New Home Construction Agreement Template for Saudi Arabia

The New Home Construction Agreement is a crucial legal document used in Saudi Arabia when a property owner engages a contractor to build a new residential property. This agreement is essential for protecting both parties' interests and ensuring compliance with Saudi building regulations, municipal requirements, and Sharia Law principles. It should be used at the commencement of any new home construction project in Saudi Arabia, before any construction work begins. The document typically includes detailed construction specifications, payment schedules, completion timelines, quality standards, and dispute resolution procedures. It must comply with the Saudi Building Code and local municipality requirements, while also addressing environmental considerations and necessary permits. This agreement is particularly important in the Saudi Arabian context due to specific local construction regulations and Sharia-compliant contracting requirements.

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

2. Background: Context of the agreement, including property details and construction purpose

3. Definitions: Key terms used throughout the agreement

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Price and Payment Terms: Total contract value, payment schedule, and payment conditions

6. Construction Timeline: Project schedule, completion date, and milestone deadlines

7. Contractor's Obligations: Responsibilities including quality standards, materials, workforce, and compliance with regulations

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

9. Materials and Workmanship: Quality standards, material specifications, and approval processes

10. Variations and Changes: Process for handling changes to scope, pricing, or timeline

11. Inspections and Approvals: Requirements for regulatory inspections and owner approvals

12. Warranties and Defects Liability: Warranty terms and process for addressing defects

13. Insurance and Indemnification: Required insurance coverage and indemnification obligations

14. Termination: Grounds and process for contract termination

15. Force Majeure: Provisions for unforeseen circumstances and their handling

16. Dispute Resolution: Process for resolving disputes under Saudi law

17. Governing Law: Specification of Saudi law as governing law

18. Notices: Process for formal communications between parties