Construction Contract Amendment for Saudi Arabia

Construction Contract Amendment Template for Saudi Arabia

A formal amendment to an existing construction contract governed by Saudi Arabian law, designed to modify specific terms, conditions, or scope of the original agreement while ensuring compliance with Saudi legal requirements, including the Government Tenders and Procurement Law and Saudi Building Code. This document captures changes to project specifications, timelines, costs, or other contractual obligations, incorporating necessary approvals and maintaining Sharia compliance. It serves as a legally binding modification to the original construction contract, documenting agreed changes between the parties and their implications on project delivery.

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What is a Construction Contract Amendment?

A Construction Contract Amendment is essential when parties need to formally modify an existing construction agreement in Saudi Arabia. This document is typically used when there are significant changes to project scope, timeline, costs, or other contractual terms that require formal documentation and mutual agreement. It must comply with Saudi Arabian law, including the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. The amendment should be used when changes exceed the variation limits in the original contract, when regulatory requirements necessitate contract modification, or when parties agree to substantial alterations in project delivery. It includes detailed specifications of the changes, their impacts, necessary approvals, and authentication requirements under Saudi law. This document is particularly crucial in Saudi Arabia's construction sector, where regulatory compliance and formal documentation of changes are strictly enforced.

What sections should be included in a Construction Contract Amendment?

1. Parties: Identification of the contracting parties, including their full legal names, addresses, and commercial registration details as per Saudi requirements

2. Background: Reference to the original contract, its date, and the need for amendment

3. Definitions: Key terms used in the amendment, including any new definitions not in the original contract

4. Amendment Authority: Reference to the clause in the original contract permitting amendments and confirmation of compliance with Saudi law

5. Scope of Amendment: Clear description of the specific changes being made to the original contract

6. Time Impact: Effect of the amendment on the project timeline and completion dates

7. Cost Implications: Changes to contract price, payment terms, or financial arrangements

8. Continuing Effect: Confirmation that all other terms of the original contract remain in full force and effect

9. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and relevant dispute resolution provisions

10. Execution: Formal execution block compliant with Saudi legal requirements

What sections are optional to include in a Construction Contract Amendment?

1. Quality Standards Modification: Include when amendments affect quality requirements or technical specifications

2. Health and Safety Requirements: Include when amendments impact safety protocols or requirements

3. Environmental Compliance: Include when amendments affect environmental obligations or permits

4. Security and Performance Guarantees: Include when amendments affect existing bonds, guarantees, or warranty obligations

5. Insurance Requirements: Include when amendments necessitate changes to insurance coverage

6. Force Majeure Provisions: Include when amendments are related to force majeure events or risk allocation

7. Saudization Requirements: Include when amendments affect staffing or local content requirements

What schedules should be included in a Construction Contract Amendment?

1. Schedule 1 - Amended Scope of Work: Detailed description of modified work scope, including technical specifications

2. Schedule 2 - Revised Program: Updated project timeline and milestone dates

3. Schedule 3 - Price Adjustment Details: Breakdown of cost changes and payment schedule modifications

4. Schedule 4 - Modified Drawings: Updated technical drawings affected by the amendment

5. Schedule 5 - Revised Key Personnel: Changes to key personnel or organizational structure if applicable

6. Appendix A - Required Approvals: Copies of any governmental or regulatory approvals required for the amendment

7. Appendix B - Amendment Impact Analysis: Technical analysis of the amendment's impact on the project

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Amendment Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Residential Development

Infrastructure

Industrial Construction

Oil & Gas

Healthcare

Education

Hospitality

Religious Buildings

Transportation

Energy & Utilities

Mining

Manufacturing

Government & Public Works

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Engineering

Operations

Risk & Compliance

Finance

Technical Services

Contract Administration

Quality Assurance

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Commercial Director

Chief Engineer

Quantity Surveyor

Risk Manager

Procurement Manager

Cost Controller

Technical Director

Operations Manager

Claims Manager

Compliance Officer

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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