Document background
The Construction Settlement Agreement is a crucial document used in Saudi Arabia when parties involved in construction projects need to resolve disputes, claims, or differences without proceeding to litigation or arbitration. It is particularly relevant when parties have reached an agreement on settling various issues such as payment disputes, delay claims, variation claims, or quality-related matters. The document must comply with Saudi Arabian law, including Sharia principles and specific construction regulations, making it essential to include appropriate provisions that will be enforceable in Saudi courts. This agreement type is commonly used in both private and public sector projects, with additional requirements applying to government contracts under the Government Tenders and Procurement Law. The document typically includes detailed terms about settlement amounts, payment schedules, mutual releases, and any continuing obligations, while also addressing specific local legal requirements such as appropriate governing law and jurisdiction clauses.
