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CONSULTANCY SERVICES AGREEMENT
PROJECT :________________________
AGREEMENT DATED:
______________
BETWEEN
ARAB NATIONAL BANK, the Owner
Represented by: Engr. Saleh Al Zunaidi
Deputy General Manager
Head of Premises & Administration Services Department
AND
__________________________________________________
Lic. No. ____ – C.R. _____
P.O. Box _____ Riyadh _____
Tel.: _______ Fax: ______
It is the intention of the owner to contract the services of the Consultant for
Design and Construction Supervision Services for ANB – _____________________ and
hereinafter referred as project: based on the following:
‐Owner’s letter of intent (confirmation) Ref. No. PreAdm/_____/___ dated __ of
____________.
The Owner and the consultant agree as set forth below:
ARTICLE ١: CONTRACT TERMS
The consultant shall provide all professional services for the project in accordance with
the terms and conditions of the agreement.
ARTICLE ٢: SCOPE OF SERVICES
٢.١ DESIGN SERVICE
The consultant will carry out the design work and necessary requirement for the project
based on the detailed listing of all internal and external design requirements and
components provided by the Owner.
The Consultant will produce construction documentation and drawings for the building
and site work.
The design services shall be carried out according to the following states:
٢.١.١ STAGE ١: Site Survey & Schematic Design
This stage involved the review and analysis of the Owner’s requirement and
development of program. Conceptual and schematic design for the proposed project.
The following will be prepared for the Owner’s approval and comments:
Existing building drawings
Site Plan
Floor Plan
Elevations and Sections
Colored perspectives (one aerial and one ground level)
Preliminary construction cost estimate
٢.١.٢a STAGE ٢: Design Development
Upon final approval of schematic design by the Owner, the design of the building, site
and landscaping will be further developed in more detailed manner. During this stage,
all engineering systems will be drawn schematically like mechanical and electrical
system and will be coordinated with structural systems and architectural details.
The following drawings and documents are produced of design development stage:
١. Drawings
Site plan
Preliminary landscaping plan
Floor plan, Elevations and Sections
Structural framing plan
Mechanical systems schematics
Electrical systems schematics
٢. Updated Construction Cost Estimate
٣. Outline Specifications
٤. Conduct Soil Investigation report (consultant will do the preliminary number of bore
holes & prepare outline for soil investigation: cost of expeditionary bore holes
drilling is included in this agreement).
٥. Conduct site survey. Consultant will make sure that the site property line is the same
with the land documents handed by the Owner.
٦. Consultant should make sure that the approved construction drawings are matching
with the one stamped by the municipality, the contractor & the consultant as well.
All major design and technical decisions are made during this stage so that next stage
can proceed further without delay due to lack of decision regarding and scope of work.
٢.١.٢b Tender Documents
During this stage, drawings, specifications and other particulars are completed and
submitted to the Owner for review and approval.
The Documents shall include the following:
١. Civil
Site grading/setting out plan
Site sections and details
٢. Landscape
Soft/hard landscape plans
Planting materials schedule and details
٣. Architectural
Roof, floor plans and details
Exterior elevations and wall sections
Schedules of room finishes, doors and windows
Stairs and section with details
Details of doors, windows and miscellaneous details
Reflected ceiling plans
٤. Interior Design / Furniture
Furniture plans
Reflected ceiling details
Floor pattern plans
Signage plans
Main Lobby and entrance elevations
Miscellaneous details
٥. Structural
Foundation plans
Floor and roof framing plans of all levels
Schedules of structural members
Sections and details
٦. Mechanical (Plumbing & HVAC)
Plans of all areas and levels (in single line) showing HVAC, plumbing, ducts,
plumbing drainage fire fighting and piping, and irrigation system.
Equipment schedules, elevations, sections and details.
Site utilities plans and details.
٧. Electrical
Plans of all level showing power, lighting, communications, fire alarm, security,
computer network systems, panel locations and details.
Fixture and panel board schedules.
Site electrical plans and details.
٨. Others
Tender drawings (after incorporating all Owner’s comments on the working
drawing)
Specifications
Bill of Quantities
Final Construction Cost Estimate
Conditions of Contract
٢.١.٣ STAGE ٣: Tendering & Tenders Evaluation
The Consultant will investigate and pre‐qualify bidders (٨ bidders max.) for the project
and submit a list of qualified contractors to the Owner for approval.
Upon agreement on qualified contractor, the consultant will issue the Tender
Documents to the selected contractors (Tenders) (maximum of ٨ contractors)
and respond to queries from the Tenders as needed.
The Consultant will receive and record tenders from the Bidders, then conducts a
detailed analysis on up to three of the best lowest tenders. The analysis report
and recommendations will be reviewed with the Owner for the concurrence.
Upon agreement, the consultant will assist the Owner with negotiations with the
recommended contractor or contractors.
Upon agreement among concerned parties, the consultant will arrange for
contract signing among parties.
٢.١.٤ The Owner may terminate this agreement, at its sole discretion, by giving notice
in writing to the consultants after the end of the Tendering and tenders
evaluation Services before the issuing the Notice to proceed for the Supervising
of the project construction.
