- What Is the Official Construction Contract in Saudi Arabia and When Should It Be Used?
The construction contract is the official legal template used for public infrastructure and building projects commissioned by Saudi government entities. Issued by the Etimad platform, it sets the technical, legal, and procedural framework for execution. You can view and download the official version by visiting our in-depth article on the Etimad Construction Contract PDF.
When Should the Construction Contract Be Used?
- When a government entity needs to build or expand physical infrastructure.
- Applicable to projects that involve materials, labor, equipment, and execution phases.
- Examples: public buildings, road construction, paving works, water treatment plants.
What Are the Key Clauses in the Contract?
1. Project Duration
- Defined based on project size.
- Contractor must submit a detailed timeline broken into execution phases.
2. Quality and Technical Standards
- Contractor must adhere to the Saudi Building Code and official specifications.
- The government entity reserves the right to reject non-compliant work.
3. Local Content Requirements
- A specific percentage of materials and labor must be sourced locally.
- Aligned with the Expenditure and Project Efficiency Authority (EXPRO) directives.
4. Subcontracting
- Allowed up to 30%, but subcontractors must be officially approved.
- The main contractor retains full legal responsibility.
5. Penalties
- Delay fines of 1% per week, up to 10% of the contract value.
- Penalties also apply for technical non-compliance.
6. Guarantees
- 5% performance guarantee of the contract value.
- 12-month post-delivery defect liability (warranty) period.
7. Modifications
- Scope and quantities may be adjusted if formally documented and within the contract budget.
Can the Template Be Modified?
Yes, under the following conditions:
- Formal mutual agreement.
- Documentation in an official annex.
- No violation of the Government Tenders and Procurement Law.
How Does It Differ from Other Contracts?
| Type | Purpose | Evaluation Based On |
|---|---|---|
| Supply Contract | Procurement of goods | Product delivery & testing |
| O&M Contract | Operating and maintaining assets | Ongoing performance |
| Construction Contract | Building from scratch | Phased execution progress |
Conclusion
The Etimad Construction Contract is the standard legal framework for public infrastructure in Saudi Arabia. It defines responsibilities, ensures technical compliance, and enforces accountability from planning to final delivery.
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Related Links
- ◾ Bidding in Government Projects
- ◾ Classification Certificates for Tenders
- ◾ Construction Tenders in Saudi Arabia
- ◾ Data Collection and Analysis in Tender Evaluations
- ◾ Are You Eligible to Enter a Tender?
- ◾ construction contract
- ◾ contract templates pdf
- ◾ Preparing Tender Approval Documents
- ◾ Etimad Subscription Fee
- ◾ Local Content Preference
- ◾ operations and maintenance contract
- ◾ Pre-registration in Etimad Tenders
- ◾ supply contract
- ◾ Organizing Unified Procurement via Endorsing Competitions
- ◾ Localization of Saudi Industries
- ◾ Excellence in Government Tender Offers
- ◾ Qualifying for Government Tenders
- ◾ Tender Application Guide
- ◾ What is the benefit of the Etimad Platform?
- ◾ Comprehensive Guide for Government Tenders
- ◾ Legal Compliance in Competition Accreditation
- ◾ Avoid These Mistakes
- ◾ Government Bidding System
- ◾ Etimad Platform for New Companies
- ◾ Pricing Services and Purchases
- ◾ Successful Bids
- ◾ Types of Tenders
- ◾ Regulations and Laws
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- ◾ Preparing Technical Proposals
- ◾ Tenders and Investment
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- ◾ Electronic and Traditional Tendering
- ◾ tender browsing - Etimad
- ◾ Bid Evaluation in Tenders
- ◾ Modify Bid After Submission
- ◾ Pre-Qualification – Etimad
- ◾ Grievance Escalation – Etimad
- ◾ Tender Grievance – Etimad
- ◾ Finding Open Tenders
- ◾ Improving Winning Chances
- ◾ Bank Guarantees – Etimad Platform
- ◾ Participating in Government Tenders
- ◾ Purchase Tender Docs – Etimad
- ◾ Bid Extension – Etimad
- ◾ Direct Purchase Response – Etimad
- ◾ Post-Qualification - Etimad
- ◾ Tender Inquiries – Etimad Platform
- ◾ Bid Submission – Etimad Platform
- ◾ Financial Claims – Etimad Platform
- ◾ Tender Award Results – Etimad
- ◾ Criteria for Selecting the Winning Bid
- ◾ Obtaining Government Tenders
- ◾ Withdrawing from Direct Purchase Invitation - Etimad
- ◾ Bid Withdrawal – Etimad
- ◾ Objecting to Tender Results
- ◾ Common Mistakes
- ◾ Documents Required for Tenders
- ◾ Steps for Submitting an Offer in a Tender
- ◾ construction contract
- ◾ contract templates
- ◾ operations and maintenance
- ◾ supply contract
- ◾ What are Tenders?
- ◾ Etimad Platform for Government Entities
- ◾ Etimad Platform for Individuals
- ◾ Etimad Platform and Government Tenders
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