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Consortium Agreement Construction Project
"I need a Consortium Agreement Construction Project for a joint venture between three companies (one Saudi, two international) for a major hospital development in Riyadh, with construction starting March 2025 and including specific provisions for medical facility compliance and specialized medical equipment installation."
1. Parties: Identification of all consortium members with full legal names and registration details
2. Background: Context of the construction project and purpose of forming the consortium
3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Shariah-compliant terminology where relevant
4. Formation of Consortium: Legal basis of the consortium, relationship between parties, and compliance with Saudi law
5. Scope of Work: Detailed description of the construction project and each party's scope
6. Roles and Responsibilities: Specific duties and obligations of each consortium member
7. Leadership and Management: Governance structure, decision-making processes, and management procedures
8. Financial Provisions: Capital contributions, profit sharing, cost allocation, and banking arrangements
9. Performance Obligations: Key performance indicators, quality standards, and completion requirements
10. Representations and Warranties: Standard and specific warranties from each party
11. Risk Allocation: Distribution of risks among consortium members
12. Insurance and Liability: Required insurance coverage and liability limitations
13. Compliance and Permits: Regulatory compliance requirements and responsibility for obtaining permits
14. Confidentiality: Protection of confidential information and trade secrets
15. Term and Termination: Duration of agreement and termination provisions
16. Dispute Resolution: Dispute resolution procedures compliant with Saudi law
17. Governing Law: Application of Saudi law and Shariah principles
18. General Provisions: Standard boilerplate clauses adapted for Saudi context
1. Local Content Requirements: Section addressing Saudi Aramco's In-Kingdom Total Value Add (IKTVA) program requirements, used when project falls under IKTVA scope
2. Technology Transfer: Provisions for technology transfer and knowledge sharing, included when required by government contracts
3. Environmental Compliance: Detailed environmental obligations, required for projects with significant environmental impact
4. Security Requirements: Special security measures, included for sensitive or government-related projects
5. Force Majeure: Specific force majeure provisions, optional but recommended for long-term projects
6. Step-in Rights: Rights of parties to step in and take over responsibilities, used in complex projects
7. Parent Company Guarantees: Guarantees from parent companies, required when consortium members are subsidiaries
1. Schedule 1 - Project Scope: Detailed technical specifications and scope of the construction project
2. Schedule 2 - Consortium Members' Contributions: Detailed breakdown of each member's contributions (financial, technical, human resources)
3. Schedule 3 - Project Timeline: Detailed project schedule, milestones, and deadlines
4. Schedule 4 - Financial Model: Detailed financial arrangements, including cost allocation and payment mechanisms
5. Schedule 5 - Quality Assurance Plan: Quality standards and control procedures
6. Schedule 6 - Key Personnel: List of key personnel from each consortium member
7. Schedule 7 - Forms of Guarantees: Template forms for required guarantees and bonds
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage limits
9. Schedule 9 - Compliance Requirements: Detailed regulatory and permit requirements
10. Appendix A - Power of Attorney: Authorization documents for consortium representatives
11. Appendix B - Corporate Authorizations: Corporate approvals and board resolutions
Authors
Applicable Laws
Approved Bank
Background IP
Business Day
Capital Contribution
Change of Control
Commencement Date
Completion Certificate
Confidential Information
Consortium
Consortium Board
Consortium Leader
Construction Documents
Construction Period
Construction Schedule
Contract Price
Defects Liability Period
Deliverables
Design Documents
Dispute
Effective Date
Environmental Laws
Force Majeure Event
Good Industry Practice
Governing Law
Government Authority
IKTVA Requirements
Intellectual Property Rights
Key Personnel
Lead Party
Material Adverse Effect
Member(s)
Milestone(s)
Non-Defaulting Party
Notice
Parent Company
Parent Company Guarantee
Party/Parties
Performance Bond
Performance Standards
Permits
Project
Project Manager
Project Site
Quality Assurance Plan
Related Party
Risk Management Plan
Saudi Arabian Law
Scope of Work
Services
Shariah Principles
Specifications
Subcontractor
Technical Standards
Term
Termination Event
Third Party
Time for Completion
Variation
Work Package
Working Hours
Zakat
Formation of Consortium
Duration
Consortium Management
Decision Making
Capital Contributions
Profit Sharing
Project Execution
Performance Obligations
Construction Standards
Quality Assurance
Health and Safety
Environmental Compliance
Local Content Requirements
Labor Requirements
Permits and Licenses
Representations and Warranties
Risk Allocation
Insurance
Liability
Intellectual Property
Confidentiality
Competition and Exclusivity
Force Majeure
Change Management
Default
Termination
Step-in Rights
Assignment
Dispute Resolution
Governing Law
Notices
Bank Guarantees
Parent Company Guarantees
Amendments
Entire Agreement
Severability
Waiver
Third Party Rights
Counterparts
Language
Compliance with Laws
Anti-corruption
Data Protection
Shariah Compliance
Construction
Infrastructure
Real Estate Development
Energy
Industrial Development
Transportation
Healthcare Construction
Education Infrastructure
Commercial Development
Government Infrastructure
Religious Infrastructure
Tourism Development
Legal
Construction
Project Management
Commercial
Finance
Operations
Risk Management
Compliance
Business Development
Technical
Procurement
Strategic Planning
Joint Ventures
Chief Executive Officer
Managing Director
Construction Project Director
Legal Counsel
Contract Manager
Project Manager
Chief Financial Officer
Commercial Director
Operations Director
Risk Manager
Technical Director
Business Development Manager
Compliance Officer
Construction Manager
Procurement Manager
Joint Venture Manager
Strategic Alliance Director
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