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Simple Building Contract for Saudi Arabia

Simple Building Contract Template for Saudi Arabia

A standardized construction agreement governed by Saudi Arabian law, designed for straightforward building projects of small to medium complexity. This contract establishes the legal framework between an employer and a contractor for construction works, incorporating local building regulations, Shari'ah law principles, and Saudi labor requirements. The document addresses key aspects including scope of works, payment terms, timeline, quality standards, and dispute resolution mechanisms while ensuring compliance with Saudi Arabian construction industry requirements and municipal regulations.

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What is a Simple Building Contract?

The Simple Building Contract is specifically designed for construction projects in Saudi Arabia where a straightforward, comprehensive agreement is needed between an employer and a contractor. It is most suitable for small to medium-sized construction projects where the design is complete or substantially complete before construction begins. This document incorporates essential elements of Saudi Arabian law, including Shari'ah principles, building codes, and labor regulations, while providing clear structures for project execution, payment mechanisms, and dispute resolution. The contract is typically used for projects such as residential buildings, small commercial developments, or industrial facilities where the construction requirements are well-defined and the risk profile is relatively standard. It includes provisions for local content requirements and environmental compliance, making it particularly suitable for projects that need to align with Saudi Vision 2030 development goals.

What sections should be included in a Simple Building Contract?

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

2. Background: Brief context of the construction project and the parties' intention to enter into this agreement

3. Definitions: Key terms used throughout the contract, including technical construction terms, payment terms, and project-specific definitions

4. Scope of Works: Detailed description of the construction work to be performed by the Contractor

5. Contract Price and Payment Terms: The agreed price, payment schedule, and mechanisms for handling variations

6. Duration and Programme: Project timeline, completion date, and any intermediate milestones

7. Contractor's Obligations: Main responsibilities including quality of work, compliance with laws, and safety requirements

8. Employer's Obligations: Key responsibilities including site access, permits, and information provision

9. Materials and Workmanship: Quality standards, approval processes, and testing requirements

10. Variations: Procedures for handling changes to the scope of work

11. Delay and Extension of Time: Provisions for handling delays and extension requests

12. Defects Liability: Contractor's responsibilities for rectifying defects and the defects liability period

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

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

15. Dispute Resolution: Procedures for resolving disputes, including reference to Shari'ah courts

What sections are optional to include in a Simple Building Contract?

1. Performance Security: Requirements for performance bonds or guarantees, optional for smaller projects

2. Advance Payment: Terms for advance payment and its security, used when advance payment is agreed

3. Subcontracting: Rules for appointing subcontractors, included when subcontracting is permitted

4. Force Majeure: Provisions for handling unforeseen events, recommended for longer-term projects

5. Intellectual Property: IP rights provisions, needed when design elements are involved

6. Environmental Compliance: Specific environmental obligations, required for environmentally sensitive projects

7. Local Content Requirements: Provisions for meeting Saudi local content requirements, needed for larger projects

What schedules should be included in a Simple Building Contract?

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

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract price and bill of quantities

3. Schedule 3 - Programme: Detailed construction programme and milestone dates

4. Schedule 4 - Site Information: Site details, access points, and existing conditions

5. Schedule 5 - Forms: Standard forms for payment applications, variations, and certificates

6. Schedule 6 - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts

7. Schedule 7 - Key Personnel: List of key personnel from both parties and their roles

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































Clauses






























Relevant Industries

Construction

Real Estate

Infrastructure

Residential Development

Commercial Property

Industrial Development

Property Management

Architecture

Engineering

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Operations

Risk & Compliance

Property Development

Technical Services

Contract Administration

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Commercial Manager

Property Developer

Procurement Manager

Site Manager

Development Director

Head of Construction

Chief Operating Officer

Risk Manager

Compliance Officer

Project Control 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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