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Builder Collaboration Agreement for Saudi Arabia

Builder Collaboration Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the framework for collaboration between multiple builders or contractors on construction projects. The document outlines the terms and conditions for joint working arrangements, risk sharing, profit distribution, and operational procedures while ensuring compliance with Saudi Building Code and Sharia principles. It includes detailed provisions for project governance, performance standards, dispute resolution mechanisms, and specific requirements for operating in the Saudi Arabian construction sector, including Saudization requirements and local regulatory compliance.

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Builder Collaboration Agreement

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What is a Builder Collaboration Agreement?

The Builder Collaboration Agreement is essential for construction projects in Saudi Arabia where multiple builders or contractors need to work together effectively. This document is particularly relevant in the context of Saudi Arabia's Vision 2030 initiatives and the increasing complexity of construction projects in the region. The agreement ensures that all parties understand their roles, responsibilities, and obligations while maintaining compliance with Saudi law, including the Saudi Building Code, Commercial Law, and Sharia principles. It typically includes provisions for risk sharing, profit distribution, project governance, quality standards, and dispute resolution mechanisms. The Builder Collaboration Agreement is especially important for large-scale projects where coordinated effort between multiple specialized contractors is required, and where clear delineation of responsibilities and liabilities is essential for project success. The document also addresses specific Saudi Arabian requirements such as Saudization quotas, local content requirements, and environmental regulations.

What sections should be included in a Builder Collaboration Agreement?

1. Parties: Identification of all participating builders, contractors, and other key stakeholders

2. Background: Context of the collaboration, project overview, and general intent of the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation principles, including Sharia compliance statement

4. Scope of Collaboration: Detailed description of the collaboration scope, project objectives, and deliverables

5. Roles and Responsibilities: Specific duties and responsibilities of each party in the collaboration

6. Project Governance: Management structure, decision-making processes, and reporting requirements

7. Financial Arrangements: Payment terms, profit sharing, cost allocation, and financial management procedures

8. Performance Standards: Quality standards, KPIs, and compliance with Saudi Building Code requirements

9. Risk Allocation: Distribution of risks among parties and risk management procedures

10. Insurance and Liability: Required insurance coverage and liability limitations

11. Intellectual Property Rights: Ownership and usage rights of project-related intellectual property

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement, renewal terms, and termination conditions

14. Force Majeure: Handling of unforeseen circumstances and force majeure events

15. Dispute Resolution: Procedures for resolving disputes, including Saudi arbitration provisions

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

What sections are optional to include in a Builder Collaboration Agreement?

1. Saudization Requirements: Specific section on meeting Saudi workforce requirements, used when project falls under specific Saudization thresholds

2. Environmental Compliance: Detailed environmental obligations, required for projects with significant environmental impact

3. Technology and Systems: Specifications for shared technology platforms and systems, used in digitally integrated projects

4. Security Requirements: Special security measures and clearances, needed for sensitive or government-related projects

5. Community Engagement: Requirements for community relations and local impact, relevant for large public-facing projects

6. Innovation and Research: Provisions for research and development activities, used in projects involving new construction technologies

7. Training and Knowledge Transfer: Requirements for skill development and knowledge sharing, important for complex technical projects

What schedules should be included in a Builder Collaboration Agreement?

1. Schedule 1 - Project Specifications: Detailed technical specifications and project requirements

2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and delivery dates

3. Schedule 3 - Financial Model: Detailed breakdown of costs, profit sharing, and payment schedules

4. Schedule 4 - Resource Allocation: Specification of human resources, equipment, and materials to be provided by each party

5. Schedule 5 - Quality Management Plan: Quality assurance procedures and standards

6. Schedule 6 - HSE Requirements: Health, safety, and environmental requirements and procedures

7. Schedule 7 - Communication Protocol: Procedures for project communications and reporting

8. Schedule 8 - Key Personnel: List of key personnel from each party and their roles

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

10. Appendix B - Insurance Requirements: Detailed insurance specifications and certificates

11. Appendix C - Compliance Checklist: Checklist of regulatory and legal compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



















































Clauses









































Relevant Industries

Construction

Real Estate Development

Infrastructure

Energy and Utilities

Industrial Development

Commercial Property

Residential Development

Healthcare Facilities

Education Facilities

Transportation

Hospitality

Retail Development

Religious Buildings

Sports and Entertainment Facilities

Relevant Teams

Legal

Operations

Commercial

Project Management

Construction

Procurement

Finance

Risk and Compliance

Technical Services

Quality Assurance

Health Safety and Environment

Business Development

Engineering

Contract Administration

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Commercial Director

Operations Manager

Chief Executive Officer

Project Manager

Site Supervisor

Risk Manager

Compliance Officer

Technical Director

Procurement Manager

Finance Director

Business Development Manager

Quality Assurance Manager

HSE Manager

Engineering Manager

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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