Finishing Works Contract template

Finishing Works Contract Template Compliant with the Laws of the Kingdom of Saudi Arabia

With the help and guidance of God, on this day __________, corresponding to / / AH, in the city of __________, it was agreed between: First Party (Employer): Mr __________, Saudi national, Civil Registry No. (__________) dated / / AH, address: city of __________, __________ District, __________ Street, Mobile (__________). Second Party (Contractor): __________ Contracting Establishment, Commercial Registration No. (__________) dated / / AH issued in __________, represented for signature by Mr __________, Mobile (__________). Preamble: Whereas the First Party owns the property located in the city of __________, __________ District, under title deed No. (__________) dated / / AH, has completed construction to shell (structural frame) level, and wishes to carry out the finishing works described in this contract and its annexes; and whereas the Second Party is a licensed establishment with sufficient experience; the two parties, having full legal capacity under Sharia and the law, have agreed as follows: Clause One: Preamble and Annexes The preamble, annexes, plans, bills of quantities and approved samples form an integral part of this contract. Clause Two: Scope of Finishing Works The Second Party undertakes to carry out the following finishing works in accordance with the specifications attached in Annex No. (1):

Item	Description of work	Specification / type	Approximate quantity	Included?
Plastering and rendering	....	....	.... m²	Yes / No
Tiling and marble	....	....	.... m²	Yes / No
Gypsum and ceilings	....	....	.... m²	Yes / No
Painting	....	....	.... m²	Yes / No
Electrical works	....	....	.... points	Yes / No
Plumbing and sanitary works	....	....	.... points	Yes / No
Doors and windows	....	....	.... units	Yes / No
Kitchens and cabinets	....	....	.... linear m	Yes / No
Air-conditioning works	....	....	.... units	Yes / No
....	....	....	....	Yes / No

Clause Three: Supply of Materials (with materials / without materials) One of the following two options shall be specified on signing, and the option not adopted shall be struck out:

• Option One — finishing with materials: The Second Party undertakes to supply all necessary materials in accordance with the specifications and samples approved in Annex No. (1), and the contract value includes the cost of materials and labour.
• Option Two — finishing without materials (labour only): The First Party undertakes to supply the materials to the site on the agreed dates, and the Second Party's obligation is limited to execution and labour. The Second Party shall not be liable for delay resulting from late supply of materials by the First Party.

Clause Four: Samples and Approval of Items The Second Party undertakes to submit samples of the main materials (tiles, paints, sanitary fittings, doors) before execution, and no item may be started before its sample has been approved in writing by the First Party. Any item executed differently from the approved sample shall be removed and re-executed at the Second Party's expense. Clause Five: Execution Period The execution period for the works is (__________) days/months commencing on / / AH, being the date on which the site is handed over to the Second Party free of obstructions and ready for the finishing works to begin. Clause Six: Contract Value and Method of Payment

• Total contract value: (__________) Saudi riyals, inclusive/exclusive of value added tax (to be specified on signing).
• Advance payment on signing: (__________) Saudi riyals, representing (____%).
• Interim payments according to actual completion percentages, released after inspection and approval by the First Party or his technical representative.
• A final payment of (____%) released after final handover and resolution of the snagging items.

Clause Seven: Delay Penalty If the Second Party exceeds the execution period without an acceptable excuse, an amount of (__________) Saudi riyals shall be deducted for each day of delay, not exceeding (____%) of the contract value. Clause Eight: Obligations

1. Obligations of the Second Party (Contractor):
   • To execute the works in accordance with the approved specifications and samples and good workmanship.
   • To provide trained labour and the necessary equipment, and to bear responsibility for their safety and the regularity of their iqamas.
   • To protect the parts of the property not covered by the contract, and to repair at its own expense any damage it causes to them.
   • To remove debris and clean the site on an ongoing basis and at final handover.
2. Obligations of the First Party (Employer):
   • To hand over the site on the agreed date, and to provide the electricity and water needed for execution.
   • To approve samples and release payments on time.

Clause Nine: Final Handover On completion of the works, a final inspection shall be carried out by the First Party or his technical representative, and a snagging list (if any) shall be drawn up, which the Second Party undertakes to address within (__________) days; a final handover report signed by both parties shall then be issued. Clause Ten: Warranty The Second Party warrants the executed finishing works for (__________) months from the date of final handover, during which it undertakes to repair, at its own expense, any defect arising from poor workmanship or poor-quality materials supplied by it, without prejudice to the warranty provisions of the Civil Transactions Law. Clause Eleven: Termination and Rescission The First Party may terminate the contract if the Second Party breaches its obligations or stops work for more than (__________) days without an acceptable excuse, after giving it written notice and a period to remedy the breach. Dues shall be settled on the basis of the actual completion percentage at the time of rescission. Clause Twelve: General Provisions

• This contract is governed by the laws of the Kingdom of Saudi Arabia, in particular the Civil Transactions Law.
• Disputes shall be settled amicably; failing that, they shall be referred to the competent judicial authority.
• All written correspondence and documented messages form part of this contract.
• This contract is executed in two signed copies, one held by each party to act upon.

Signatures: First Party: Name: __________ Signature: __________ Date: / / AH Second Party: Name: __________ Signature: __________ Date: / / AH

Note: Renovation Contracts

If the required works are a renovation of an existing property rather than finishing a new shell, the same template may be used, taking the following into account: add a clause for inspecting the existing condition and documenting it with photographs before starting; specify whether the works include treating structural damage (works that may require an engineering report); and set out each party's responsibility for hidden defects that appear after the old finishes are removed.