The Professional Services Contract serves as a fundamental legal instrument for businesses operating in Saudi Arabia who engage external expertise or provide professional services. This document is essential when establishing formal relationships for consulting, advisory, technical, or specialized professional services, ensuring compliance with Saudi Arabian laws, regulations, and Sharia principles. It addresses key aspects including service scope, delivery terms, payment structures, and risk allocation, while incorporating necessary provisions for local business practices and regulatory requirements. The contract is particularly relevant in the context of Saudi Vision 2030, which has increased demand for professional services across various sectors, and includes specific considerations for local content requirements and Saudi Arabian business regulations.
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Key Requirements PROMPT example:
Professional Services Contract
"I need a Professional Services Contract under Saudi law for an IT consulting firm providing digital transformation services to a government entity, with specific provisions for data protection and local content requirements, starting March 2025."
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1. Parties: Identification of the parties, including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement and general purpose of the professional services arrangement
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpreting the contract
4. Scope of Services: Detailed description of the professional services to be provided, including deliverables and performance standards
5. Term and Commencement: Duration of the agreement and conditions for commencement
6. Service Provider's Obligations: Key responsibilities and commitments of the service provider, including quality standards and compliance requirements
7. Client's Obligations: Responsibilities of the client, including provision of information and access necessary for service delivery
8. Fees and Payment Terms: Compensation structure, payment schedule, invoicing requirements, and VAT considerations
9. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created intellectual property
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: Handling and protection of personal and business data in compliance with Saudi regulations
12. Liability and Indemnification: Allocation of risks and responsibilities for damages or losses
13. Force Majeure: Provisions for unforeseen circumstances preventing performance
14. Termination: Grounds and procedures for ending the agreement, including notice requirements
15. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes
16. Notices: Methods and addresses for formal communications between parties
17. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Service Levels: Specific performance metrics and standards, used when quantifiable service levels are required
2. Change Control: Process for managing changes to scope or services, recommended for complex or long-term engagements
3. Insurance: Specific insurance requirements, important for high-risk services
4. Non-Competition: Restrictions on competitive activities, relevant for sensitive industries or specialized services
5. Assignment and Subcontracting: Rules for transferring rights or delegating services, important for larger projects
6. Compliance with Anti-Corruption Laws: Specific anti-corruption provisions, essential for international services or government-related work
7. Exit Management: Detailed transition provisions, important for critical or complex services
8. Shariah Compliance: Specific provisions ensuring compliance with Islamic principles, important for financial or investment-related services
9. Local Content Requirements: Provisions addressing Saudi Arabia's local content requirements, relevant for certain regulated industries
1. Schedule 1 - Service Description: Detailed specification of services, methodologies, and deliverables
2. Schedule 2 - Fees and Payment Schedule: Detailed breakdown of fees, payment milestones, and pricing mechanisms
3. Schedule 3 - Service Levels and KPIs: Specific performance metrics, measurement methods, and reporting requirements
4. Schedule 4 - Client Dependencies: Detailed list of client-provided resources, information, and access requirements
5. Schedule 5 - Key Personnel: Details of key team members and their roles
6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors and their scope of work
7. Appendix A - Required Forms and Templates: Standard forms for reporting, change requests, and other operational documents
8. Appendix B - Technical Requirements: Specific technical standards or requirements applicable to the services
9. Appendix C - Compliance Requirements: Detailed regulatory and compliance requirements specific to the services
Authors
Relevant legal definitions
Agreement
Applicable Laws
Business Day
Change Order
Client
Client Materials
Commencement Date
Confidential Information
Deliverables
Effective Date
Fees
Force Majeure Event
Good Industry Practice
Intellectual Property Rights
Key Personnel
Milestone
Notice
Personal Data
Project
Project Manager
Professional Services
Service Level Agreement
Service Provider
Services
Shariah Compliant
Specifications
Subcontractor
Term
Termination Date
Third Party
VAT
Work Product
Working Hours
Material Breach
Completion Certificate
Quality Standards
Acceptance Criteria
Progress Report
Commercial Registration
Approved Purpose
Background IP
Foreground IP
Dispute
Governing Law
Performance Standards
Contract Documents
Authority
Representatives
Claim
Indemnified Party
Loss
Applicable Laws
Business Day
Change Order
Client
Client Materials
Commencement Date
Confidential Information
Deliverables
Effective Date
Fees
Force Majeure Event
Good Industry Practice
Intellectual Property Rights
Key Personnel
Milestone
Notice
Personal Data
Project
Project Manager
Professional Services
Service Level Agreement
Service Provider
Services
Shariah Compliant
Specifications
Subcontractor
Term
Termination Date
Third Party
VAT
Work Product
Working Hours
Material Breach
Completion Certificate
Quality Standards
Acceptance Criteria
Progress Report
Commercial Registration
Approved Purpose
Background IP
Foreground IP
Dispute
Governing Law
Performance Standards
Contract Documents
Authority
Representatives
Claim
Indemnified Party
Loss
Clauses
Services
Appointment
Term
Service Provider Obligations
Client Obligations
Fees and Payment
Invoicing
Performance Standards
Quality Assurance
Key Personnel
Reporting
Intellectual Property
Confidentiality
Data Protection
Non-Competition
Non-Solicitation
Change Control
Force Majeure
Termination
Consequences of Termination
Assignment and Subcontracting
Liability and Indemnification
Insurance
Warranties
Representations
Dispute Resolution
Governing Law
Compliance
Anti-Corruption
Record Keeping
Audit Rights
Notices
Amendment
Waiver
Severability
Entire Agreement
Third Party Rights
Shariah Compliance
Local Content Requirements
Language
Counterparts
Authority
Relationship of Parties
Time of Essence
Survival
Force Majeure
Exit Management
Appointment
Term
Service Provider Obligations
Client Obligations
Fees and Payment
Invoicing
Performance Standards
Quality Assurance
Key Personnel
Reporting
Intellectual Property
Confidentiality
Data Protection
Non-Competition
Non-Solicitation
Change Control
Force Majeure
Termination
Consequences of Termination
Assignment and Subcontracting
Liability and Indemnification
Insurance
Warranties
Representations
Dispute Resolution
Governing Law
Compliance
Anti-Corruption
Record Keeping
Audit Rights
Notices
Amendment
Waiver
Severability
Entire Agreement
Third Party Rights
Shariah Compliance
Local Content Requirements
Language
Counterparts
Authority
Relationship of Parties
Time of Essence
Survival
Force Majeure
Exit Management
Relevant Industries
Information Technology
Management Consulting
Financial Services
Healthcare
Education
Engineering
Architecture
Legal Services
Accounting and Audit
Marketing and Advertising
Human Resources
Environmental Services
Real Estate
Construction
Energy and Utilities
Telecommunications
Relevant Teams
Legal
Procurement
Finance
Operations
Risk and Compliance
Human Resources
Information Technology
Commercial
Business Development
Project Management Office
Strategy
Vendor Management
Contract Administration
Relevant Roles
Legal Counsel
Procurement Manager
Contract Manager
Business Development Manager
Project Manager
Chief Financial Officer
Operations Director
Risk Manager
Compliance Officer
Human Resources Director
IT Director
Commercial Manager
Chief Executive Officer
Department Head
General Manager
Management Consultant
Professional Services Director
Strategy Manager
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