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The Construction Project Agreement is a fundamental legal document used in Saudi Arabia to establish a binding contractual relationship between project owners and contractors for construction works. This agreement is essential for any significant construction project in Saudi Arabia, whether in the public or private sector, and must comply with various local regulations including the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. The document typically includes detailed specifications of the construction works, payment structures, timelines, quality standards, and risk allocation between parties. It's particularly important in the Saudi context due to specific local requirements such as Saudization policies, environmental regulations, and Islamic finance principles. The agreement serves as the primary reference document throughout the project lifecycle, from groundbreaking to completion and warranty period.

1. Parties: Identification of the contracting parties including the employer/owner and the contractor, with full legal names and addresses

2. Background: Context of the construction project, including project overview and purpose

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical construction terminology

4. Scope of Works: Detailed description of the construction works to be performed, including specifications and standards

5. Contract Price and Payment Terms: Payment structure, milestones, payment mechanisms, and currency details

6. Project Timeline: Construction schedule, completion dates, and milestone deadlines

7. Contractor Obligations: Detailed responsibilities of the contractor including quality standards, safety requirements, and workforce management

8. Employer Obligations: Responsibilities of the employer including site access, permits, and approvals

9. Materials and Equipment: Specifications for materials, procurement requirements, and equipment standards

10. Quality Control and Inspection: Quality assurance procedures, testing requirements, and inspection protocols

11. Health, Safety and Environment: HSE requirements, compliance with local regulations, and safety protocols

12. Variations and Changes: Procedures for handling changes to scope, pricing, or timeline

13. Force Majeure: Events constituting force majeure and consequent procedures

14. Default and Termination: Events of default, remedies, and termination procedures

15. Dispute Resolution: Dispute resolution mechanisms compliant with Saudi law and Sharia principles

16. Governing Law: Specification of Saudi law as governing law and relevant jurisdictional matters