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Terminate Building Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Terminate Building Contract document is essential when parties need to formally end their construction relationship in Saudi Arabia, whether by mutual agreement or unilateral action. This document is typically used when projects face significant delays, breaches of contract, force majeure events, or when parties mutually agree to discontinue the works. It must comply with Saudi Arabian law, including Sharia principles, the Government Tenders and Procurement Law, and local construction regulations. The document includes crucial elements such as the termination basis, final account settlements, handover procedures, and ongoing obligations. It provides a structured framework for project closure while protecting both parties' rights and ensuring proper documentation for regulatory compliance and potential dispute resolution.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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












































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Relevant Industries

Construction

Real Estate

Infrastructure

Commercial Development

Residential Development

Industrial Development

Government/Public Works

Energy & Utilities

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Construction

Project Management

Commercial

Finance

Operations

Procurement

Risk & Compliance

Technical Services

Contract Administration

Relevant Roles

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

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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