Real estate lawyer in Riyadh and Tabuk – Usus Law Firm

Most building disputes between an owner and a contractor start with an unclear contract: what exactly is to be built? Are materials the contractor's or the owner's responsibility? When are payments due? What happens if the work is late? Below is a general construction contract template for Saudi Arabia that you can copy. Once adapted, it suits shell (structural) works and finishing works, with or without materials, and we explain the clauses that protect both sides.

Construction contract template (general form)

Contracts and court filings in Saudi Arabia are in Arabic, and if a dispute reaches court the Arabic text is what the court reads. Use the Arabic version below as the contract you sign; the English translation after it is for understanding only, and where the two differ the Arabic text prevails.

عقد مقاولة حُرر بتاريخ [ ] بين: الطرف الأول (المالك): [الاسم]، رقم الهوية [ ]، الجوال [ ]. الطرف الثاني (المقاول): [اسم المؤسسة]، السجل التجاري [ ]، ويمثلها [ ]، الجوال [ ]. البند الأول — موضوع العقد: يلتزم الطرف الثاني بتنفيذ [أعمال العظم / التشطيب / عظم وتشطيب] لمبنى [ ] على الأرض الواقعة في [الحي / المدينة] بموجب الصك رقم [ ] ورخصة البناء رقم [ ]، وفق المخططات المعتمدة وجدول الكميات والمواصفات المرفقة، وهي جزء من هذا العقد. البند الثاني — المواد: [يورّد المقاول جميع المواد / يورّد المالك المواد ويقدم المقاول العمالة والمعدات]، وتكون المواد مطابقة للمواصفات المرفقة. البند الثالث — قيمة العقد: [ ] ريال، [شاملة / غير شاملة] ضريبة القيمة المضافة. البند الرابع — الدفعات: 1. دفعة مقدمة [ ] ريال عند التوقيع. 2. [ ] ريال عند إنجاز [القواعد والميدة]. 3. [ ] ريال عند إنجاز [الهيكل / الأسقف]. 4. [ ] ريال عند إنجاز [ ]. 5. الدفعة الأخيرة [ ] ريال عند الاستلام النهائي. وتُصرف كل دفعة بعد توقيع محضر إنجاز المرحلة من الطرفين. البند الخامس — المدة: تبدأ من [ ] وتنتهي في [ ]، ولا يُمدد إلا بملحق مكتوب أو لأسباب خارجة عن إرادة المقاول يثبتها كتابة. البند السادس — التأخير: إذا تأخر المقاول عن الموعد دون عذر مقبول، يُخصم [ ] ريال عن كل [يوم / أسبوع] تأخير، بحد أقصى [ ]% من قيمة العقد. البند السابع — التعديلات: أي إضافة أو تعديل على الأعمال يكون بملحق مكتوب يحدد قيمته ومدته. البند الثامن — الضمان: يضمن المقاول الأعمال المنفذة من العيوب [مدة ( ) من تاريخ الاستلام]، دون إخلال بما يقرره النظام من ضمان. البند التاسع — السلامة والمخالفات: يتحمل المقاول مسؤولية سلامة العمالة والموقع والمخالفات الناشئة عن عمله. البند العاشر — الإنهاء: للمالك فسخ العقد إذا توقف المقاول عن العمل [ ] يوماً دون عذر بعد إنذاره كتابة، ويُحاسب المقاول على ما نفذه فعلاً وفق محضر حصر. البند الحادي عشر — حل النزاع: يُحل ودياً، فإن تعذر فأمام المحكمة المختصة في [المدينة]. الطرف الأول: [الاسم والتوقيع] الطرف الثاني: [الاسم والتوقيع والختم]

Construction Contract Made on [ ] between: First Party (Owner): [Name], ID No. [ ], Mobile [ ]. Second Party (Contractor): [Establishment name], Commercial Registration [ ], represented by [ ], Mobile [ ]. Clause 1 — Subject of the contract: The Second Party undertakes to carry out [shell works / finishing works / shell and finishing works] for a [ ] building on the land located in [district / city] under title deed No. [ ] and building permit No. [ ], in accordance with the approved drawings and the attached bill of quantities and specifications, which form part of this contract. Clause 2 — Materials: [The Contractor supplies all materials / The Owner supplies the materials and the Contractor provides labour and equipment], and the materials shall conform to the attached specifications. Clause 3 — Contract value: SAR [ ], [inclusive / exclusive] of value added tax. Clause 4 — Payments: 1. Advance payment of SAR [ ] on signing. 2. SAR [ ] on completion of [foundations and ground beams]. 3. SAR [ ] on completion of [the structure / the roofs]. 4. SAR [ ] on completion of [ ]. 5. Final payment of SAR [ ] on final handover. Each payment is released after both parties sign a completion report for the stage. Clause 5 — Duration: Starts on [ ] and ends on [ ], and may be extended only by a written addendum or for reasons beyond the Contractor's control that the Contractor proves in writing. Clause 6 — Delay: If the Contractor is late without an acceptable excuse, SAR [ ] shall be deducted for each [day / week] of delay, up to a maximum of [ ]% of the contract value. Clause 7 — Variations: Any addition to or change in the works shall be made by a written addendum stating its value and duration. Clause 8 — Warranty: The Contractor warrants the completed works against defects [for a period of ( ) from the handover date], without prejudice to any warranty required by law. Clause 9 — Safety and violations: The Contractor is responsible for the safety of the workers and the site and for violations arising from its work. Clause 10 — Termination: The Owner may terminate the contract if the Contractor stops work for [ ] days without excuse after a written warning, and the Contractor shall be paid for the work actually completed according to a survey report. Clause 11 — Disputes: Disputes shall be settled amicably, failing which before the competent court in [city]. First Party: [Name and signature] Second Party: [Name, signature and stamp]

The clauses that protect you

For the ownerFor the contractor
Drawings, bill of quantities and specifications attached and signedA precise scope, so extra work is not demanded for free
Payments tied to completion stages documented in signed reportsAn advance payment that covers starting the work
A delay penalty with a reasonable capAn extension of time when the owner is late with payments or materials
A warranty on the works after handoverA handover report that fixes when the warranty starts and liability ends

See also common commercial contract mistakes and the Civil Transactions Law, which sets the rules for construction (muqawala) contracts.

Frequently asked questions

The contractor took payments and then stopped work. What can I do?

Warn the contractor in writing, document what was completed with a survey report or an engineer's report, then claim the difference or compensation as the contract provides. See our legal notice template.

Is a contract without attached drawings enough?

It is much weaker in a dispute, because the disagreement is usually about "what exactly was required". Attach the drawings and specifications and sign them.

Need a construction contract drafted for your project?

The team at Usus Law Firm drafts construction contracts and handles their disputes as part of its contract drafting and real estate cases work, in Riyadh and Tabuk, and advises in English.

This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.

Request a quick consultation

Leave your name and mobile number, and a lawyer from our Riyadh or Tabuk office will call you during working hours. We advise in English.