Conditions for signing a contracting contract

Conditions for signing a contracting contract

Currently, contracting contracts are among the most important contracts that entrepreneurs and project owners need to complete work by specialists in this field. Because the nature of these contracts requires a commitment to carry out certain tasks, the Civil Transactions Law stipulates the provisions of the contracting contract and its basic clauses: the obligations of the contractor and the employer, cases of termination of the contract, the subcontractor, and cases of termination of the contracting contract.

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What are contracting contracts in the Saudi system?

A contracting contract is a contract under which the contractor undertakes to make something or perform work for the employer in exchange for a wage agreed upon in the contract. It is a contract that is binding on both parties, as the contractor undertakes to perform the work required of him and the employer undertakes to pay the contractor the wage after the work is completed.

What are the most important items in a contracting contract form?

A contracting contract requires the approval of all parties to the terms of the contract, as the contracting contract form must include the following main elements:

• Data of the parties to a contracting contract
• The contract records the personal data of both the contractor and the employer (such as name, city, national address, and contact numbers)
• Work to be done
• The work required of the contractor must be explained in detail and in clear language.
• Agreed wage
• It is the amount of money that the employer is obligated to pay to the contractor and agree on the payment and repayment mechanism, whether in the form of specific payments on specific dates or the full amount.
• Time period for completing the work
• The contractor must determine the duration of completion of the agreed-upon work, divide the completion process into stages, and provide the employer with a periodic report on the progress of the work.
• Penal conditions
• Agree on the penalty clause in the event of delay or breach by one of the parties of its obligations in the contract.
• Litigation Authority
• Determine the party to be resorted to in the event of a dispute between the two parties, such as arbitration, reconciliation, or the judiciary.

What are the types of contracting work?

Contracting work varies according to the nature of the work required to be completed by the contractor, such as:

• Construction and building works (such as a bone contractor contract)
• Engineering and finishing works.
• Plumbing and electrical works.
• Carpentry and painting works.
• Tile work and more.

What are the contractor’s obligations in a contracting contract?

• Providing the necessary materials for work in accordance with the specifications and conditions agreed upon in a contractor’s contract, if it is agreed that the contractor is committed to providing these materials.
• Preserving and using the materials used in the work and taking into account the technical principles in his work if these materials are provided by the employer.
• The contractor shall bear the expenses of the devices or tools used in the work unless they agree otherwise.
• The contractor is obligated to implement the contract and deliver it within the specified period and in accordance with the terms agreed upon in the contracting contract.

What are the employer’s obligations in a contractor’s contract?

• The employer is obligated to fulfill the agreed upon wage within the dates agreed upon in the contracting contract form.
• The employer must receive the work from the contractor after completing its implementation.
• The employer is obligated to pay an amount in excess of the agreed-upon wage if he is directly notified by the contractor of an increase in work costs over the estimated amount to perform the work. However, if this increase is significant, the employer has the right not to pay the excess amount and to terminate the contract between him and the contractor.

What are the consequences of a contractor breaching his obligations in a contracting contract?

The employer has the right to warn the contractor and ask him to perform his work in the event that the contractor fails to fulfill his obligations agreed upon in the contract. A specific period of time is set for completing the work. However, if the contractor continues to fail to fulfill his obligations and does not perform the work required of him, the employer has the right to:

• Hiring another contractor to complete the work at the expense of the previous contractor.
• Termination of a contractor’s contract for failure to comply with the agreed terms of the contract.

What is subcontracting?

The Civil Transactions Law defines subcontracting as an agreement between the primary contractor and another contractor (subcontractor) that the other contractor will fulfill all or part of the primary contractor’s obligations.

The primary contractor has the right to hire a subcontractor to complete the work except in the following cases:

• If it violates the executive rules and regulations that prohibit subcontracting in certain cases or requires certain licenses.
• If a contracting contract concluded between the primary contractor and the employer explicitly stipulates that the work will not be assigned to a subcontractor.
• If the nature of the work requires certain expertise and skills that are only available to the primary contractor.
• If the employer chooses the specific primary contractor based on his reputation and work experience.

When does the contracting contract expire?

When does the contracting contract expire?

A contracting contract ends in the following cases:

• The contractor has completed the work correctly and in accordance with the terms and specifications agreed upon in the contract.
• Termination of the contracting contract due to one of the parties’ breach of its obligations in the contract.

Criteria for selecting a lawyer from Abdul Majeed Al Rashid Law Firm and Legal Consultations in contracting cases

Contracting contracts require a specialized public defender who understands the nature of the workings of these contracts. Therefore, some important criteria must be met when choosing a suitable lawyer:

• Experience in drafting the terms of contracting contracts and knowledge of the precise details that must be in the contract.
• The lawyer must have a good reputation through reviews from his previous clients.
• The lawyer must be a specialist in the field of contracting and have knowledge and awareness of the regulations that govern it.
• Negotiation and settlement skill to resolve disputes with minimal losses.
• The appropriate cost of legal services provided by a lawyer.