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The Project Delivery Agreement serves as the primary contractual instrument for managing and executing projects in Saudi Arabia. It is particularly crucial for complex projects requiring detailed scope definition, clear delivery mechanisms, and robust risk management frameworks. This agreement type is designed to comply with Saudi Arabian law, including various Royal Decrees and regulations, while adhering to Sharia principles. The document typically comes into play when organizations need to formalize project delivery arrangements, whether for construction, infrastructure, or development initiatives. It encompasses all essential aspects of project delivery, from initial planning to completion and warranty periods, including specific provisions for local content requirements, government approvals, and cultural considerations unique to the Saudi market. The Project Delivery Agreement is structured to provide comprehensive coverage of technical, commercial, and legal aspects while maintaining flexibility to accommodate project-specific requirements and risk allocation preferences.

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details

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

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Work: Detailed description of the project scope, deliverables, and contractor's obligations

5. Project Timeline: Project schedule, milestones, completion dates, and delivery requirements

6. Contract Price and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and payment conditions

7. Contractor's Obligations: Detailed responsibilities including quality standards, compliance requirements, and performance obligations

8. Client's Obligations: Client's responsibilities including access, approvals, and provision of information

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

10. Quality and Standards: Quality requirements, applicable standards, and inspection procedures

11. Health, Safety and Environment: HSE requirements and compliance with Saudi regulations

12. Warranties and Defects Liability: Warranty terms, defect rectification obligations, and liability period

13. Insurance and Liability: Insurance requirements and allocation of risks and liabilities

14. Force Majeure: Definition and consequences of force majeure events

15. Suspension and Termination: Rights and procedures for contract suspension and termination

16. Dispute Resolution: Dispute resolution procedures compliant with Saudi law

17. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction details

18. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement