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Prime Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Prime Contract

"I need a Prime Contract for a solar power plant construction project in Riyadh, with a project value of 500M SAR and completion date of March 2025, including specific provisions for local content requirements and technology transfer obligations."

Document background
The Prime Contract serves as the fundamental agreement for major projects in Saudi Arabia, establishing the principal relationship between the project owner/employer and the main contractor. This document is essential for large-scale commercial, industrial, or infrastructure projects where direct contractual relationships and clear accountability are crucial. It must comply with Saudi Arabian law, including Sharia principles, the Saudi Commercial Court Law, and relevant sector-specific regulations. The contract typically includes comprehensive provisions for project execution, payment mechanisms, risk allocation, and dispute resolution, while incorporating local content requirements and Saudi business practices. Used primarily for high-value projects, the Prime Contract forms the basis for all subsequent project documentation and subcontractor relationships, making it a critical document for project success in the Saudi Arabian market.
Suggested Sections

1. Bismillah: Opening Islamic phrase required in Saudi contracts

2. Parties: Identification and details of the contracting parties, including registration numbers and addresses

3. Background: Context and purpose of the agreement, including any relevant history or relationships

4. Definitions: Defined terms used throughout the agreement

5. Scope of Work: Detailed description of the works or services to be performed

6. Contract Price and Payment Terms: Price, payment schedule, invoicing requirements, and currency provisions

7. Timeline and Completion: Project schedule, milestones, and completion criteria

8. Contractor Obligations: Primary responsibilities and obligations of the contractor

9. Client Obligations: Primary responsibilities and obligations of the client

10. Quality and Standards: Required quality standards, specifications, and compliance requirements

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

12. Performance Security: Requirements for performance bonds or guarantees

13. Insurance: Required insurance coverage and limits

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

15. Force Majeure: Provisions for unforeseen circumstances preventing performance

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes, including Saudi law requirements

18. Governing Law: Confirmation of Saudi law application and Sharia compliance

19. Notices: Communication procedures and contact details

20. General Provisions: Standard boilerplate clauses including assignment, waiver, and severability

Optional Sections

1. Intellectual Property Rights: Required when the contract involves creation or use of intellectual property

2. Confidentiality: Detailed confidentiality provisions when sensitive information is involved

3. Local Content Requirements: Required when project must meet Saudi Arabia's local content requirements

4. Environmental Compliance: Required for projects with environmental impact considerations

5. Health and Safety: Required for construction or industrial projects

6. Security Requirements: Required for projects involving sensitive locations or information

7. Training and Knowledge Transfer: Required when local workforce development is part of the scope

8. Warranty: Required for contracts involving goods or construction

9. Step-in Rights: Required for critical infrastructure or essential service contracts

10. Subcontracting: Required when subcontractors will be engaged

Suggested Schedules

1. Schedule 1 - Detailed Scope of Work: Technical specifications and detailed work requirements

2. Schedule 2 - Price Breakdown: Detailed pricing, rates, and payment milestones

3. Schedule 3 - Project Timeline: Detailed project schedule and milestone dates

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

5. Schedule 5 - Performance Standards: Detailed quality and performance requirements

6. Schedule 6 - Forms of Bonds and Guarantees: Templates for required security instruments

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage limits

8. Schedule 8 - HSE Requirements: Health, safety, and environmental requirements

9. Schedule 9 - Required Documents: List of documents to be submitted during contract execution

10. Schedule 10 - Change Order Procedures: Detailed procedures for handling variations

11. Appendix A - Site Information: Details about project location and site conditions

12. Appendix B - Technical Drawings: Reference drawings and technical specifications

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

Infrastructure Development

Oil & Gas

Manufacturing

Technology & Telecommunications

Defense

Healthcare

Transportation

Energy & Utilities

Mining & Minerals

Relevant Teams

Legal

Commercial

Operations

Project Management

Procurement

Finance

Risk & Compliance

Technical

Business Development

Construction Management

Relevant Roles

Chief Executive Officer

Managing Director

Project Director

Commercial Director

Legal Counsel

Contract Manager

Project Manager

Business Development Manager

Operations Director

Risk Manager

Procurement Manager

Technical Director

Finance Director

Compliance Officer

Construction 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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