Service Of Work Contract Template for Saudi Arabia

The Service of Work Contract is a fundamental legal document used in Saudi Arabia when engaging external service providers or contractors for specific projects or ongoing services. This document type is essential for businesses operating in Saudi Arabia who need to formalize service arrangements while ensuring compliance with local laws and regulations. The contract must align with Saudi Labor Law, Shari'ah principles, and commercial regulations, including considerations for Saudization requirements where applicable. It typically includes detailed specifications of services, payment terms, performance standards, and dispute resolution mechanisms tailored to the Saudi legal system. The document is particularly crucial for protecting both parties' interests while maintaining compliance with local business practices and regulatory requirements.

1. Parties: Identification of the service provider and client, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the parties' intention to enter into the service arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the contract and rules of interpretation

4. Scope of Services: Detailed description of the services to be provided, including specific deliverables and performance standards

5. Term and Timeline: Duration of the contract, commencement date, and any renewal provisions

6. Payment Terms: Fees, payment schedule, invoicing requirements, and currency specifications

7. Obligations of Service Provider: Specific duties, responsibilities, and standards of performance required from the service provider

8. Client's Obligations: Responsibilities and obligations of the client, including provision of necessary information and access

9. Compliance with Laws: Commitment to comply with Saudi laws, including Labor Law and Shari'ah principles

10. Confidentiality: Provisions for protecting confidential information and trade secrets

11. Intellectual Property Rights: Ownership and usage rights of any intellectual property created or used during service provision

12. Liability and Indemnification: Extent of liability and indemnification obligations of both parties

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

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