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Project Management Agreement (Construction) Template for Saudi Arabia

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Key Requirements PROMPT example:

Project Management Agreement (Construction)

"I need a Project Management Agreement (Construction) for a large-scale mixed-use development in Riyadh, Saudi Arabia, where we'll be appointing an international project management firm to oversee multiple contractors and ensure compliance with local regulations, with project completion targeted for March 2025."

Document background
The Project Management Agreement (Construction) is essential for construction projects in Saudi Arabia where professional project management services are required to oversee and coordinate construction activities. This agreement is typically used when a project owner needs to engage a specialized project management firm or individual to manage the construction process, ensure compliance with local regulations, and coordinate between various stakeholders. The document addresses key aspects such as scope of services, performance standards, reporting requirements, and payment terms, while ensuring compliance with Saudi Arabian law and Sharia principles. It includes specific provisions for local content requirements, governmental approvals, and industry standards applicable in Saudi Arabia. The agreement is particularly important for complex construction projects where professional project management is crucial for successful project delivery and regulatory compliance.
Suggested Sections

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

2. Background: Context of the agreement including project overview and parties' intentions

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

4. Appointment and Scope: Formal appointment of the Project Manager and detailed scope of services

5. Project Manager's Obligations: Comprehensive list of duties, responsibilities and deliverables

6. Client's Obligations: Client's responsibilities, including provision of information and approvals

7. Project Timeline: Project phases, milestones, and completion dates

8. Fees and Payment: Fee structure, payment terms, and invoicing procedures

9. Performance Standards: Required standards of performance and quality metrics

10. Reporting and Communications: Reporting requirements, meeting schedules, and communication protocols

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

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

13. Insurance and Liability: Insurance requirements and limitation of liability provisions

14. Termination: Termination rights and procedures

15. Confidentiality: Confidentiality obligations and information handling

16. Dispute Resolution: Dispute resolution procedures compliant with Saudi law

17. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Local Content Requirements: Specific section addressing Saudization and local content requirements when applicable

2. International Standards: Additional standards compliance section for international projects

3. BIM Requirements: Specific obligations regarding Building Information Modeling when required

4. Force Majeure: Detailed force majeure provisions for high-risk projects

5. Intellectual Property Rights: IP provisions when design or innovative methods are involved

6. Security Requirements: Additional security measures for sensitive or government projects

7. Environmental Impact: Detailed environmental requirements for environmentally sensitive projects

8. Quality Assurance: Specific quality control procedures for complex projects

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of project management services

2. Schedule 2 - Fee Schedule: Detailed fee breakdown, rates, and payment milestones

3. Schedule 3 - Project Program: Detailed project timeline and milestone dates

4. Schedule 4 - Key Personnel: Details of key project team members and their qualifications

5. Schedule 5 - Client's Requirements: Detailed technical and operational requirements

6. Schedule 6 - Reporting Templates: Standard formats for project reports and communications

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

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

9. Appendix A - Power of Attorney: Authorization documents for project representatives

10. Appendix B - Project Site Details: Site information and access 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

Retail Development

Hospitality and Tourism

Religious Facilities

Transportation

Energy and Utilities

Mixed-use Development

Relevant Teams

Legal

Operations

Project Management

Commercial

Procurement

Risk and Compliance

Technical Services

Business Development

Construction

Contract Administration

Relevant Roles

Project Director

Construction Manager

Project Manager

Contract Manager

Legal Counsel

Commercial Director

Development Manager

Technical Director

Risk Manager

Compliance Officer

Operations Manager

Chief Executive Officer

Construction Director

Procurement 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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