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Construction Management Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Management Contract

"I need a Construction Management Contract for a large-scale hospital development project in Riyadh, Saudi Arabia, with a project value of approximately SAR 500 million and construction scheduled to commence in March 2025; the contract should include specific provisions for medical facility requirements and phased handover."

Document background
The Construction Management Contract is a specialized agreement used when a project owner requires professional construction management services for their construction project in Saudi Arabia. This contract type is particularly relevant for complex or large-scale construction projects where specialized expertise is needed to manage multiple contractors, coordinate construction activities, and ensure project delivery according to specifications. The document comprehensively covers both pre-construction and construction phase services, detailing the Construction Manager's roles in project planning, cost control, schedule management, quality assurance, and contractor coordination. It is structured to comply with Saudi Arabian laws and regulations, including Sharia law principles, local building codes, and labor requirements. The agreement is commonly used in both private and public sector projects, particularly where sophisticated project management expertise is required to ensure successful project delivery.
Suggested Sections

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

2. Background: Context of the project, appointment of the Construction Manager, and brief description of the project scope

3. Definitions: Detailed definitions of terms used throughout the contract, including project-specific terminology

4. Scope of Services: Detailed description of the Construction Manager's services during both pre-construction and construction phases

5. Construction Manager's Obligations: Specific duties, responsibilities, and standard of care required from the Construction Manager

6. Employer's Obligations: Responsibilities of the Employer, including provision of information and timely decision-making

7. Project Timeline: Key dates, phases, and milestones for the project

8. Payment Terms: Fee structure, payment schedule, and mechanisms for payment in compliance with Saudi law

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

10. Subcontracting: Rules and procedures for appointment and management of subcontractors

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

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

13. Health and Safety: Safety requirements and responsibilities in accordance with Saudi regulations

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

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes in accordance with Saudi law

17. Governing Law: Confirmation of Saudi law as governing law and relevant jurisdictional provisions

Optional Sections

1. Pre-Construction Services: Detailed section for projects where the Construction Manager is involved in the design phase

2. Value Engineering: Section for projects requiring specific cost optimization services

3. Building Information Modeling (BIM): For projects utilizing BIM technology

4. Environmental Compliance: For projects with significant environmental considerations

5. Security Requirements: For projects with specific security needs or sensitive locations

6. Local Content Requirements: Detailed section on meeting Saudi Arabia's local content requirements for larger projects

7. Multiple Phase Implementation: For projects being delivered in multiple distinct phases

8. Liquidated Damages: When specific compensation for delay or performance failures is required

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of Construction Manager's services and deliverables

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

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

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

5. Schedule 5 - Required Insurance: Detailed insurance requirements and coverage levels

6. Schedule 6 - Project Specific Requirements: Technical specifications and project-specific requirements

7. Schedule 7 - Forms and Procedures: Standard forms for applications, certificates, and other project documentation

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

9. Appendix A - Project Drawings: List of relevant drawings and specifications

10. Appendix B - Permits and Approvals: List of required permits and responsible parties

11. Appendix C - Health and Safety Requirements: Detailed health and safety procedures and 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

Relevant legal definitions







































































Clauses




















































Relevant Industries

Commercial Real Estate

Residential Development

Industrial Construction

Infrastructure Development

Healthcare Facilities

Educational Facilities

Hospitality

Retail Development

Mixed-use Development

Religious Buildings

Government Facilities

Energy and Utilities

Transportation

Relevant Teams

Legal

Operations

Project Management

Commercial

Procurement

Risk Management

Finance

Compliance

Technical Services

Quality Assurance

Health and Safety

Relevant Roles

Project Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Risk Manager

Commercial Director

Development Director

Chief Executive Officer

Operations Director

Procurement Manager

Technical Director

Finance Director

Compliance Officer

Quality Assurance Manager

Health and Safety 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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