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Development Management Agreement for Saudi Arabia

Development Management Agreement Template for Saudi Arabia

A Development Management Agreement under Saudi Arabian law is a comprehensive contractual arrangement that establishes the relationship between a property owner/developer and a development manager for overseeing and managing real estate development projects. The agreement details the scope of services, responsibilities, compensation structure, and compliance requirements specific to Saudi Arabian regulations, including adherence to Shariah law principles. It encompasses project planning, execution oversight, budget management, regulatory compliance, and quality control, while ensuring alignment with local building codes, environmental regulations, and municipal requirements.

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What is a Development Management Agreement?

The Development Management Agreement is essential for large-scale development projects in Saudi Arabia where professional project oversight is required. It is typically used when a property owner or developer needs specialized expertise to manage complex development projects while ensuring compliance with Saudi regulations and Shariah law. The agreement establishes the development manager's authority to act on behalf of the owner, detailing their responsibilities in project planning, execution, cost control, and regulatory compliance. It includes specific provisions for local content requirements, municipal approvals, and environmental regulations unique to Saudi Arabia. The document is particularly relevant in the context of Saudi Vision 2030, which has sparked significant development activity across the kingdom, requiring structured project management approaches that align with both international best practices and local legal requirements.

What sections should be included in a Development Management Agreement?

1. Parties: Identification of the contracting parties including the property owner/employer and the development manager

2. Background: Context of the agreement, brief description of the development project, and parties' intentions

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

4. Appointment and Term: Formal appointment of the development manager, scope of authority, and duration of the agreement

5. Development Manager's Obligations: Comprehensive list of services, responsibilities, and deliverables to be provided

6. Client's Obligations: Responsibilities of the client including provision of information, approvals, and access

7. Development Program: Project timeline, milestones, and delivery schedules

8. Budget and Cost Control: Financial parameters, budget management, and cost reporting requirements

9. Fees and Payment Terms: Development manager's compensation structure, payment schedule, and invoicing procedures

10. Performance Standards: Required quality standards and performance metrics

11. Compliance and Permits: Obligations regarding legal compliance, obtaining necessary permits and approvals

12. Reporting and Communications: Regular reporting requirements, meeting schedules, and communication protocols

13. Insurance and Liability: Required insurance coverage and allocation of risks between parties

14. Termination: Circumstances and procedures for agreement termination

15. Dispute Resolution: Procedures for resolving disputes, including reference to Saudi law and courts

16. General Provisions: Standard contractual provisions including notices, amendments, and governing law

What sections are optional to include in a Development Management Agreement?

1. Sustainability Requirements: Specific environmental and sustainability obligations when project requires green building certification

2. Multi-Phase Development: Additional provisions for projects with multiple development phases

3. Special Purpose Vehicle: Provisions related to establishment and operation of an SPV if required for the project

4. Local Content Requirements: Specific provisions addressing Saudi Arabia's local content requirements and Saudization

5. Value Engineering: Procedures for cost optimization and value engineering if specifically required

6. Force Majeure: Detailed force majeure provisions if required beyond standard provisions

7. Intellectual Property Rights: Specific IP provisions if design or innovative solutions are part of the scope

8. Shariah Compliance: Additional provisions ensuring specific Shariah compliance requirements

What schedules should be included in a Development Management Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of development management services

2. Schedule 2 - Project Description: Detailed description of the development project including plans and specifications

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, payment milestones, and calculation methods

4. Schedule 4 - Development Program: Detailed project timeline, milestones, and critical dates

5. Schedule 5 - Key Personnel: List of key team members and their roles/responsibilities

6. Schedule 6 - Reporting Requirements: Ƶ and requirements for project reports

7. Schedule 7 - Required Insurances: Detailed insurance requirements and minimum coverage amounts

8. Schedule 8 - Project Budget: Detailed project budget breakdown and cost categories

9. Appendix A - Required Forms and Ƶ: Standard forms for applications, approvals, and reporting

10. Appendix B - Compliance Checklist: Checklist of regulatory requirements and permits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions





































































Clauses


















































Relevant Industries

Real Estate

Construction

Infrastructure Development

Commercial Property

Residential Development

Industrial Development

Hospitality

Retail Development

Mixed-use Development

Urban Planning

Relevant Teams

Legal

Real Estate

Development

Project Management

Construction

Compliance

Operations

Risk Management

Technical Services

Investment

Asset Management

Finance

Procurement

Relevant Roles

Development Director

Project Manager

Construction Manager

Legal Counsel

Contract Manager

Real Estate Director

Development Executive

Property Manager

Compliance Officer

Chief Development Officer

Investment Manager

Asset Manager

Operations Director

Risk Manager

Technical 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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