The Contract Agreement For Construction Work is a fundamental legal document used in Saudi Arabia to establish and govern the relationship between construction project owners and contractors. This agreement is essential for any construction project in Saudi Arabia, whether commercial, residential, or industrial, and must comply with both Shariah law principles and Saudi regulations, including the Government Tenders and Procurement Law, Saudi Building Code, and Labor Law requirements. The document is typically used when initiating major construction projects and includes detailed provisions for project execution, payment terms, quality standards, and risk allocation. It addresses specific Saudi Arabian requirements such as local content rules, government approvals, and Islamic financing principles. The agreement serves as the primary reference document throughout the construction phase and includes comprehensive schedules and appendices detailing technical specifications, timelines, and compliance requirements.
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Key Requirements PROMPT example:
Contract Agreement For Construction Work
"I need a Contract Agreement For Construction Work under Saudi law for a 50-story commercial tower project in Riyadh, with a value of SAR 500 million, where I'm the developer working with multiple international contractors, with construction scheduled to begin in March 2025."
1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement and brief description of the construction project
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Scope of Work: Detailed description of construction works to be performed, including specifications and standards
5. Contract Price and Payment Terms: Price, payment schedule, and payment mechanisms compliant with Shariah principles
6. Project Timeline: Commencement date, completion date, milestones, and provisions for extensions
7. Contractor Obligations: Key responsibilities including labor, materials, equipment, permits, and compliance requirements
8. Employer Obligations: Client responsibilities including site access, approvals, and information provision
9. Quality and Standards: Quality requirements, applicable standards, and inspection procedures
10. Health, Safety and Environment: HSE requirements and compliance with Saudi regulations
11. Variations: Procedures for changes to scope, pricing, or timeline
12. Warranties and Defects: Warranty periods, defect notification, and remediation procedures
13. Insurance and Security: Required insurance coverage and performance security requirements
14. Force Majeure: Definition and consequences of force majeure events
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Dispute resolution procedures compliant with Saudi law
17. Governing Law: Confirmation of Saudi law and Shariah principles as governing law
1. Government Approvals: Required when project needs specific government permits or approvals
2. Specialized Equipment: For projects involving installation or use of specialized equipment
3. Intellectual Property: When design rights or technology transfers are involved
4. Environmental Impact: For projects requiring detailed environmental management plans
5. Local Content Requirements: When Saudi government local content requirements apply
6. Financing Provisions: For projects with specific financing arrangements
7. Subcontracting: When subcontracting is anticipated or restricted
8. Testing and Commissioning: For projects requiring specific testing procedures
9. Training and Knowledge Transfer: When operator training or technology transfer is required
1. Schedule 1 - Scope of Work: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed program of works and milestone dates
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 - Key Personnel: List of key personnel and their qualifications
6. Schedule 6 - Required Permits: List of required permits and responsibilities
7. Schedule 7 - Technical Standards: Applicable technical standards and specifications
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Schedule 9 - Forms: Standard forms for variations, completion certificates, etc.
10. Schedule 10 - Insurance Requirements: Detailed insurance requirements and coverage limits
11. Appendix A - Site Plan: Drawings and details of the construction site
12. Appendix B - Quality Assurance Plan: Quality control procedures and requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Oil & Gas
Industrial
Commercial Development
Residential Development
Healthcare
Education
Hospitality
Retail
Transportation
Energy
Manufacturing
Public Works
Relevant Teams
Legal
Procurement
Operations
Project Management
Finance
Commercial
Technical
Health Safety Environment
Quality Control
Risk Management
Compliance
Engineering
Construction Management
Contract Administration
Relevant Roles
Project Director
Construction Manager
Contract Manager
Legal Counsel
Chief Executive Officer
Chief Financial Officer
Project Engineer
Site Supervisor
Procurement Manager
Quality Control Manager
HSE Manager
Commercial Director
Technical Director
Operations Manager
Risk Manager
Compliance Officer
Cost Controller
Planning Manager
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