# 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](https://tendersalerts.com/articles/etimad-construction-contract-template-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?

TypePurposeEvaluation Based OnSupply ContractProcurement of goodsProduct delivery & testingO&M ContractOperating and maintaining assetsOngoing performance**Construction Contract**Building from scratchPhased 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.

📎 [Click here to explore and download the PDF version](https://tendersalerts.com/articles/etimad-construction-contract-template-pdf)