Site Development Agreement Template for Saudi Arabia

The Site Development Agreement is a crucial document used in Saudi Arabia when a landowner grants development rights to a developer for the construction or improvement of a specific site. This agreement is particularly important in the context of Saudi Arabia's rapidly evolving real estate sector and the kingdom's Vision 2030 development initiatives. It provides a comprehensive framework that addresses all aspects of the development process, from initial site access to project completion, while ensuring compliance with Saudi building codes, environmental regulations, and Shariah principles. The document typically includes detailed provisions for obtaining necessary permits, meeting technical specifications, managing payments, and handling disputes. It's designed to protect both parties' interests while facilitating efficient project execution within Saudi Arabia's unique legal and regulatory environment.

1. Parties: Identifies and provides full details of the developer and landowner/employer, including their legal status and authority to enter into the agreement

2. Background: Sets out the context of the agreement, including brief description of the site, development intention, and confirmation of ownership/authority

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles, including Shariah compliance declaration

4. Project Scope: Detailed description of the development work to be undertaken, including general obligations of the developer

5. Site Access and Conditions: Terms governing the developer's access to and use of the site, including site investigation rights

6. Development Program: Timeline for the development, including key milestones, completion dates, and extension mechanisms

7. Development Standards: Quality standards, compliance with Saudi Building Code, and other applicable technical requirements

8. Permits and Approvals: Requirements for obtaining and maintaining necessary governmental approvals and permits

9. Payment Terms: Payment structure, amounts, timing, and mechanisms, ensuring compliance with Saudi banking regulations

10. Testing and Inspection: Procedures for testing works and materials, including third-party inspection requirements

11. Completion and Handover: Process for achieving completion, addressing defects, and project handover

12. Warranties and Defects: Developer's warranties and obligations regarding defect rectification

13. Insurance and Liability: Required insurance coverage and allocation of risks between parties

14. Force Majeure: Events constituting force majeure and consequences thereof

15. Termination: Grounds for termination and consequences, including payment and site restoration obligations

16. Dispute Resolution: Mechanisms for dispute resolution, including Saudi law requirements for arbitration/courts

17. Governing Law: Confirmation of Saudi law as governing law and Shariah compliance