specifications

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes under Saudi law

17. Governing Law: Confirmation of Saudi law as governing law

18. Notices: Communication procedures and contact details

19. General Provisions: Standard boilerplate clauses including severability, entire agreement, etc.