- What Is the Official Operations & Maintenance Contract in Saudi Arabia and When Should It Be Used?

The Operations & Maintenance (O&M) Contract is a standardized legal template issued by the Etimad platform in Saudi Arabia. It governs the long-term operation and maintenance of public facilities and services, ensuring efficiency, safety, and service continuity. You can read the full details and download the template from this article.

When Should the O&M Contract Be Used?

• When the project requires a long-term operational commitment, such as utilities, technical systems, or building services.
• For preventive and corrective maintenance that must be done on a regular basis.
• For projects where the quality of service is evaluated over time, not just a one-time delivery.

What Are the Key Clauses in the Contract?

1. Contract Duration

• Typically ranges from 1 to 5 years, renewable upon agreement.
• The scope includes operational targets and service uptime expectations.

2. Scope of Operations

• Includes daily management of HVAC, power, water, security systems, and more.
• Contractor must provide trained staff available around the clock.

3. Preventive & Corrective Maintenance

• Must submit a detailed maintenance schedule for approval.
• Immediate response required for emergency incidents, based on service level terms.

4. Performance Evaluation (KPIs)

• Regular assessment using key metrics: response time, number of failures, resolution quality.
• Penalties are enforced automatically when performance drops below required levels.

5. Penalties

• Delays or performance failures may incur penalties up to 10% of contract value.
• Includes poor service, repeated issues, or late maintenance.

6. Occupational Safety & Health

• Contractor must comply with all safety laws.
• Must provide protective equipment and emergency training to staff.

7. Guarantees and Insurance

• A performance guarantee of 5% of the contract value is mandatory.
• Additional insurance may be required for personnel, assets, and liability coverage.

How Is It Different from Other Contract Types?

Can the Template Be Modified?

Yes, provided:

• Both parties agree in writing.
• Official documentation of changes is issued.
• The changes remain compliant with procurement regulations.

Conclusion

The Operations & Maintenance Contract is ideal for public entities seeking to operate and sustain facilities efficiently. Understanding its clauses and implementing them correctly ensures quality service delivery, cost control, and reduced technical downtime.

📎 Click here to view the full article and download the PDF template