Standard Builders Contract

Standard Builders Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

"I need a Standard Builders Contract for a 50-unit residential compound development in Riyadh, with construction starting March 2025, that includes specific provisions for sustainable building practices and local content requirements in line with Saudi Vision 2030."

Document background

The Standard Builders Contract is a fundamental document used in Saudi Arabian construction projects to establish a legally binding agreement between project owners and contractors. This contract type is specifically tailored to comply with Saudi law, including Sharia principles and local building regulations, making it suitable for both private and public sector construction projects within the Kingdom. The document comprehensively addresses key aspects such as payment terms, project timelines, quality standards, and dispute resolution mechanisms, while incorporating specific requirements of Saudi municipalities and regulatory authorities. It is designed to protect the interests of all parties while ensuring smooth project execution in accordance with local construction practices and regulations. The contract includes provisions for Zakat considerations, local content requirements, and other specific Saudi Arabian commercial and regulatory requirements.

Suggested Sections

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

2. Background: Context of the agreement, including project overview and basis for engagement

3. Definitions: Detailed definitions of terms used throughout the contract, including technical construction terminology

4. Scope of Works: Detailed description of the construction works to be performed, including general obligations of the Contractor

5. Contract Price and Payment: Contract sum, payment schedule, advance payments, retention, and final account procedures

6. Project Timeline: Commencement date, completion date, project milestones, and provisions for extensions of time

7. Contractor's Obligations: Detailed responsibilities including workmanship, materials, safety, and compliance with laws and regulations

8. Employer's Obligations: Site access, permits, approvals, and other employer responsibilities

9. Quality and Inspection: Quality standards, testing procedures, and inspection rights

10. Variations: Procedures for handling changes to scope, pricing of variations, and approval process

11. Health and Safety: Safety requirements, protocols, and responsibilities in accordance with Saudi regulations

12. Insurance and Liability: Required insurance coverage, liability limitations, and indemnification provisions

13. Defects Liability: Defects notification period, remediation procedures, and warranties

14. Termination: Grounds for termination, procedures, and consequences

15. Force Majeure: Definition of force majeure events and their consequences

16. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction provisions compliant with Saudi law

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

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for higher-value contracts

2. Advance Payment: Terms for advance payment and associated guarantee, included when advance payment is required

3. Subcontracting: Rules and procedures for subcontracting, included when subcontracting is anticipated

4. Materials Storage: Provisions for storage and security of materials on-site, relevant for larger projects

5. Design Responsibility: Allocation of design responsibilities, included for design-build contracts

6. Archaeological Findings: Procedures for handling archaeological discoveries, relevant for projects in historically significant areas

7. Environmental Protection: Specific environmental requirements, included for environmentally sensitive projects

8. Local Content Requirements: Provisions for meeting Saudi local content requirements, relevant for government projects

Suggested Schedules

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

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

3. Schedule 3 - Project Timeline: Detailed program of works, including milestones and critical path

4. Schedule 4 - Key Personnel: List of key personnel from both parties with roles and responsibilities

5. Schedule 5 - Required Insurances: Detailed insurance requirements and minimum coverage amounts

6. Schedule 6 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

7. Schedule 7 - Health and Safety Requirements: Detailed safety procedures and requirements

8. Schedule 8 - Quality Assurance Plan: Quality control procedures and standards

9. Schedule 9 - Permits and Approvals: List of required permits and responsible parties

10. Appendix A - Site Plan and Drawings: Technical drawings and site layout plans

11. Appendix B - Material Specifications: Detailed specifications for construction materials

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Government and Public Works

Education (School/University Construction)

Healthcare (Hospital/Clinic Construction)

Retail Development

Hospitality

Religious Buildings

Sports and Recreation Facilities

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Finance

Operations

Risk and Compliance

Technical

Quality Assurance

Health and Safety

Business Development

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contract Manager

Legal Counsel

Project Manager

Site Engineer

Quantity Surveyor

Commercial Director

Procurement Manager

Risk Manager

Compliance Officer

Technical Director

Operations Manager

Finance Director

Chief Executive Officer

Development Manager

Construction Supervisor

Quality Control Manager

HSE Manager

Claims Manager

Find the exact document you need

Agreement With Builder For (Construction)

A Saudi Arabian law-governed agreement between property owner and builder establishing terms and conditions for construction works, incorporating local building regulations and Sharia Law principles.

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Let's create your Standard Builders Contract

Authors

Alex Denne

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