Works Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Works Contract

"I need a Works Contract for a large-scale residential development project in Riyadh, Saudi Arabia, with a contract value of SAR 500 million and completion date of March 2025, including provisions for phased completion and multiple subcontractors."

Document background
This Works Contract template is designed for use in construction projects within Saudi Arabia, providing a comprehensive framework for construction agreements that comply with Saudi law and Shariah principles. It is particularly suitable for both public and private sector construction projects, incorporating mandatory requirements from Saudi regulations including the Government Tenders and Procurement Law, Labor Law, and Saudi Building Code. The Works Contract covers essential aspects such as scope definition, payment terms, completion requirements, quality standards, and dispute resolution mechanisms, while addressing specific Saudi requirements such as Saudization obligations and local content requirements. This template can be customized based on project size, complexity, and specific sector requirements while maintaining compliance with Saudi legal framework.
Suggested Sections

1. Parties: Identification of the employer and contractor, including their full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the works contract, including project overview and basis for engagement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including reference to Shariah compliance

4. Scope of Works: Detailed description of the works to be performed, including general obligations of the contractor

5. Contract Price and Payment: Contract price, payment terms, variations, and VAT provisions in accordance with Saudi law

6. Time for Completion: Project timeline, completion dates, and provisions for extensions of time

7. Contractor's Obligations: Detailed responsibilities including compliance with Saudi regulations, safety requirements, and workforce management

8. Employer's Obligations: Responsibilities of the employer including site access, permits, and approvals

9. Quality and Standards: Quality requirements, compliance with Saudi Building Code, and inspection procedures

10. Health, Safety and Environment: HSE requirements in accordance with Saudi regulations

11. Insurance and Securities: Required insurance coverage and performance securities under Saudi law

12. Variations: Procedures for handling changes to the scope of works

13. Testing and Completion: Testing procedures, completion certificates, and handover requirements

14. Defects Liability: Defects notification period and remediation obligations

15. Force Majeure: Force majeure events and consequences under Saudi law

16. Suspension and Termination: Rights and procedures for suspension and termination

17. Dispute Resolution: Dispute resolution procedures in accordance with Saudi law

18. Governing Law: Confirmation of Saudi law and Shariah principles as governing law

Optional Sections

1. Design Obligations: Include when contractor has design responsibilities

2. Materials and Equipment Supply: Include when contractor is responsible for significant materials/equipment procurement

3. Subcontracting: Include when subcontracting is permitted and needs regulation

4. Intellectual Property: Include when works involve significant IP rights

5. Site Conditions: Include when site conditions pose special risks or requirements

6. Advance Payment: Include when advance payment is part of payment terms

7. Performance Tests: Include for projects requiring specific performance testing

8. Training and Technology Transfer: Include when contractor must provide training to employer's personnel

9. Saudization Requirements: Include detailed Saudization obligations for larger projects

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Project Schedule: Detailed program of works and key milestone dates

3. Schedule 3 - Payment Schedule: Breakdown of contract price and payment milestones

4. Schedule 4 - Site Information: Site details, access points, and existing conditions

5. Schedule 5 - Key Personnel: List of key personnel and their qualifications

6. Schedule 6 - Forms of Securities: Templates for performance bond and other securities

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage limits

8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements

9. Schedule 9 - Quality Assurance Plan: Quality management procedures and requirements

10. Schedule 10 - Forms of Certificates: Templates for various certificates including completion certificates

11. Appendix A - Employer's Requirements: Detailed employer's technical and commercial requirements

12. Appendix B - Contractor's Proposal: Contractor's technical and commercial proposal

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

Infrastructure Development

Real Estate

Oil & Gas

Industrial

Commercial Development

Residential Development

Healthcare Facilities

Educational Facilities

Transportation

Energy

Mining

Manufacturing

Telecommunications

Relevant Teams

Legal

Commercial

Procurement

Project Management

Construction

Engineering

Finance

Risk & Compliance

Operations

Health Safety & Environment

Quality Assurance

Business Development

Technical

Contract Administration

Relevant Roles

Chief Executive Officer

Project Director

Construction Manager

Contract Manager

Legal Counsel

Commercial Director

Procurement Manager

Technical Director

Site Manager

Quality Assurance Manager

HSE Manager

Finance Director

Risk Manager

Operations Manager

Engineering Manager

Quantity Surveyor

Project Control Manager

Compliance Officer

Business Development Manager

Cost Controller

Industries
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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