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Construction Management Agreement

Construction Management Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Management Agreement

"I need a Construction Management Agreement for a large-scale residential development project in Riyadh, Saudi Arabia, with work commencing in March 2025, including specific provisions for BIM implementation and LEED certification requirements."

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Document background
The Construction Management Agreement is a crucial document used in Saudi Arabian construction projects where professional project management expertise is required to oversee and coordinate complex construction activities. This agreement is particularly relevant in the context of Saudi Vision 2030, which has sparked numerous large-scale development projects across the Kingdom. The document establishes the legal framework for engaging a construction manager, defining their authority, responsibilities, and scope of services while ensuring compliance with Saudi Arabian laws and regulations, including Shariah principles, the Saudi Building Code, and labor laws. It typically includes detailed provisions for project coordination, quality control, safety management, and risk allocation, making it essential for projects requiring professional construction management services. The agreement is designed to protect both parties' interests while facilitating efficient project delivery within the unique legal and business environment of Saudi Arabia.
Suggested Sections

1. Parties: Identification of the Owner/Employer and the Construction Manager, including full legal names and addresses

2. Background: Context of the agreement, project overview, and basis for engagement

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Appointment and Scope of Services: Formal appointment and detailed scope of construction management services

5. Construction Manager's Obligations: Detailed responsibilities including project management, coordination, supervision, and reporting duties

6. Owner's Obligations: Owner's responsibilities including provision of information, approvals, and site access

7. Project Schedule: Timeline, milestones, and completion requirements

8. Compensation and Payment Terms: Fee structure, payment schedule, and invoicing procedures

9. Changes and Variations: Procedures for handling changes to scope, schedule, or costs

10. Quality Control and Compliance: Quality management requirements and compliance with applicable laws and standards

11. Health, Safety and Environmental Requirements: HSE obligations and compliance requirements

12. Insurance and Liability: Required insurance coverage and liability provisions

13. Term and Termination: Duration of agreement and termination provisions

14. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

15. General Provisions: Standard legal provisions including notices, assignment, and governing law

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, optional based on project value and client requirements

2. Value Engineering: Provisions for cost optimization and efficiency improvements, included for complex projects

3. BIM Requirements: Building Information Modeling obligations, included for projects utilizing BIM

4. Force Majeure: Provisions for unforeseen circumstances, recommended for long-term projects

5. Intellectual Property Rights: IP provisions, included when design or innovative methods are involved

6. Local Content Requirements: Saudi Aramco or government requirements for local content, included for public or oil/gas sector projects

7. Confidentiality: Confidentiality obligations, included for sensitive projects

8. Step-in Rights: Owner's right to take over services, included for critical infrastructure projects

Suggested Schedules

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

2. Schedule 2 - Fee Schedule: Detailed fee breakdown and payment mechanisms

3. Schedule 3 - Project Schedule: Detailed project timeline and milestones

4. Schedule 4 - Key Personnel: List of key personnel and their roles

5. Schedule 5 - Required Reports and Documentation: List of required reports and their frequency

6. Schedule 6 - Site Information: Details of the project site and conditions

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

8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements

9. Appendix A - Power of Attorney: Authorization documents for project representation

10. Appendix B - Form of Performance Security: Template for performance bond or guarantee

11. Appendix C - Insurance Requirements: Detailed insurance coverage requirements

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Approved
As-Built Documents
Authority
Building Permit
Change Order
Commencement Date
Completion Certificate
Confidential Information
Construction Documents
Construction Manager
Construction Manager's Fee
Construction Phase
Construction Schedule
Contract Documents
Contractor
Defects Liability Period
Deliverables
Design Consultant
Dispute
Effective Date
Employer
Extension of Time
Final Completion
Force Majeure Event
Good Industry Practice
Governing Law
Government
HSE Requirements
Intellectual Property Rights
Key Personnel
Milestone
Notice
Owner
Payment Certificate
Performance Security
Phase
Project
Project Budget
Project Schedule
Quality Management Plan
Records
Reimbursable Expenses
Safety Requirements
Saudi Building Code
Scope of Services
Site
Specifications
Subcontractor
Substantial Completion
Technical Specifications
Term
Variation
Work
Working Day
Zakat and Tax
Clauses
Services Scope
Appointment
Term
Construction Manager's Obligations
Owner's Obligations
Project Management
Quality Control
Health and Safety
Environmental Protection
Labor Requirements
Fees and Payment
Performance Security
Insurance
Indemnification
Liability
Variations
Extensions of Time
Force Majeure
Suspension
Termination
Dispute Resolution
Governing Law
Assignment
Confidentiality
Intellectual Property
Notices
Compliance with Laws
Anti-corruption
Records and Audit
Warranties
Defects Liability
Project Schedule
Site Access
Reporting Requirements
Subcontracting
Risk Management
Change Management
Documentation Requirements
Performance Standards
Local Content Requirements
Relevant Industries

Real Estate Development

Infrastructure

Oil & Gas

Healthcare

Education

Industrial

Commercial

Hospitality

Religious Buildings

Government/Public Works

Transportation

Energy & Utilities

Relevant Teams

Legal

Operations

Commercial

Construction

Project Management

Risk & Compliance

Health & Safety

Quality Assurance

Procurement

Technical

Finance

Business Development

Executive Leadership

Relevant Roles

Construction Manager

Project Director

Commercial Manager

Contract Manager

Project Manager

Development Manager

Technical Director

Operations Manager

Risk Manager

Quality Assurance Manager

HSE Manager

Cost Controller

Procurement Manager

Legal Counsel

Chief Executive Officer

Chief Operating Officer

Construction Director

Senior Project Engineer

Industries
Saudi Civil Code (Based on Islamic Shariah): Fundamental principles governing contracts and commercial transactions in Saudi Arabia, including contract formation, validity, and enforcement
Government Tenders and Procurement Law (Royal Decree M/128): Regulates government procurement and tendering processes, essential for public construction projects
Saudi Building Code (SBC): Comprehensive regulations governing construction standards, safety requirements, and technical specifications for buildings
Saudi Labor Law (Royal Decree M/51): Governs employment relationships, working conditions, and rights of workers in construction projects
Environmental Law (Royal Decree M/165): Regulations concerning environmental protection and impact assessment for construction projects
Commercial Registration Law: Requirements for business registration and licensing of construction management companies
Saudi Council of Engineers Law: Regulations governing engineering practices and professional requirements for construction managers
Anti-Commercial Fraud Law: Provisions against fraudulent practices in commercial transactions and construction contracts
Arbitration Law (Royal Decree M/34): Framework for dispute resolution in commercial and construction contracts
Zoning and Municipal Regulations: Local regulations governing construction permits, land use, and development requirements
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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