Structural Works Contract (Labour and Materials) template

Structural Works Contract (Labour and Materials) Template Compliant with the Regulations of the Kingdom of Saudi Arabia

With God's help and guidance, on (day) __________, corresponding to / / AH, in the city of __________, an agreement was made between: First Party (Employer): Mr/Ms __________, National ID/Iqama No. (__________), National Address: __________, Mobile (__________). Second Party (Contractor): __________ Contracting Establishment/Company, Commercial Registration No. (__________), National Address: __________, represented by Mr/Ms __________, Mobile (__________). Preamble: The First Party owns the land located in the city of __________, __________ District, under title deed No. (__________) dated / / AH, and building permit No. (__________) dated / / AH, and wishes to carry out the structural works on it in accordance with the plans approved by __________ Engineering Consultants. Clause One: Scope of works The Second Party undertakes to carry out the structural works in full and to hand them over ready for finishing, including:

• Excavation, backfilling, compaction and removal of debris.
• Footings, ground beams, columns, beams and concrete slabs.
• Internal and external blockwork.
• Water tank, septic tank and insulation works: (included / not included).
• Staircase and site boundary walls: (included / not included).

The scope does not include: ........................ (State the exclusions expressly.) Clause Two: Area and pricing basis

• Total contracted area: (__________) m², divided as follows: ground floor (____) m², first floor (____) m², roof annex (____) m².
• Pricing basis: (price per square metre for structural works with materials = ________ riyals / lump sum).
• The value shall be adjusted if the area actually built differs from the contracted area by more than (____%), at the per-metre price above.

Clause Three: Material specifications — the core of the contract

Material	Agreed specification	Source/brand
Concrete — strength	........ (to be specified according to the plans and the structural report)	....
Reinforcing steel	........ (diameter and specification according to the plans)	....
Blocks	Size ........ and type ........	....
Cement	........	....
Insulation	........	....

No material may be substituted for another without the written consent of the First Party and the consultant, and any work carried out contrary to the specification shall be removed and redone at the Second Party's expense. Clause Four: Contract value and value added tax The total value is (__________) Saudi riyals, (inclusive / exclusive of) value added tax. The Second Party shall issue a compliant tax invoice for each payment if it is registered with the Zakat, Tax and Customs Authority (ZATCA). Clause Five: Payments by stage of completion

Stage	Percentage	Amount
Advance payment on signing and handover of the site	....%	........
On completion of footings and ground beams	....%	........
On casting the ground-floor slab	....%	........
On casting the final slab	....%	........
On completion of blockwork and handover	....%	........

No payment shall be released until the consultant has inspected the works and approved the percentage of completion in writing. (____%) of each payment shall be withheld as retention. Clause Six: Duration and delay penalty The period of performance is (__________) days from the date the site is handed over free of obstructions. In the event of delay without an acceptable excuse, a penalty of (________) riyals per day shall be payable, not exceeding (____%) of the contract value. No penalty shall be charged for delay caused by the First Party, by variations it ordered, or by circumstances beyond the parties' control. Clause Seven: Consultant and supervision The First Party shall appoint an engineering consultant to supervise the works, approve the stages and approve concrete pours. No concrete may be poured before the consultant has inspected the steel and formwork and approved them in writing. Clause Eight: Labour and safety The Second Party shall provide the labour and equipment, shall ensure that its workers' iqamas are in order and that it complies with labour and safety regulations, shall bear responsibility for any injury or damage arising from its works or its workers, and shall secure the site and remove debris on an ongoing basis. Clause Nine: Handover and warranty

• On completion, a provisional acceptance report shall be drawn up after the consultant's inspection, followed by final acceptance after the snags have been rectified within (____) days.
• The Second Party warrants the works for (__________) months from final acceptance against defects arising from workmanship or from materials it supplied.
• This is without prejudice to the warranty provisions of the Civil Transactions Law concerning anything affecting the safety and soundness of buildings.

Clause Ten: Termination The First Party may terminate in the event of a breach or a stoppage exceeding (____) days without excuse, after written notice and a cure period, and amounts due shall be settled on the basis of the actual percentage of completion approved by the consultant. Clause Eleven: General provisions

• This contract is governed by the laws of the Kingdom of Saudi Arabia, in particular the Civil Transactions Law as it relates to construction (muqawala) contracts.
• Disputes shall be settled amicably, failing which before the competent judicial authority.
• The plans, specifications, reports and written correspondence form part of this contract.
• Executed in two copies, each party holding one copy.

Signatures: Employer: Name: __________ Signature: __________ Date: / / AH Contractor: Name: __________ Signature: __________ Date: / / AH

Related templates

• Finishing Works Contract Template — for the next stage after the structural works.
• Construction Contract Template — for a comprehensive contract from start to handover.
• Subcontract Template — for subcontracting part of the works.