Design Build Lump Sum Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Design Build Lump Sum Contract

"I need a Design Build Lump Sum Contract for a renewable energy facility in Riyadh, Saudi Arabia, with construction starting in March 2025, that includes specific provisions for solar technology implementation and local content requirements under Saudi Vision 2030."

Document background
The Design Build Lump Sum Contract is a specialized agreement used in construction projects where the client seeks to transfer both design and construction responsibility to a single contractor for a fixed price. This contract type is particularly suitable for projects in Saudi Arabia where certainty of cost is a priority and where the employer wishes to have a single point of responsibility for project delivery. The document incorporates essential elements of Saudi Arabian law, including Sharia compliance, local building codes, and construction regulations. It is structured to provide comprehensive coverage of design obligations, construction requirements, payment mechanisms, quality standards, and dispute resolution procedures. This contract type is commonly used in complex construction projects where the employer has clear project requirements but wishes to benefit from the contractor's design expertise while maintaining cost certainty.
Suggested Sections

1. Parties: Identification of the Employer and the Design-Build Contractor, including their legal status and authorized representatives

2. Background: Context of the project, including brief description and purpose

3. Definitions and Interpretation: Definitions of key terms and principles of interpretation

4. Contract Documents: Hierarchy and precedence of contract documents

5. Design-Builder's Obligations: Comprehensive scope of design and construction services, including warranties and fitness for purpose

6. Employer's Obligations: Site access, permits, approvals, and other employer responsibilities

7. Contract Price and Payment: Lump sum price, payment schedule, and Sharia-compliant payment mechanisms

8. Time for Completion: Project schedule, milestones, and completion requirements

9. Changes and Variations: Procedures for handling changes to scope, time, or price

10. Quality and Compliance: Quality standards, testing, and compliance with Saudi regulations

11. Health, Safety, and Environment: HSE requirements and compliance with Saudi regulations

12. Force Majeure: Definition and consequences of force majeure events

13. Suspension and Termination: Rights and procedures for suspension and termination

14. Defects Liability: Defects notification period and remediation obligations

15. Insurance and Indemnities: Required insurance coverage and indemnification obligations

16. Dispute Resolution: Dispute resolution procedures compliant with Saudi law

17. Governing Law: Application of Saudi law and Sharia principles

Optional Sections

1. Advance Payment: Optional section for projects requiring advance payment, including bank guarantee requirements

2. Performance Security: Optional section for projects requiring performance bonds or guarantees

3. Intellectual Property Rights: Optional section for projects with significant design or technology components

4. Confidentiality: Optional section for projects involving sensitive information

5. Local Content Requirements: Optional section detailing Saudization and local content requirements for larger projects

6. Interface Management: Optional section for projects involving multiple contractors or stakeholders

7. Building Information Modeling (BIM): Optional section for projects utilizing BIM technology

8. Commissioning and Testing: Optional section for complex facilities requiring detailed commissioning procedures

Suggested Schedules

1. Schedule 1 - Employer's Requirements: Detailed technical and functional requirements for the project

2. Schedule 2 - Site Information: Site details, surveys, and existing conditions

3. Schedule 3 - Time Schedule: Detailed program, milestones, and completion dates

4. Schedule 4 - Payment Schedule: Payment milestones and breakdown of lump sum price

5. Schedule 5 - Key Personnel: List of key personnel and their qualifications

6. Schedule 6 - Forms of Guarantees: Templates for required bonds and guarantees

7. Schedule 7 - Testing and Commissioning: Testing requirements and acceptance criteria

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

9. Schedule 9 - Quality Assurance Requirements: Quality management system and inspection requirements

10. Schedule 10 - Forms of Certificates: Templates for various certificates including completion certificates

11. Appendix A - Design Drawings: Initial design drawings and specifications

12. Appendix B - Equipment List: List of major equipment and materials

13. Appendix C - Permits and Approvals: List of required permits and responsible parties

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

Infrastructure

Real Estate Development

Industrial

Energy

Healthcare

Education

Commercial Development

Transportation

Manufacturing

Hospitality

Retail

Relevant Teams

Legal

Commercial

Construction

Design

Project Management

Risk Management

Procurement

Finance

Operations

Compliance

Technical Services

Business Development

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Chief Executive Officer

Commercial Director

Project Manager

Design Manager

Technical Director

Risk Manager

Procurement Manager

Finance Director

Operations Director

Compliance Officer

Business Development Manager

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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