Residential Construction Management Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Residential Construction Management Agreement

"I need a Residential Construction Management Agreement for a luxury villa complex project in Riyadh, Saudi Arabia, where our firm will manage multiple contractors and coordinate with the municipality for a planned completion in March 2025."

Document background
The Residential Construction Management Agreement is essential for property owners and developers undertaking residential construction projects in Saudi Arabia. This document is typically used when engaging professional construction management services for residential developments, ranging from single luxury villas to multiple-unit residential complexes. It incorporates crucial elements required by Saudi Arabian law, including Shariah compliance, local building codes, and municipality regulations. The agreement outlines comprehensive project management responsibilities, including planning, coordination, supervision, quality control, and cost management. It addresses specific Saudi Arabian requirements such as local content rules, worker accommodation standards, and religious observance considerations. The document is structured to protect all parties' interests while ensuring smooth project execution within the unique context of Saudi Arabia's construction sector.
Suggested Sections

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

2. Background: Context of the agreement, including project overview and parties' intentions

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

4. Scope of Services: Detailed description of construction management services to be provided

5. Construction Manager's Obligations: Comprehensive list of CM's duties, responsibilities, and deliverables

6. Owner's Obligations: Owner's responsibilities, including provision of information, access, and approvals

7. Project Schedule: Timeline, milestones, and completion dates

8. Compensation and Payment: Fee structure, payment terms, and payment schedule

9. Changes and Variations: Procedures for handling changes to scope, schedule, or budget

10. Quality Control: Quality standards, inspection procedures, and compliance requirements

11. Health and Safety: Safety requirements and procedures complying with Saudi regulations

12. Subcontracting: Terms governing the appointment and management of subcontractors

13. Insurance and Indemnity: Required insurance coverage and indemnification provisions

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

15. Dispute Resolution: Procedures for resolving disputes, including reference to Saudi law

16. General Provisions: Standard legal provisions including notices, governing law, and entire agreement

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, if required by project size/complexity

2. Environmental Compliance: Specific environmental requirements, needed for projects with significant environmental impact

3. Local Content Requirements: Provisions addressing Saudi Arabia's local content requirements, if applicable

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in challenging construction environments

5. Technology and BIM: Requirements for Building Information Modeling and other technology, for complex projects

6. Religious Observance: Provisions for prayer times and religious holidays, if affecting project schedule

7. Handover and Defects: Detailed handover procedures and defects liability period, for larger projects

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of construction management services

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Project Schedule: Detailed project timeline and milestones

4. Schedule 4 - Key Personnel: List of key personnel and their roles/responsibilities

5. Schedule 5 - Required Insurance: Details of required insurance coverage

6. Schedule 6 - Project Specifications: Technical specifications and requirements

7. Schedule 7 - Forms and Procedures: Standard forms for variations, applications for payment, etc.

8. Schedule 8 - Quality Assurance Plan: Detailed quality control procedures and requirements

9. Appendix A - Site Plan: Drawings and plans of the construction site

10. Appendix B - Permits and Approvals: List of required permits and regulatory approvals

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

Real Estate

Property Development

Architecture

Engineering

Project Management

Construction Management

Residential Development

Infrastructure

Urban Development

Relevant Teams

Legal

Operations

Construction

Project Management

Risk Management

Compliance

Property Development

Procurement

Technical Services

Quality Assurance

Health and Safety

Contract Administration

Relevant Roles

Construction Manager

Project Director

Development Manager

Property Developer

Construction Director

Contract Manager

Legal Counsel

Risk Manager

Compliance Officer

Operations Manager

Site Manager

Quality Control Manager

Health and Safety Manager

Cost Controller

Procurement Manager

Technical Director

Chief Engineer

Industries
Saudi Civil Code: Governs general contract principles, formation, and enforcement of agreements in Saudi Arabia, based on Shariah law principles
Saudi Building Code (SBC): Comprehensive regulations establishing technical requirements and standards for building design, construction methods, and safety requirements
Saudi Labor Law (Royal Decree No. M/51): Regulates employment relationships, working conditions, and rights of workers in construction projects
Construction Works License Regulations: Municipal regulations governing construction permits, approvals, and licensing requirements for residential construction projects
Environmental Protection Standards: Regulations by the Presidency of Meteorology and Environment (PME) concerning environmental impact and protection during construction
Saudi Contractors Classification Law: Classifies contractors and establishes requirements for their operation in construction projects
Engineering Professional Practice Regulations: Governs the practice of engineering and construction management professionals in Saudi Arabia
Municipality Construction Safety Standards: Local regulations governing construction site safety, worker protection, and public safety measures
Housing Ministry Regulations: Specific regulations related to residential construction standards and requirements issued by the Ministry of Housing
Zoning Laws and Land Use Regulations: Municipal regulations governing land use, building height, setbacks, and other construction parameters for residential properties
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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