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Construction Service Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Service Contract

"I need a Construction Service Contract under Saudi Arabian law for a 50-story commercial tower project in Riyadh, with a project value of 500 million SAR and construction period from March 2025 to December 2025, including specific provisions for sustainable building practices and LEED certification requirements."

Document background
The Construction Service Contract is a fundamental legal document used in Saudi Arabia when engaging contractors for construction projects. This contract type is essential for projects ranging from commercial buildings to infrastructure developments, ensuring compliance with Saudi Arabian laws and regulations. The document comprehensively addresses all aspects of the construction relationship, including scope of works, payment terms, timelines, quality standards, and regulatory compliance. It incorporates specific requirements from Saudi labor law, the Saudi Building Code, and local municipality regulations, while also addressing Islamic law principles applicable to commercial transactions. The Construction Service Contract is particularly important given Saudi Arabia's extensive construction sector and the complex regulatory framework governing construction activities in the Kingdom, including requirements for permits, professional qualifications, and safety standards.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, project overview, and purpose of the construction services

3. Definitions and Interpretation: Defined terms, rules of interpretation, and order of precedence of documents

4. Scope of Works: Detailed description of construction services, deliverables, and contractor's obligations

5. Contract Price and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and payment conditions

6. Project Timeline: Commencement date, completion date, milestones, and extension mechanisms

7. Contractor's Obligations: General and specific obligations, including compliance with laws, permits, and standards

8. Employer's Obligations: Site access, permits, approvals, and other client responsibilities

9. Materials and Workmanship: Quality standards, testing requirements, and acceptance criteria

10. Variations: Procedures for changes to scope, pricing, or timeline

11. Health, Safety and Environment: HSE requirements and compliance obligations

12. Warranties and Defects Liability: Warranty periods, remedial works, and defect resolution procedures

13. Insurance and Indemnities: Required insurance coverage and indemnification obligations

14. Force Majeure: Force majeure events and consequences

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

16. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction

17. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Financing Requirements: Used when project financing is involved, including lender requirements and step-in rights

2. Performance Security: When advance payments or performance bonds are required

3. Phasing and Sectional Completion: For projects with multiple phases or sections requiring separate completion

4. Local Content Requirements: When specific Saudi local content requirements apply

5. Intellectual Property Rights: When design or innovative construction methods are involved

6. Environmental Management: For projects with significant environmental impact

7. Site Security: For high-security or sensitive locations

8. Subcontracting: When subcontracting is permitted and requires detailed regulation

9. Testing and Commissioning: For projects requiring complex testing procedures

10. Training and Technology Transfer: When knowledge transfer to local staff is required

Suggested Schedules

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

2. Schedule 2 - Project Program: Detailed timeline, milestones, and critical path

3. Schedule 3 - Price Schedule: Detailed breakdown of prices, rates, 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 and Certificates: Template forms for notices, certificates, and approvals

7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements

8. Schedule 8 - Quality Assurance Requirements: Quality control procedures and standards

9. Schedule 9 - Performance Security Forms: Forms for bonds, guarantees, and warranties

10. Schedule 10 - Insurance Requirements: Detailed insurance requirements and coverage limits

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































































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Relevant Industries

Construction

Real Estate Development

Infrastructure

Oil & Gas

Manufacturing

Healthcare

Education

Retail

Hospitality

Industrial Development

Transportation

Energy

Mining

Religious Facilities

Government Infrastructure

Relevant Teams

Legal

Operations

Commercial

Procurement

Finance

Risk Management

Health Safety Environment

Project Management

Technical

Quality Assurance

Business Development

Compliance

Engineering

Construction Management

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Commercial Manager

Chief Executive Officer

Operations Director

Procurement Manager

Risk Manager

Finance Director

Technical Director

Site Supervisor

Quality Control Manager

HSE Manager

Business Development Manager

Quantity Surveyor

Project Engineer

Architectural Manager

Compliance Officer

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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