Engineering Procurement And Construction Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Engineering Procurement And Construction Agreement

"Need an Engineering Procurement And Construction Agreement for a petrochemical plant project in Jubail Industrial City, Saudi Arabia, with project completion scheduled for December 2025; agreement must include technology licensing provisions and local content requirements as per Saudi Aramco standards."

Document background
The Engineering Procurement And Construction Agreement is a crucial contract type used in Saudi Arabia for large-scale construction and infrastructure projects where a single contractor takes full responsibility for design, procurement, and construction activities. This document is particularly important in the context of Saudi Vision 2030, which has driven increased development across various sectors. The agreement must comply with Saudi Arabian law, including Sharia principles and local content requirements, while incorporating international best practices in EPC contracting. It is typically used for complex industrial, infrastructure, or development projects where the owner seeks a turnkey solution with single-point responsibility. The document includes detailed provisions for project execution, risk allocation, performance guarantees, and dispute resolution mechanisms specific to the Saudi Arabian jurisdiction.
Suggested Sections

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details

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

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. Scope of Work: Detailed description of engineering, procurement, and construction obligations

5. Contract Price and Payment Terms: Price structure, payment schedule, milestones, and payment mechanisms

6. Project Schedule: Timeline, key milestones, completion dates, and scheduling obligations

7. Contractor's Obligations: Detailed responsibilities including design, procurement, construction, testing, and commissioning

8. Owner's Obligations: Owner's responsibilities including site access, permits, and approvals

9. Quality Assurance and Control: Quality standards, inspection procedures, and testing requirements

10. Changes and Variations: Procedures for handling changes to scope, price, or schedule

11. Testing and Commissioning: Requirements and procedures for testing, commissioning, and performance guarantees

12. Completion and Handover: Conditions for substantial and final completion, acceptance criteria

13. Defects Liability: Warranty obligations and defect rectification procedures

14. Insurance and Liability: Required insurance coverage and liability allocation

15. Force Majeure: Definition of force majeure events and consequential procedures

16. Suspension and Termination: Rights and procedures for contract suspension and termination

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

18. Governing Law: Confirmation of Saudi Arabian law as governing law and relevant jurisdictional matters

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used when additional financial security is required

2. Export Control: Provisions dealing with import/export regulations, needed for international procurement

3. Technology License: Terms for technology transfer and licensing, included when proprietary technology is involved

4. Environmental Compliance: Specific environmental obligations, included for environmentally sensitive projects

5. Local Content Requirements: Provisions for meeting Saudi local content requirements, included when applicable to project scope

6. Training and Knowledge Transfer: Requirements for training owner's personnel, included when operational training is needed

7. Intellectual Property Rights: Specific IP provisions, included when significant IP rights are involved

8. Parent Company Guarantee: Terms of parent company support, included when contractor's financial strength needs reinforcement

Suggested Schedules

1. Schedule 1 - Scope of Work: Detailed technical specifications and scope description

2. Schedule 2 - Project Schedule: Detailed project timeline with milestones and critical path

3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and payment milestones

4. Schedule 4 - Site Information: Site details, conditions, and access requirements

5. Schedule 5 - Technical Standards: Applicable technical standards and specifications

6. Schedule 6 - Key Personnel: List of key personnel and their roles

7. Schedule 7 - Forms of Guarantees: Templates for various guarantees and bonds

8. Schedule 8 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning

9. Schedule 9 - Permits and Licenses: List of required permits and responsible parties

10. Schedule 10 - Insurance Requirements: Detailed insurance requirements and coverage limits

11. Appendix A - Drawing List: List of contract drawings and specifications

12. Appendix B - Form of Monthly Progress Report: Template for progress reporting

13. Appendix C - Quality Assurance Plan: Detailed quality management procedures

14. Appendix D - HSE Requirements: Health, safety, and environmental 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

Relevant legal definitions
Clauses
Relevant Industries

Oil & Gas

Power Generation

Petrochemicals

Infrastructure Development

Industrial Manufacturing

Mining & Metals

Renewable Energy

Water Treatment

Healthcare Facilities

Transportation Infrastructure

Real Estate Development

Defense Infrastructure

Relevant Teams

Legal

Project Management

Engineering

Procurement

Construction

Commercial

Finance

Risk Management

Compliance

Health Safety Environment

Quality Assurance

Operations

Business Development

Technical Services

Contract Administration

Relevant Roles

Project Director

Contract Manager

Chief Legal Officer

Project Manager

Engineering Manager

Procurement Manager

Construction Manager

Commercial Director

Risk Manager

Technical Director

Finance Director

Compliance Officer

HSE Manager

Quality Assurance Manager

Operations Director

Business Development Manager

Legal Counsel

Chief Executive Officer

Chief Financial Officer

Technical Advisor

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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