General Construction Agreement

General Construction Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

"I need a General Construction Agreement for a 20-story commercial tower project in Riyadh, with provisions for phased completion and specific requirements for sustainable building materials, scheduled to commence in March 2025."

Document background

The General Construction Agreement is a fundamental document used in Saudi Arabia's construction industry to establish legally binding relationships between project owners and contractors. It is essential for any construction project, whether commercial, residential, or infrastructure-related, and must comply with Saudi Arabian law, including Sharia principles and various regulatory requirements such as the Saudi Building Code and Labor Law. This agreement type is particularly important given Saudi Arabia's extensive construction activity under Vision 2030, requiring careful attention to local content requirements, environmental regulations, and technical standards. The document covers all aspects of construction project delivery, from initial mobilization to final completion and defects liability period, and is structured to protect the interests of all parties while ensuring project success.

Suggested Sections

1. Parties: Identification and details of the contracting parties (Owner/Employer and Contractor)

2. Background: Context of the agreement and brief description of the project

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

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

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

6. Project Timeline: Commencement date, completion date, and key milestones

7. Contractor's Obligations: Primary responsibilities and duties of the contractor

8. Employer's Obligations: Primary responsibilities and duties of the employer

9. Quality and Standards: Required quality standards, materials specifications, and workmanship requirements

10. Site Access and Conditions: Terms regarding access to and control of the construction site

11. Variations and Changes: Procedures for handling changes to scope, specifications, or contract terms

12. Health and Safety: Safety requirements and responsibilities

13. Insurance and Securities: Required insurance coverage and performance securities

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

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

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes between parties

18. Governing Law: Specification of Saudi law and Sharia principles as governing law

Optional Sections

1. Subcontracting: Terms for engaging and managing subcontractors - include when subcontracting is anticipated

2. Intellectual Property Rights: Protection of designs and technical information - include for projects involving unique designs or technology

3. Environmental Compliance: Environmental protection measures - include for projects with significant environmental impact

4. Local Content Requirements: Saudi workforce and local content obligations - include for large-scale projects

5. Advance Payment: Terms for advance payment and its security - include when advance payment is required

6. Equipment and Materials Supply: Specific terms for equipment/materials procurement - include for projects where owner supplies materials

7. Testing and Commissioning: Detailed testing requirements - include for complex technical installations

8. Confidentiality: Confidentiality obligations - include for projects involving sensitive information

9. Step-in Rights: Owner's right to take over work - include for critical infrastructure projects

Suggested Schedules

1. Schedule 1 - Project Specifications: Detailed technical specifications and drawings

2. Schedule 2 - Bill of Quantities: Itemized list of works and their quantities

3. Schedule 3 - Payment Schedule: Detailed payment milestones and amounts

4. Schedule 4 - Project Timeline: Detailed program of works and milestone dates

5. Schedule 5 - Key Personnel: List of key personnel from both parties

6. Schedule 6 - Forms of Securities: Templates for performance bond and other securities

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage limits

8. Schedule 8 - Site Information: Site details, surveys, and existing conditions

9. Schedule 9 - Quality Assurance Plan: Detailed quality control procedures and requirements

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

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

Commercial Construction

Residential Construction

Infrastructure Development

Industrial Construction

Energy and Utilities

Healthcare Facilities

Educational Facilities

Hospitality and Tourism

Transportation

Public Works

Real Estate Development

Manufacturing Facilities

Religious Buildings

Sports and Recreation Facilities

Relevant Teams

Legal

Construction

Commercial

Procurement

Operations

Finance

Risk Management

Technical

Project Management

Quality Assurance

Health and Safety

Design

Contract Administration

Claims and Disputes

Compliance

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Site Engineer

Quantity Surveyor

Commercial Manager

Procurement Manager

Risk Manager

Technical Director

Chief Executive Officer

Operations Director

Finance Director

Compliance Officer

Health and Safety Manager

Quality Assurance Manager

Design Manager

Cost Controller

Claims Manager

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