Construction Contract Agreement Form

Construction Contract Agreement Form Template for Saudi Arabia

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Key Requirements PROMPT example:

"I need a Construction Contract Agreement Form for a multi-phase shopping mall development in Riyadh, with construction starting March 2025, including provisions for phased completion and retail tenant fit-out works, compliant with Saudi municipality requirements."

Document background

The Construction Contract Agreement Form serves as a fundamental legal document for construction projects in Saudi Arabia, establishing the rights, obligations, and responsibilities of all parties involved in construction works. This document is essential when entering into any significant construction project in Saudi Arabia, whether for government, commercial, or private developments. It incorporates mandatory requirements from Saudi law, including compliance with the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. The agreement covers crucial aspects such as project scope, payment terms, completion timelines, quality standards, and dispute resolution mechanisms, while ensuring alignment with local regulatory requirements and industry practices. It is particularly designed to address the unique aspects of Saudi Arabian construction projects, including local content requirements under Vision 2030, municipality regulations, and environmental compliance standards.

Suggested Sections

1. Parties: Identification and details of the contracting parties, including proper legal names, registration numbers, and authorized representatives

2. Background: Context of the agreement, project overview, and basis for the contractual relationship

3. Definitions and Interpretation: Comprehensive definitions of terms used in the contract and rules for contract interpretation

4. Scope of Works: Detailed description of the construction works to be performed, including general obligations

5. Contract Price and Payment Terms: Agreed price, payment schedule, variation mechanisms, and payment procedures compliant with Saudi law

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

7. Contractor Obligations: Detailed responsibilities including workforce, materials, equipment, and compliance with local regulations

8. Employer Obligations: Client responsibilities including site access, permits, approvals, and information provision

9. Quality and Standards: Required quality standards, compliance with Saudi Building Code, and inspection procedures

10. Health, Safety and Environment: HSE requirements, compliance with Civil Defense regulations and environmental laws

11. Variations and Changes: Procedures for handling changes to scope, price adjustments, and variation orders

12. Testing and Completion: Inspection procedures, testing requirements, and completion certificates

13. Defects Liability: Defects notification period, remediation procedures, and warranties

14. Insurance and Indemnities: Required insurance coverage and indemnification obligations

15. Force Majeure: Force majeure events and consequences, including pandemic-related provisions

16. Termination: Grounds for termination, procedures, and consequences

17. Dispute Resolution: Dispute resolution procedures, including Saudi law requirements for arbitration

18. Governing Law: Confirmation of Saudi law as governing law and Sharia compliance provisions

Optional Sections

1. Design Responsibilities: Include when contractor has design obligations in design-build contracts

2. Value Engineering: Include when parties agree to incorporate value engineering provisions

3. Phased Completion: Include for projects with multiple completion phases or sectional completion

4. Advance Payment: Include when advance payment is required, with bank guarantee provisions

5. Performance Security: Include when performance bond or security is required

6. Intellectual Property: Include when design or innovative construction methods are involved

7. Local Content Requirements: Include for compliance with Saudi Vision 2030 localization requirements

8. Subcontracting: Include detailed subcontracting provisions for larger projects

9. Equipment and Materials Supply: Include when specific procurement requirements exist

10. Site Conditions: Include detailed site-related provisions for complex ground conditions

Suggested Schedules

1. Schedule 1 - Works Specification: Detailed technical specifications and scope of works

2. Schedule 2 - Site Plans and Drawings: Construction drawings, site layout, and technical plans

3. Schedule 3 - Project Program: Detailed construction program with milestones and timelines

4. Schedule 4 - Payment Schedule: Breakdown of payments, milestones, and payment procedures

5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities

6. Schedule 6 - Forms of Certificates: Templates for various certificates including completion certificates

7. Schedule 7 - Performance Security Forms: Forms for bank guarantees and performance bonds

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage

9. Schedule 9 - Quality Assurance Plan: Quality control procedures and standards

10. Schedule 10 - HSE Requirements: Detailed health, safety, and environmental requirements

11. Appendix A - Required Permits and Approvals: List of required governmental and regulatory approvals

12. Appendix B - Material Specifications: Detailed specifications for construction materials

13. Appendix C - Testing and Commissioning Procedures: Procedures for testing and commissioning works

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Infrastructure Development

Real Estate

Oil & Gas

Industrial Development

Healthcare Facilities

Educational Facilities

Hospitality

Retail Development

Transportation

Energy

Mining

Religious Facilities

Sports & Entertainment Facilities

Relevant Teams

Legal

Construction

Commercial

Procurement

Project Management

Engineering

Finance

Risk & Compliance

Operations

Health Safety & Environment

Quality Assurance

Design

Business Development

Contract Administration

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Site Engineer

Quantity Surveyor

Commercial Manager

Procurement Manager

Risk Manager

Technical Director

Operations Director

Chief Executive Officer

Finance Director

Compliance Officer

HSE Manager

Quality Assurance Manager

Design Manager

Claims Manager

Business Development Manager

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