Overview
We review the payment schedule for construction phases against the project's actual risks rather than accepting a standard template, since a payment schedule not proportionate to actual completion risk exposes the paying party to greater risk than necessary.
Execution quality disputes often need an independent engineering opinion alongside the legal opinion to determine liability accurately, and we coordinate this with independent experts when needed.
Regulatory Basis
Construction contracts fall under general contract provisions in Saudi law, with consideration for required building and operating permits from the competent municipal authorities.
How We Review Construction Contracts
We carefully review delay and compensation terms, since they determine the regulatory rights available to the affected party if the contractor falls behind the agreed schedule.
We also review the defects liability clause and its time period, a clause that determines who bears responsibility for defects appearing after project handover.
Who Needs This Service
A developer contracting with a builder to execute a project who needs a construction contract clearly defining responsibilities.
A party facing a delay in project delivery who needs their legal position assessed regarding a compensation claim.
From projects we've reviewed in the Eastern Province specifically, change orders during execution are a recurring source of dispute when the contract lacks a clear mechanism for pricing and approving them in advance, leaving the contractor executing additional work without a documented agreement on its cost, while the owner later disputes a financial claim they see as never formally agreed to before execution.
Additional Considerations
When the project is government-related or part of a public-private partnership, the accompanying contracts connect with our public projects and PPP service.
For execution quality disputes needing an independent engineering opinion, we coordinate with our expert testimony service to support the position with documented technical evidence.
Common Questions
Who bears responsibility for defects appearing after project handover?
This is determined by the defects liability clause in the construction contract and its time period, a clause we make sure is clearly drafted before any construction contract is signed.
How do we handle change orders during execution?
The mechanism for resolving disputes tied to change orders deserves careful drafting from the start to avoid a dispute over additional cost later.