The Construction Partnership Agreement is essential for entities looking to collaborate on construction projects in Saudi Arabia. It is particularly relevant when two or more companies wish to combine their expertise, resources, and capabilities for specific construction projects or ongoing collaboration in the construction sector. The document must comply with Saudi Arabian law, including the Companies Law, Building Code, and Shariah principles. It covers crucial aspects such as partnership structure, capital contributions, profit-sharing, project management, regulatory compliance, and dispute resolution. This agreement is commonly used for large-scale construction projects, infrastructure development, or when local and international construction companies form partnerships to meet project requirements and Saudization goals.
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1. Parties: Identification of all partnership parties, including their legal status and registration details in Saudi Arabia
2. Background: Context of the partnership formation, project overview, and parties' intentions
3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including reference to Saudi law terminology
4. Partnership Structure: Legal structure, ownership percentages, capital contributions, and registration requirements under Saudi Companies Law
5. Scope of Partnership: Detailed description of construction activities, project scope, and geographical limitations
6. Capital and Financing: Partnership capital, funding mechanisms, and profit/loss sharing arrangements in compliance with Shariah principles
7. Management and Control: Management structure, decision-making processes, and voting rights of partners
8. Construction Operations: Operational procedures, project management, and execution methodology
9. Duties and Responsibilities: Specific obligations of each partner, including technical, financial, and administrative responsibilities
10. Compliance and Permits: Obligations regarding Saudi building codes, permits, and regulatory compliance
11. Financial Matters: Financial management, accounting procedures, and distribution of profits/losses
12. Staff and Employment: Employment policies, Saudization requirements, and labor law compliance
13. Insurance and Liability: Insurance requirements and allocation of risks and liabilities
14. Term and Termination: Duration of partnership, renewal terms, and termination procedures
15. Dispute Resolution: Shariah-compliant dispute resolution procedures and jurisdiction clauses
16. Governing Law: Explicit reference to Saudi law governance and Shariah compliance
17. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions
1. Intellectual Property Rights: Required when the partnership involves development of unique construction methods or proprietary technology
2. Environmental Compliance: Necessary for projects with significant environmental impact or specific environmental requirements
3. Force Majeure: Detailed force majeure provisions for high-risk or long-term projects
4. Competition Restrictions: Non-compete and territorial restrictions when partners have competing interests
5. Technology and Systems: Required when specific construction technology or systems are central to the partnership
6. Quality Control: Detailed quality management procedures for complex construction projects
7. Training and Knowledge Transfer: Important when the partnership involves technology transfer or capacity building
8. Security Requirements: Necessary for projects involving sensitive locations or government facilities
1. Schedule 1 - Project Specifications: Detailed technical specifications and construction requirements
2. Schedule 2 - Capital Contributions: Detailed breakdown of each partner's capital contributions
3. Schedule 3 - Management Structure: Organizational chart and management procedures
4. Schedule 4 - Project Timeline: Construction milestones and project schedule
5. Schedule 5 - Equipment and Resources: List of equipment, machinery, and resources to be provided by each partner
6. Schedule 6 - Quality Standards: Specific quality standards and testing requirements
7. Schedule 7 - Form of Policies and Procedures: Standard operating procedures and policy templates
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements
9. Appendix A - Required Permits and Licenses: List of necessary regulatory approvals and permits
10. Appendix B - Key Personnel: Details of key management and technical staff
11. Appendix C - Safety Standards: Health and safety requirements and procedures
12. Appendix D - Environmental Management Plan: Environmental compliance and management procedures
Relevant legal definitions
Clauses
Partnership Formation
Capital Contribution
Profit and Loss Sharing
Management Rights
Voting Rights
Project Scope
Construction Standards
Quality Control
Health and Safety
Environmental Compliance
Regulatory Compliance
Labor Requirements
Saudization
Insurance
Indemnification
Risk Allocation
Force Majeure
Intellectual Property
Confidentiality
Non-Competition
Payment Terms
Performance Security
Warranties
Defects Liability
Change Management
Dispute Resolution
Termination Rights
Assignment
Subcontracting
Notice Requirements
Record Keeping
Audit Rights
Governing Law
Partnership Dissolution
Exit Rights
Equipment and Materials
Site Access
Project Timeline
Testing and Commissioning
Handover Requirements
Liability Limitations
Amendment Procedures
Entire Agreement
Severability
Language
Counterparts
Third Party Rights
Further Assurance
Capital Contribution
Profit and Loss Sharing
Management Rights
Voting Rights
Project Scope
Construction Standards
Quality Control
Health and Safety
Environmental Compliance
Regulatory Compliance
Labor Requirements
Saudization
Insurance
Indemnification
Risk Allocation
Force Majeure
Intellectual Property
Confidentiality
Non-Competition
Payment Terms
Performance Security
Warranties
Defects Liability
Change Management
Dispute Resolution
Termination Rights
Assignment
Subcontracting
Notice Requirements
Record Keeping
Audit Rights
Governing Law
Partnership Dissolution
Exit Rights
Equipment and Materials
Site Access
Project Timeline
Testing and Commissioning
Handover Requirements
Liability Limitations
Amendment Procedures
Entire Agreement
Severability
Language
Counterparts
Third Party Rights
Further Assurance
Relevant Industries
Construction
Infrastructure Development
Real Estate
Commercial Property
Industrial Development
Energy and Utilities
Transportation
Healthcare Infrastructure
Education Infrastructure
Residential Development
Mining
Oil and Gas Infrastructure
Relevant Teams
Legal
Operations
Finance
Construction Management
Project Management
Risk and Compliance
Commercial
Business Development
Technical Services
Strategic Planning
Contract Administration
Corporate Development
Relevant Roles
Chief Executive Officer
Managing Director
Construction Director
Project Manager
Legal Counsel
Contract Manager
Operations Director
Finance Director
Technical Director
Risk Manager
Compliance Officer
Business Development Manager
Construction Manager
Partnership Manager
Chief Operating Officer
Site Manager
Commercial Director
Strategic Planning Director
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