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Tripartite Agreement (Construction) Template for Saudi Arabia

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Key Requirements PROMPT example:

Tripartite Agreement (Construction)

"I need a Tripartite Agreement (Construction) for a large-scale solar power plant project in Riyadh, Saudi Arabia, involving a government entity as the employer, an international contractor, and a local technical consultant, with special attention to local content requirements and Sharia-compliant financing provisions."

Document background
The Tripartite Agreement (Construction) is a specialized legal instrument used in Saudi Arabian construction projects where three parties need to establish a formal contractual relationship. It is particularly relevant for complex construction projects requiring coordination between an employer/owner, main contractor, and either a specialized subcontractor or consultant. The agreement must comply with Saudi Arabian law, including the Government Tenders and Procurement Law, Saudi Building Code, and Sharia principles. This document typically includes detailed provisions for project execution, payment mechanisms, quality control, dispute resolution, and risk allocation. It is essential for projects requiring clear delineation of responsibilities and coordination between multiple parties, especially in sectors such as infrastructure development, commercial construction, and government projects.
Suggested Sections

1. Parties: Identification and details of all three parties: typically the Employer, Main Contractor, and Subcontractor/Consultant

2. Background: Context of the agreement, project overview, and relationship between the parties

3. Definitions and Interpretation: Key terms, interpretation rules, and governing language provisions

4. Scope of Works: Detailed description of works to be performed by each party

5. Contract Price and Payment Terms: Payment obligations, mechanisms, and conditions for each party

6. Project Timeline: Project schedule, milestones, and completion dates

7. Parties' Obligations: Specific responsibilities and obligations of each party

8. Quality and Standards: Required quality standards, compliance with Saudi Building Code and regulations

9. Supervision and Approval Process: Project supervision hierarchy and approval mechanisms

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

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

12. Insurance and Liability: Insurance requirements and liability allocation between parties

13. Default and Termination: Events of default, remedies, and termination procedures

14. Dispute Resolution: Dispute resolution mechanisms compliant with Saudi law

15. Force Majeure: Force majeure events and their consequences

16. Confidentiality: Confidentiality obligations and permitted disclosures

17. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction provisions

Optional Sections

1. Performance Security: Required when parties need to provide performance bonds or guarantees

2. Islamic Finance Compliance: Required when project involves Islamic financing arrangements

3. Local Content Requirements: Required for projects subject to Saudi Vision 2030 localization requirements

4. Intellectual Property Rights: Required when design or technology transfer is involved

5. Step-in Rights: Required when lenders or project owners need intervention rights

6. Environmental Impact: Required for projects with significant environmental implications

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

8. Anti-corruption Provisions: Required for international parties or public sector involvement

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and work breakdown structure

2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and critical path

3. Schedule 3 - Payment Schedule: Detailed payment terms, milestones, and procedures

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

5. Schedule 5 - Technical Standards: Applicable technical standards and specifications

6. Schedule 6 - Forms of Certificates: Templates for various certificates and notices

7. Schedule 7 - Performance Security Forms: Forms of guarantees and performance bonds

8. Schedule 8 - Site Information: Site details, access requirements, and conditions

9. Schedule 9 - Required Insurances: Details of required insurance coverage

10. Appendix A - Project Drawings: Technical drawings and designs

11. Appendix B - Quality Assurance Plan: Quality management procedures and requirements

12. Appendix C - HSE Requirements: Detailed health, safety, and environmental 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



























































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Relevant Industries

Construction

Infrastructure

Real Estate

Energy

Industrial Development

Commercial Development

Healthcare Construction

Education Infrastructure

Transportation

Utilities

Mining

Oil & Gas

Renewable Energy

Public Sector Development

Private Sector Development

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Finance

Operations

Risk Management

Compliance

Technical

Engineering

Development

Quality Assurance

Health Safety Environment

Relevant Roles

Project Director

Construction Manager

Legal Counsel

Contract Manager

Project Manager

Chief Executive Officer

Commercial Director

Technical Director

Risk Manager

Procurement Manager

Finance Director

Operations Manager

Site Manager

Quality Assurance Manager

HSE Manager

Engineering Manager

Development Director

Compliance Officer

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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