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Terminate Building Contract
"I need a Terminate Building Contract document for a mutual termination agreement with our contractor Al-Faisal Construction Company, to be effective from March 15, 2025, due to project funding issues; the document must comply with Saudi Arabian law and include detailed provisions for the handover of partially completed works."
1. Parties: Identification of the Employer and Contractor, including their full legal names, registration details, and authorized representatives
2. Background: Brief description of the original building contract, key dates, and project scope
3. Definitions: Key terms used in the termination agreement, including references to original contract definitions
4. Termination Effective Date: Clear statement of when the termination takes effect
5. Grounds for Termination: Specific reasons for termination with reference to relevant contract clauses and applicable laws
6. Current Status of Works: Summary of the completed works and current state of the project
7. Financial Settlement: Details of final payments, including retained amounts, outstanding payments, and any adjustments
8. Handover Requirements: Process for handover of site, materials, documents, and equipment
9. Warranties and Guarantees: Status of existing warranties and guarantees post-termination
10. Release and Waiver: Mutual release of claims subject to the terms of the termination agreement
11. Confidentiality: Ongoing obligations regarding confidential information
12. Governing Law: Confirmation of Saudi law and Sharia principles as governing law
13. Execution: Signature blocks and execution requirements
1. Dispute Resolution: Include if specific dispute resolution mechanisms are needed beyond standard court jurisdiction
2. Subcontractor Arrangements: Include if there are ongoing subcontractor relationships that need to be addressed
3. Insurance Provisions: Include if specific insurance arrangements need to be maintained post-termination
4. Intellectual Property Rights: Include if there are design rights or other IP that needs to be transferred or licensed
5. Employee Matters: Include if there are specific workforce transition arrangements required
6. Defects Liability: Include if there are ongoing responsibilities for defects in completed works
1. Schedule 1 - Works Completion Status: Detailed inventory of completed works, partially completed works, and outstanding works
2. Schedule 2 - Financial Statement: Detailed breakdown of all financial matters including payments made, outstanding amounts, and calculations
3. Schedule 3 - Site Inventory: List of materials, equipment, and temporary works on site
4. Schedule 4 - Required Handover Documentation: List of all technical documents, certificates, and warranties to be handed over
5. Schedule 5 - Outstanding Claims: Details of any outstanding claims or disputes to be settled
6. Appendix A - Original Contract Reference: Key details and relevant clauses from the original building contract
7. Appendix B - Handover Certificates: Forms and certificates required for the handover process
Authors
Construction
Real Estate
Infrastructure
Commercial Development
Residential Development
Industrial Development
Government/Public Works
Energy & Utilities
Healthcare Facilities
Educational Facilities
Legal
Construction
Project Management
Commercial
Finance
Operations
Procurement
Risk & Compliance
Technical Services
Contract Administration
Construction Manager
Project Director
Contract Manager
Legal Counsel
Chief Executive Officer
Project Manager
Quantity Surveyor
Site Engineer
Commercial Director
Finance Director
Operations Manager
Technical Director
Risk Manager
Compliance Officer
Procurement Manager
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