Construction Management Agency Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Management Agency Contract

"I need a Construction Management Agency Contract for a large-scale hospital development project in Riyadh, Saudi Arabia, with construction starting March 2025, where the Construction Manager will need extensive authority to manage multiple contractors and ensure compliance with Saudi healthcare facility regulations."

Document background
The Construction Management Agency Contract is utilized when a project owner requires professional construction management services but wishes to maintain direct contractual relationships with contractors and suppliers. This document, governed by Saudi Arabian law, establishes the Construction Manager as the owner's agent, detailing their authority to act on behalf of the owner while managing the construction process. It includes comprehensive provisions for project oversight, coordination, cost control, schedule management, and quality assurance, all while ensuring compliance with Saudi regulations, including the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. The agreement is particularly relevant for complex projects where specialized expertise is needed to manage multiple contractors, coordinate with authorities, and ensure adherence to local requirements and standards.
Suggested Sections

1. Parties: Identification of the Principal (Owner) and the Construction Manager as Agent, including their full legal names, addresses, and commercial registration details

2. Background: Context of the project, relationship between parties, and basis for entering into the agreement

3. Definitions and Interpretation: Key terms used throughout the agreement, including project-specific terminology and interpretation rules

4. Appointment and Scope of Authority: Formal appointment of the Construction Manager as agent and detailed scope of delegated authority

5. Construction Manager's Services: Comprehensive list of services to be provided, including pre-construction, construction phase, and post-construction services

6. Principal's Obligations: Responsibilities and obligations of the Principal, including provision of information and timely decision-making

7. Project Timeline and Milestones: Key dates, phases, and milestones for the project delivery

8. Compensation and Payment Terms: Fee structure, payment schedule, and reimbursable expenses, ensuring Sharia compliance

9. Performance Standards: Required standards of performance, professional conduct, and compliance with Saudi regulations

10. Reporting and Communication: Requirements for project reporting, meetings, and communication protocols

11. Risk Management and Insurance: Risk allocation, required insurance coverage, and indemnification provisions

12. Compliance with Laws: Obligations to comply with Saudi laws, regulations, and Sharia principles

13. Term and Termination: Duration of the agreement and grounds for termination

14. Dispute Resolution: Procedures for dispute resolution in accordance with Saudi law, including reference to local courts or arbitration

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

Optional Sections

1. Design Management Services: Additional section when the Construction Manager's scope includes design management responsibilities

2. Value Engineering: Optional section for projects requiring specific value engineering services

3. Sustainability Requirements: Section addressing specific environmental and sustainability requirements when project requires LEED or similar certification

4. Multiple Project Sites: Additional provisions for managing multiple construction sites under the same agreement

5. Security Requirements: Special security provisions for sensitive or high-security projects

6. Technology and BIM Requirements: Specific requirements for use of Building Information Modeling or other technology platforms

7. Local Content Requirements: Detailed provisions for meeting Saudization and local content requirements when applicable

8. Force Majeure: Specific provisions for force majeure events beyond standard provisions when project has particular sensitivities

Suggested Schedules

1. Schedule 1 - Project Description: Detailed description of the project scope, specifications, and requirements

2. Schedule 2 - Services Matrix: Detailed breakdown of Construction Management services and responsibilities

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, payment milestones, and reimbursable expenses

4. Schedule 4 - Key Personnel: List of key personnel from both parties with roles and responsibilities

5. Schedule 5 - Project Program: Detailed project timeline, milestones, and delivery schedule

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

7. Schedule 7 - Quality Management Plan: Quality assurance and control procedures and requirements

8. Schedule 8 - Site Information: Details of the construction site, access, and any special conditions

9. Appendix A - Power of Attorney: Formal delegation of authority to the Construction Manager as required under Saudi law

10. Appendix B - Required Forms and Templates: Standard forms and templates to be used during project execution

11. Appendix C - Insurance Requirements: Detailed insurance requirements and certificates

12. Appendix D - Applicable Regulations: List of specific Saudi regulations and standards applicable to 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

Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Infrastructure

Energy

Healthcare

Education

Industrial

Commercial

Hospitality

Government/Public Sector

Transportation

Religious Facilities

Relevant Teams

Legal

Operations

Commercial

Project Management

Risk and Compliance

Finance

Procurement

Technical Services

Quality Assurance

Health and Safety

Business Development

Relevant Roles

Construction Manager

Project Director

Contract Manager

Legal Counsel

Risk Manager

Commercial Director

Project Controls Manager

Technical Director

Chief Executive Officer

Operations Director

Procurement Manager

Quality Assurance Manager

Health and Safety Manager

Compliance Officer

Finance 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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