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Operating Service Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Operating Service Agreement

"I need an Operating Service Agreement for a waste management facility in Riyadh, where a local service provider will operate our recycling plant starting March 2025, with specific focus on environmental compliance and Saudization requirements."

Document background
The Operating Service Agreement is a critical document used when a company engages an external provider to manage and operate specific facilities, equipment, or processes. This agreement type is particularly important in Saudi Arabia, where it must align with both civil law requirements and Sharia principles. The document is commonly used in industrial, infrastructure, and service sectors, particularly where specialized operational expertise is required. It includes detailed provisions for service delivery, performance standards, risk allocation, and compliance with local regulations, including Saudization requirements and necessary permits. The agreement is structured to protect both parties' interests while ensuring operational efficiency and regulatory compliance in the Saudi Arabian business environment.
Suggested Sections

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

2. Background: Context of the agreement, relationship between parties, and purpose of the operating services

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Services: Detailed description of operating services to be provided, including specific obligations and deliverables

5. Term and Commencement: Duration of the agreement, effective date, and conditions for commencement

6. Service Provider's Obligations: Comprehensive list of service provider's duties, responsibilities, and performance standards

7. Client's Obligations: Responsibilities and obligations of the client, including provision of access, information, and resources

8. Fees and Payment Terms: Detailed fee structure, payment schedules, invoicing requirements, and VAT considerations

9. Performance Standards: Key performance indicators, service levels, and quality standards

10. Personnel and Subcontracting: Requirements for personnel, Saudization requirements, and rules regarding subcontracting

11. Compliance and Permits: Obligations to comply with Saudi laws, obtain necessary permits and licenses

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

13. Insurance: Required insurance coverage and minimum insurance requirements

14. Confidentiality: Protection of confidential information and trade secrets

15. Termination: Grounds for termination, termination process, and consequences of termination

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

17. Dispute Resolution: Process for resolving disputes, including Saudi court jurisdiction or arbitration

18. Governing Law: Specification of Saudi law as governing law and incorporation of Sharia principles

19. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Intellectual Property Rights: Required when services involve creation or use of intellectual property

2. Data Protection: Required when services involve processing of personal or sensitive data

3. Change Control: Needed for complex services where scope changes are likely

4. Training and Knowledge Transfer: Important when service includes training of client's personnel

5. Emergency Response: Required for critical operations or high-risk services

6. Exit Management: Important for complex or long-term services requiring transition planning

7. Environmental Compliance: Required for services with environmental impact

8. Security Requirements: Needed when services involve access to secure facilities or systems

9. Local Content Requirements: Required when specific Saudi local content obligations apply

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed description of all services, methodologies, and deliverables

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

3. Schedule 3 - Service Levels: Specific performance metrics, KPIs, and measurement criteria

4. Schedule 4 - Personnel: Key personnel, qualifications, and Saudization requirements

5. Schedule 5 - Client Equipment and Facilities: List of client-provided equipment, facilities, and resources

6. Schedule 6 - Required Permits and Licenses: List of necessary regulatory approvals and permits

7. Schedule 7 - Form of Reports: Templates and requirements for operational reports

8. Schedule 8 - Business Continuity Plan: Procedures for ensuring service continuity

9. Appendix A - Health and Safety Requirements: Specific health and safety standards and procedures

10. Appendix B - Technical Specifications: Detailed technical requirements and standards

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

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Relevant Industries

Oil & Gas

Manufacturing

Industrial Processing

Utilities

Infrastructure

Healthcare

Transportation

Telecommunications

Mining

Petrochemicals

Real Estate

Facility Management

Energy

Water Treatment

Waste Management

Relevant Teams

Legal

Operations

Procurement

Compliance

Risk Management

Commercial

Technical Services

Health Safety Environment

Quality Assurance

Facility Management

Contract Administration

Project Management

Relevant Roles

Operations Manager

Facility Manager

Contract Manager

Legal Counsel

Procurement Manager

Technical Director

Chief Operating Officer

Compliance Officer

Project Manager

Risk Manager

Commercial Manager

General Manager

HSE Manager

Quality Assurance Manager

Operations Director

Maintenance 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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