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New Construction Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

New Construction Agreement

"I need a New Construction Agreement for a 50-story commercial tower project in Riyadh, Saudi Arabia, with a planned start date of March 2025, involving international contractors and including provisions for phased completion and advanced sustainable building technologies."

Document background
The New Construction Agreement serves as the primary contractual document for construction projects in Saudi Arabia, establishing the legal and operational framework between project owners and contractors. It is specifically designed for use in new construction projects where a complete scope of works needs to be executed from ground up. The agreement incorporates essential elements of Saudi law, including Sharia principles, building regulations, labor laws, and environmental requirements. It provides comprehensive coverage of project execution parameters, from technical specifications and payment terms to risk allocation and dispute resolution mechanisms. This document is particularly crucial in the Saudi Arabian context where specific local content requirements, government approvals, and cultural considerations must be addressed alongside standard construction terms.
Suggested Sections

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

2. Background: Context of the agreement including project overview and parties' intentions

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

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

5. Contract Price and Payment Terms: Amount payable, payment schedule, and mechanisms for payment

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

7. Contractor Obligations: Detailed responsibilities and duties of the contractor

8. Employer Obligations: Detailed responsibilities and duties of the employer

9. Materials and Workmanship: Quality standards, specifications, and approval requirements

10. Health, Safety and Environmental Requirements: Safety protocols and environmental compliance requirements

11. Variations: Procedures for handling changes to scope or specifications

12. Testing and Completion: Inspection procedures, acceptance criteria, and completion certificates

13. Defects Liability: Warranty period and remediation of defects

14. Insurance and Bonds: Required insurance coverage and performance bonds

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 including applicable Saudi law provisions

18. Governing Law: Confirmation of Saudi law as governing law and relevant jurisdictional details

19. Notices: Communication procedures and contact details

20. General Provisions: Miscellaneous legal provisions including assignment, waiver, and severability

Optional Sections

1. Site Access and Conditions: Used when specific site access arrangements or unusual site conditions need to be addressed

2. Subcontracting: Include when subcontracting will be permitted, specifying approval requirements

3. Equipment Supply: Required when significant equipment supply is part of the contract scope

4. Intellectual Property Rights: Include when design services or proprietary technologies are involved

5. Local Content Requirements: Used when specific Saudi local content requirements apply

6. Advance Payment: Include when advance payments are part of the payment structure

7. Performance Incentives: Used when bonus/penalty schemes are incorporated

8. Government Approvals: Include when specific government permits or approvals are required

9. Temporary Works: Required when significant temporary works are part of the project

10. Security Requirements: Include for projects with specific security considerations

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Project Schedule: Detailed timeline including milestones and critical path

3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and bill of quantities

4. Schedule 4 - Payment Schedule: Payment milestones and procedures

5. Schedule 5 - Site Information: Site plans, geological data, and existing conditions

6. Schedule 6 - Key Personnel: List of key personnel from both parties with roles and responsibilities

7. Schedule 7 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

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

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 Licenses: List of required regulatory approvals and permits

12. Appendix B - Form of Progress Reports: Templates for progress reporting

13. Appendix C - Testing and Commissioning Procedures: Detailed testing and acceptance procedures

Authors

Alex Denne

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

Relevant legal definitions

























































Clauses


















































Relevant Industries

Real Estate

Infrastructure

Industrial

Commercial

Residential

Healthcare

Education

Hospitality

Retail

Manufacturing

Energy

Transportation

Public Sector

Religious Facilities

Sports & Entertainment

Relevant Teams

Legal

Construction

Commercial

Finance

Procurement

Operations

Risk & Compliance

Health & Safety

Technical

Design

Quality Assurance

Project Management

Business Development

Contract Administration

Relevant Roles

Project Director

Construction Manager

Legal Counsel

Contract Manager

Chief Executive Officer

Chief Financial Officer

Project Manager

Site Engineer

Quantity Surveyor

Procurement Manager

Risk Manager

HSE Manager

Commercial Director

Technical Director

Operations Manager

Finance Manager

Compliance Officer

Quality Assurance Manager

Design Manager

Business Development Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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