Basic Building Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Basic Building Contract

"I need a Basic Building Contract for a residential apartment complex construction project in Riyadh, with a project value of 50 million SAR and completion date of March 2025, including specific provisions for sustainable building materials and local workforce requirements."

Document background

The Basic Building Contract is a fundamental legal instrument used in Saudi Arabia for managing construction projects and establishing clear contractual relationships between project owners and contractors. This document is particularly suitable for straightforward construction projects where a standard form of contract is needed, incorporating essential elements required by Saudi law and construction industry practices. It includes provisions for scope of work, payment mechanisms, project timelines, and quality requirements while ensuring compliance with Saudi Building Code and local regulations. The contract is designed to be compliant with both Sharia principles and Saudi commercial law, making it appropriate for use in the Kingdom's construction sector. It provides a balanced framework that protects the interests of both parties while maintaining alignment with local legal requirements and construction industry standards.

Suggested Sections

1. Parties: Identification of the Employer and Contractor, including their full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of the construction project

3. Definitions: Definitions of key terms used throughout the contract

4. Scope of Works: Detailed description of the construction works to be performed by the Contractor

5. Contract Price and Payment Terms: The agreed price, payment schedule, and payment mechanisms

6. Time for Completion: Project timeline, completion date, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities and obligations of the Contractor including compliance with local regulations

8. Employer's Obligations: Key responsibilities and obligations of the Employer including site access and permits

9. Materials and Workmanship: Standards for materials and workmanship, including compliance with Saudi Building Code

10. Variations: Procedures for handling changes to the scope of works

11. Quality Control and Inspection: Requirements for quality assurance and inspection procedures

12. Health and Safety: Health and safety requirements compliant with Saudi regulations

13. Insurance and Securities: Required insurance coverage and performance securities

14. Defects Liability: Defects liability period and remediation procedures

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes in accordance with Saudi law

17. Governing Law: Confirmation of Saudi law as governing law and relevant jurisdictional matters

Optional Sections

1. Force Majeure: Provisions for unforeseen circumstances preventing contract performance - included for higher-value projects

2. Subcontracting: Terms governing the appointment and management of subcontractors - included when subcontracting is anticipated

3. Environmental Protection: Specific environmental requirements - included for projects with significant environmental impact

4. Islamic Finance Compliance: Specific provisions ensuring compliance with Islamic finance principles - included when Islamic financing is involved

5. Liquidated Damages: Pre-agreed damages for specific breaches - included for larger projects or where specific milestones are crucial

6. Site Security: Specific security requirements - included for sensitive locations or high-security projects

7. Technology and IP Rights: Provisions regarding intellectual property and technology - included for projects involving significant technical elements

Suggested Schedules

1. Schedule 1 - Works Description: Detailed technical specifications and scope of works

2. Schedule 2 - Project Programme: Detailed timeline and project milestones

3. Schedule 3 - Payment Schedule: Detailed breakdown of payments and payment milestones

4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions

5. Schedule 5 - Required Permits: List of required permits and responsibilities for obtaining them

6. Schedule 6 - Key Personnel: Details of key project personnel and their responsibilities

7. Schedule 7 - Forms of Securities: Templates for performance bonds and other required securities

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage levels

9. Appendix A - Drawings: Technical drawings and plans

10. Appendix B - Bill of Quantities: Detailed breakdown of quantities and rates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Public Works

Energy

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Construction

Commercial

Procurement

Finance

Operations

Compliance

Risk Management

Technical

Project Controls

Development

Engineering

Relevant Roles

Construction Manager

Project Director

Contract Manager

Legal Counsel

Commercial Manager

Procurement Manager

Site Engineer

Project Engineer

Quantity Surveyor

Risk Manager

Compliance Officer

Technical Director

Development Manager

Operations Manager

Chief Financial Officer

Project Control Manager

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Agreement With Builder For (Construction)

A Saudi Arabian law-governed agreement between property owner and builder establishing terms and conditions for construction works, incorporating local building regulations and Sharia Law principles.

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Let's create your Basic Building Contract

Authors

Alex Denne

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