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Turnkey Contract Agreement

Turnkey Contract Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Turnkey Contract Agreement

"I need a Turnkey Contract Agreement under Saudi Arabian law for a solar power plant project with a value of $200M, where my company will be the employer and we require completion by June 2025, with specific provisions for performance testing and renewable energy certification."

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Document background
The Turnkey Contract Agreement is a specialized legal instrument used in Saudi Arabia for projects where a single contractor assumes complete responsibility for delivering a fully operational facility or system. This document is particularly crucial for complex industrial, infrastructure, or construction projects where the employer seeks to minimize project coordination risks by delegating full responsibility to one party. The agreement must comply with Saudi Arabian law, including Sharia principles and relevant regulatory requirements such as the Government Tenders and Procurement Law. It comprehensively covers all aspects of project delivery including design, engineering, procurement, construction, testing, and commissioning. The document is structured to address risk allocation, payment mechanisms, performance guarantees, and dispute resolution within the Saudi legal framework, making it suitable for both public and private sector projects.
Suggested Sections

1. Parties: Identification and details of the contracting parties including their legal status and authority to contract

2. Background: Context of the agreement and project overview

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

4. Scope of Work: Comprehensive description of the entire project scope including design, procurement, construction, testing, and commissioning

5. Contract Price and Payment Terms: Total contract value, payment schedule, milestones, and payment conditions

6. Project Timeline: Project schedule, key milestones, completion dates, and extension mechanisms

7. Contractor's Obligations: Detailed responsibilities including design, procurement, construction, testing, and handover

8. Employer's Obligations: Client responsibilities including site access, permits, and approvals

9. Quality and Standards: Required quality standards, inspections, and compliance with Saudi regulations

10. Testing and Commissioning: Requirements for testing, commissioning, and acceptance procedures

11. Warranties and Defects Liability: Warranty terms, defects liability period, and remedial obligations

12. Changes and Variations: Procedures for handling changes to scope, price, or schedule

13. Risk Allocation and Insurance: Distribution of risks and required insurance coverage

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

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for dispute resolution including Saudi law requirements

17. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction provisions

Optional Sections

1. Foreign Investment Provisions: Required when foreign contractors are involved, addressing licensing and local partner requirements

2. Financing Arrangements: Required when specific project financing or payment security arrangements are needed

3. Government Approvals: Detailed section on government approvals when project requires specific regulatory clearances

4. Environmental Compliance: Detailed environmental requirements for projects with significant environmental impact

5. Technology Transfer: Required when the project involves transfer of technology or knowledge to local entities

6. Saudization Requirements: Detailed requirements for local workforce participation when applicable

7. Islamic Finance Compliance: Required when project financing must comply with Islamic finance principles

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and performance specifications

2. Project Schedule: Detailed timeline with milestones and critical path activities

3. Price Schedule: Breakdown of contract price and payment milestones

4. Site Information: Details of project site, access, and conditions

5. Form of Guarantees: Templates for performance bond, advance payment guarantee, and warranty bond

6. Testing and Commissioning Procedures: Detailed procedures for testing and acceptance

7. Health, Safety and Environmental Requirements: Detailed HSE requirements and procedures

8. Quality Assurance Plan: Detailed quality management requirements and procedures

9. List of Key Personnel: Key personnel requirements and qualifications

10. Permits and Approvals: List of required permits and responsible parties

11. Form of Completion Certificates: Templates for various completion certificates

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

alex.den.21@genieai.co
Relevant legal definitions








































































Clauses
















































Relevant Industries

Construction

Infrastructure

Oil & Gas

Power Generation

Industrial Manufacturing

Petrochemicals

Mining

Water Treatment

Healthcare Facilities

Transportation

Renewable Energy

Telecommunications

Relevant Teams

Legal

Commercial

Project Management

Procurement

Engineering

Construction

Finance

Risk Management

Compliance

Operations

Business Development

Technical Services

Contract Administration

Relevant Roles

Project Director

Contract Manager

Legal Counsel

Chief Executive Officer

Commercial Manager

Project Manager

Construction Manager

Procurement Manager

Technical Director

Risk Manager

Finance Director

Operations Director

Engineering Manager

Compliance Officer

Business Development Director

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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