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Construction Payment Contract
"I need a Construction Payment Contract for a large-scale residential development project in Riyadh, with milestone-based payments and a 10% retention clause, incorporating specific requirements for Shariah-compliant bank guarantees."
1. Parties: Identification of the parties entering into the contract, including full legal names, addresses, and registration details
2. Background: Context of the agreement, including project reference and relationship between parties
3. Definitions: Definitions of key terms used throughout the contract
4. Scope of Works: Clear description of the construction works for which payments are being made
5. Contract Price: Total contract value and breakdown of payment components
6. Payment Terms: Detailed payment schedule, milestones, and conditions for payment
7. Payment Procedures: Process for submitting and processing payment applications, including required documentation
8. Payment Security: Requirements for payment bonds, guarantees, or other security measures
9. Variations and Adjustments: Process for handling changes to scope and corresponding payment adjustments
10. Default and Late Payment: Consequences of payment defaults and late payments, including applicable interest
11. Dispute Resolution: Procedures for resolving payment-related disputes in accordance with Saudi law
12. Governing Law: Specification of Saudi law and Shariah principles as governing law
13. Notices: Process for serving notices related to payments
14. Execution: Signature blocks and execution requirements
1. Advance Payment: Terms for advance payments, typically used for large projects requiring significant upfront costs
2. Performance Bonds: Requirements for performance bonds, used when additional security is needed
3. Retention: Terms for retention money, used when withholding part of payment is required
4. Currency and Exchange Rates: Provisions for handling multiple currencies, used in international contracts
5. Government Approvals: Requirements for government permits affecting payment, used for regulated projects
6. Force Majeure: Impact on payment obligations during force majeure events
7. Assignment and Subcontracting: Rules for payment rights assignment, used when subcontractors are involved
8. Insurance Requirements: Insurance obligations affecting payment, used for high-risk projects
1. Schedule 1 - Payment Schedule: Detailed breakdown of payment milestones and amounts
2. Schedule 2 - Rate Sheet: Unit rates and prices for various components of work
3. Schedule 3 - Form of Payment Application: Template for submitting payment applications
4. Schedule 4 - Form of Payment Certificate: Template for payment certificates to be issued
5. Schedule 5 - Project Timeline: Project schedule aligned with payment milestones
6. Schedule 6 - Scope of Works Details: Detailed technical specifications linked to payment items
7. Appendix A - Required Documentation: List of documents required for payment processing
8. Appendix B - Bank Details: Banking information for payment transfers
9. Appendix C - Performance Security Forms: Templates for various security instruments
Authors
Construction
Real Estate Development
Infrastructure Development
Civil Engineering
Commercial Property
Residential Property
Industrial Construction
Government Infrastructure
Energy Construction
Transportation Infrastructure
Legal
Finance
Commercial
Operations
Project Management
Construction
Procurement
Risk Management
Contract Administration
Claims Management
Project Manager
Construction Manager
Contract Administrator
Commercial Director
Finance Manager
Quantity Surveyor
Construction Director
Legal Counsel
Chief Financial Officer
Operations Director
Project Engineer
Site Manager
Procurement Manager
Claims Manager
Risk Manager
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