Framework Agreement (Construction) Template for Saudi Arabia

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Key Requirements PROMPT example:

Framework Agreement (Construction)

"I need a Construction Framework Agreement for a 5-year arrangement with multiple contractors to deliver residential development projects in Riyadh, with an estimated total value of SAR 500 million, including specific provisions for local content requirements and Shariah-compliant payment terms."

Document background
The Framework Agreement (Construction) is designed for use in Saudi Arabian construction projects where parties anticipate an ongoing relationship for multiple construction works or services. This document type is particularly valuable for large-scale development projects, government infrastructure initiatives, or recurring construction needs where efficiency in procurement is essential. The agreement complies with Saudi Arabian law, including the Government Tenders and Procurement Law and Shariah principles, while providing a flexible mechanism for issuing work orders under pre-agreed terms. It includes provisions for pricing, performance standards, safety requirements, and dispute resolution, tailored to the Saudi construction sector. The framework structure allows parties to avoid repetitive negotiations while maintaining quality standards and legal compliance across multiple construction projects.
Suggested Sections

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

2. Background: Context of the agreement, relationship between parties, and general intent of the framework arrangement

3. Definitions and Interpretation: Defined terms, interpretation rules, and order of precedence of documents

4. Framework Structure: Mechanism for issuing work orders, call-off procedures, and framework operation

5. Scope of Services: General description of construction services covered under the framework

6. Duration and Term: Framework agreement duration, extension options, and survival clauses

7. Work Order Process: Procedures for issuing, accepting, and executing work orders

8. Pricing and Payment Terms: Framework rates, pricing mechanism, payment terms, and invoicing requirements

9. Performance Standards: Quality requirements, standards, and specifications applicable to all work

10. Contractor Obligations: General obligations, compliance requirements, and performance standards

11. Client Obligations: Client responsibilities, access provisions, and information requirements

12. Changes and Variations: Procedures for handling changes to framework terms or specific work orders

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

14. Insurance and Liability: Insurance requirements, liability provisions, and indemnification

15. Termination: Termination rights, procedures, and consequences

16. Force Majeure: Force majeure events and consequences, compliant with Saudi law

17. Dispute Resolution: Dispute resolution procedures, including Shariah-compliant arbitration

18. Governing Law: Saudi law as governing law and Shariah compliance statement

19. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Security: Include when performance bonds or other security instruments are required

2. Intellectual Property: Include when design services or IP rights are relevant to the framework

3. Confidentiality: Include as separate section when enhanced confidentiality provisions are needed

4. Local Content Requirements: Include when specific Saudi local content requirements apply

5. Warranties: Include as separate section when specific warranty periods and terms are required

6. Step-in Rights: Include when client requires right to step in and take over works

7. Environmental Protection: Include as separate section for environmentally sensitive projects

8. Quality Assurance: Include when specific quality management systems are required

9. Technology and Systems: Include when specific technology or systems requirements apply

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed description of construction services covered under the framework

2. Schedule 2 - Pricing Schedule: Detailed rates, prices, and pricing mechanisms

3. Schedule 3 - Form of Work Order: Template for individual work orders under the framework

4. Schedule 4 - KPIs and Performance Criteria: Detailed performance metrics and measurement criteria

5. Schedule 5 - Required Insurances: Detailed insurance requirements and minimum coverage levels

6. Schedule 6 - HSE Requirements: Detailed health, safety, and environmental requirements

7. Schedule 7 - Technical Standards: Applicable technical standards and specifications

8. Schedule 8 - Key Personnel: Required key personnel and their qualifications

9. Schedule 9 - Forms of Security: Templates for performance bonds and other security instruments

10. Schedule 10 - Compliance Requirements: Detailed regulatory and compliance requirements under Saudi law

11. Appendix A - Site Access Requirements: Procedures and requirements for accessing work sites

12. Appendix B - Quality Management Plan: Quality management procedures and 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

Construction

Infrastructure

Real Estate Development

Oil & Gas

Energy

Industrial Development

Commercial Development

Residential Development

Transportation

Healthcare

Education

Hospitality

Government Infrastructure

Mining

Petrochemicals

Relevant Teams

Legal

Commercial

Procurement

Operations

Project Management

Risk & Compliance

Technical

Business Development

Finance

Health Safety & Environment

Quality Assurance

Contract Administration

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Commercial Manager

Contracts Manager

Procurement Manager

Chief Executive Officer

Operations Director

Technical Director

Risk Manager

Compliance Officer

Business Development Manager

Project Control Manager

Cost Control Manager

HSE Manager

Quality Assurance 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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