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The Contract Between Contractor And Owner is a fundamental legal document used in Saudi Arabia when engaging contractors for commercial, industrial, or infrastructure projects. This agreement type is essential for projects requiring professional contracting services, whether in construction, manufacturing, or other technical sectors. The document comprehensively addresses project scope, timeline, payment terms, and quality requirements while ensuring compliance with Saudi laws, including Sharia principles and modern commercial regulations. It's particularly relevant in the context of Saudi Vision 2030, which has increased focus on infrastructure development and private sector participation. The contract typically includes provisions for risk allocation, dispute resolution, and local content requirements, making it suitable for both domestic and international contractors operating in Saudi Arabia.

1. Parties: Identification of the Owner and Contractor, including their full legal names, addresses, and commercial registration details

2. Background: Context of the agreement, project overview, and basis for the contractual relationship

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical and legal terminology

4. Scope of Work: Detailed description of the works to be performed by the Contractor, including specifications and standards

5. Contract Price and Payment Terms: Agreement on price, payment schedule, invoicing procedures, and VAT treatment

6. Project Timeline: Project schedule, milestones, completion dates, and delay provisions

7. Contractor's Obligations: Detailed responsibilities including quality standards, safety requirements, and workforce management

8. Owner's Obligations: Owner's responsibilities including site access, permits, and approvals

9. Materials and Equipment: Requirements for materials, equipment standards, and procurement procedures

10. Quality Control and Inspection: Quality assurance procedures, testing requirements, and inspection rights

11. Variations and Changes: Process for handling changes to scope, price, or timeline

12. Warranties and Defects Liability: Warranty terms, defects liability period, and remediation procedures

13. Insurance and Indemnities: Required insurance coverage and mutual indemnification provisions

14. Force Majeure: Definition and handling of force majeure events

15. Termination: Grounds and procedures for contract termination by either party

16. Dispute Resolution: Procedures for dispute resolution, including Saudi law requirements

17. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction

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