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Project Commission Agreement

Project Commission Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Project Commission Agreement

"I need a Project Commission Agreement for a solar power plant construction project in Riyadh, with a planned completion date of June 2025, that includes specific provisions for technology transfer and local content requirements under Saudi Vision 2030."

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Document background
The Project Commission Agreement is a vital legal instrument used in Saudi Arabia when an organization (commissioner) engages another party (contractor) to execute a specific project. This document is essential for projects requiring detailed scope definition, milestone-based deliverables, and structured payment arrangements. It ensures compliance with Saudi laws, including the Government Tenders and Procurement Law, Commercial Court Law, and relevant sector-specific regulations. The agreement is particularly important in the context of Saudi Vision 2030, often incorporating local content requirements and technology transfer provisions. It provides a comprehensive framework for project execution, risk allocation, quality standards, and dispute resolution while adhering to Sharia principles and Saudi commercial practices.
Suggested Sections

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

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of the project deliverables, objectives, and requirements

5. Project Timeline: Project schedule, milestones, and completion dates

6. Commission and Payment Terms: Payment structure, amounts, and schedule of payments

7. Obligations of the Commissioner: Responsibilities and duties of the party commissioning the project

8. Obligations of the Contractor: Responsibilities and duties of the party executing the project

9. Quality Standards: Required quality levels and applicable standards

10. Reporting and Communication: Communication protocols and reporting requirements

11. Warranties and Representations: Warranties provided by both parties

12. Intellectual Property Rights: Ownership and rights to project deliverables and materials

13. Confidentiality: Protection of confidential information

14. Term and Termination: Duration of agreement and termination provisions

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

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

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

18. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Insurance Requirements: Specific insurance requirements - include when project involves significant risks or regulatory requirements

2. Performance Bonds: Requirements for performance bonds - include for large-scale projects

3. Local Content Requirements: Saudi local content requirements - include when project falls under Saudi Vision 2030 requirements

4. Environmental Compliance: Environmental standards and compliance - include for projects with environmental impact

5. Health and Safety Requirements: Specific health and safety protocols - include for construction or industrial projects

6. Subcontracting: Terms for subcontracting - include when subcontractors are likely to be used

7. Change Order Procedures: Procedures for managing changes - include for complex projects

8. Technology Transfer: Terms for technology transfer - include when project involves technical knowledge transfer

9. Training Requirements: Requirements for training local staff - include when required by Saudi regulations or project scope

Suggested Schedules

1. Schedule 1 - Detailed Scope of Work: Comprehensive technical specifications and requirements

2. Schedule 2 - Project Timeline: Detailed project schedule with milestones and deadlines

3. Schedule 3 - Payment Schedule: Detailed breakdown of payments, including amounts and triggering events

4. Schedule 4 - Key Personnel: List of key personnel from both parties and their roles

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

6. Schedule 6 - Required Permits and Approvals: List of required regulatory permits and approvals

7. Schedule 7 - Performance Metrics: Detailed performance indicators and measurement criteria

8. Appendix A - Required Forms and Templates: Standard forms for project documentation

9. Appendix B - Site Access Procedures: Procedures for accessing project sites if applicable

10. Appendix C - Quality Control Procedures: Detailed quality control and assurance procedures

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Approved Subcontractors
Background IP
Business Day
Change Order
Commencement Date
Commissioning Fee
Commissioner
Completion Certificate
Completion Date
Confidential Information
Contractor
Contractor Personnel
Defects Liability Period
Deliverables
Dispute
Effective Date
Force Majeure Event
Good Industry Practice
Governing Law
Intellectual Property Rights
Key Personnel
Local Content Requirements
Milestone
Payment Schedule
Performance Bond
Project
Project Manager
Project Plan
Project Schedule
Project Site
Quality Standards
Regulatory Approvals
Representatives
Scope of Work
Services
Specifications
Technical Standards
Term
Third Party
Variation
Warranty Period
Work Product
Zakat
Clauses
Interpretation
Appointment
Scope of Work
Project Timeline
Payment Terms
Warranties and Representations
Obligations
Performance Standards
Quality Control
Progress Monitoring
Reporting Requirements
Change Management
Intellectual Property
Confidentiality
Data Protection
Local Content Requirements
Health and Safety
Environmental Compliance
Insurance
Liability and Indemnification
Force Majeure
Termination
Assignment and Subcontracting
Dispute Resolution
Governing Law
Notices
Amendments
Entire Agreement
Severability
Compliance with Laws
Anti-corruption
Documentation Requirements
Site Access
Material and Equipment
Testing and Acceptance
Defects Liability
Performance Security
Risk Allocation
Regulatory Compliance
Relevant Industries

Construction

Infrastructure Development

Information Technology

Energy and Utilities

Manufacturing

Healthcare

Education

Telecommunications

Transportation

Real Estate Development

Industrial Development

Mining and Resources

Environmental Services

Professional Services

Relevant Teams

Legal

Procurement

Project Management

Commercial

Operations

Finance

Compliance

Risk Management

Technical Services

Quality Assurance

Business Development

Executive Leadership

Relevant Roles

Project Director

Contract Manager

Legal Counsel

Project Manager

Commercial Director

Procurement Manager

Technical Director

Operations Manager

Finance Director

Compliance Officer

Risk Manager

Business Development Manager

Technical Consultant

Quality Assurance Manager

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

General Counsel

Industries
Basic Law of Governance (Royal Order No. A/90): The constitutional law establishing Sharia as the foundation of Saudi law, which affects all contracts and commercial dealings
Government Tenders and Procurement Law (Royal Decree No. M/128): Regulates procurement procedures, bidding processes, and contract awards for projects in Saudi Arabia
Commercial Court Law (Royal Decree No. M/32): Governs commercial transactions and business contracts, including project agreements
Saudi Labor Law (Royal Decree No. M/51): Regulates employment relationships and worker rights in project execution
Engineering Professional Practice Law: Governs engineering practices and professional standards in project execution
Foreign Investment Law (Royal Decree No. M/1): Regulates foreign investment and participation in Saudi projects
Value Added Tax Law (Royal Decree No. M/113): Governs VAT obligations in project contracts and payments
Anti-Commercial Fraud Law (Royal Decree No. M/19): Ensures transparency and prevents fraudulent practices in commercial agreements
Commercial Agencies Law (Royal Decree No. M/11): Relevant if the project involves commercial agency relationships or representation
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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