٢.١.٥ Notes:
١. All documents shall be in English language.
٢. A١ size shall be used for the drawing sheet.
٣. Scale ١:٢٠٠ shall be used for the site plan, scale ١:١٠٠ shall be used for the
floor plans.
٤. Two (٢) sets prints of drawing and documents shall be submitted at end of
each stage. Ten (١٠) sets prints of final tendering documents shall be
submitted at the completion of the design services.
٢.٢ SUPERVISION SERVICES
The consultant upon issuing the notice to proceed will carry out the supervision of the
project construction. Hereunder is the supervision approach:
٢.٢.١ General
The appointed Resident Engineer and his site staff of various disciplines will carry out
the following items.
a. Confirm position of site and Scope of works.
b. Check contractual insurance, bonds, bank guarantees, etc.
c. Establish contact with Contractor to explain contractual procedures.
d. Review project documents.
This procedure enables the consultant’s staff to become familiar with the project.
٢.٢.٢ Pre‐Construction Conference & Staff
a. The appointed contractor will receive a notice to proceed and an official site
handover made in a pre‐construction meeting.
b. The contractor will be required to supply:
١) Program of work in bar char from with labor figures.
٢) Material procurement schedule: long lead items to be shown and
delivery and submittal schedule.
٣) Cash flow diagram.
c. The progress payments and measurement system of the consultant will be
explained to the Contractor: payment dates and minimum amounts to be
discussed.
d. The Consultant’s inspection and control procedure and inspection form will be
explained and given to the Contractor.
e. The Consultant’s “approval of submittal” procedure will be explained to the
Contractor.
f. The Consultant’s requirements for concrete, steel and other basic materials for
construction will be explained to the Contractor.
g. The Consultant will confirm that the contractor has a full set of drawings,
specification, bill of quantities, and other contract documents.
٢.٢.٣ Construction Phase
Construction progress will be mentioned and controlled as follows:
a. Submittals of shop drawings, material, and samples by contractor will be
recorded, checked and reviewed to assess their performance with the contract
specifications and drawings.
b. Consultant will confirm that all materials have been tested by the Contractor will
to conform to project requirements.
c. Standard inspection of site works be carried out by various disciplines under the
Consultant inception procedure.
d. The contractor will be noticed in writing of bad workmanship and advised as to
the methods of corrections to attain the required standard.
e. The Contractor’s construction schedules, bar charts, and target dates will be
under the Consultants constant assessment.
f. Weekly site meeting will be held to discuss problem & progress.
g. There will be progress measurement of site work and certificates of payment will
be issued on this basis.
h. Installation of equipment will be constantly checked.
i. The Owner will be given monthly progress report on the project and on any
other relevant items occurring on the project within the month.
٢.٢.٤ Completion Phase
On the construction completion and before handover and entry into the
Maintenance period, the following supervisory work will be carried out:
a. Operational commissioning test on all equipment and works.
b. Fulfillment of contractual obligations relating to handover including as‐built
drawings.
c. Implementation of the Consultant’s standard procedures for handover and entry
into the maintenance period.
d. Preparation of snagging lists of work to be done before handover is
contemplated.
٢.٢.٥ Handover Phase
Immediately after handover, the following supervisory duties will carried out:
a. Preparation of snagging lists to be presented to the Contractor to be carried out
within a stated period within the maintenance period.
b. Preparation of final account in conjunction with the Contractor for presentation
to the Owner
٢.٢.٦ Notes:
a. The Consultant will assign suitably qualified, experienced & ANB approved site
staff.
b. The Consultant will assure that Contractor will provide and maintain fully
furnished and equipped site office for the Consultant’s staff.
c. The Owner shall assign a general Contractor who will be responsible for his sub‐
contractors.
d. All Local Authorities Permits should be obtained by Consultant.
ARTICLE ٣: CONSULTANT’S FEE
٣.١ Design Services
The Owner shall compensate the consultant for the design services described in Article
(٢.١) a total fee of SAR ________________ (Saudi Riyals __________________________
Only). Such fee shall be paid to the Consultant as follows:
First Payment
(After approval of preliminary Drawing) ٤٠٪ SAR ________
Second Payment
(After approval of Final Drawing & BOQ) ٥٠٪ SAR ________
Third Payment
(after Bid Evaluation & recommendation) ١٠٪ SAR ________
٣.٢ Supervision Services
The Owner shall compensate the Consultant for the Construction Supervision services
described in the Article (٢.٢), Total fee of = SAR __________________ (Saudi Riyals
_____________ _________________________Only.)
The Owner shall pay to the Consultant an amount of SAR ____________=
SR __________________per month. ٤
(Saudi Riyals ________________________________ Only per month).
٣.٣ The Consultant’s fee shall be paid by the Owner within two (٢) weeks from the
receipt of the Consultant invoice.
٣.٤ ٥٪ retention to be implemented on the supervision monthly fee. This retention
to be released upon the project substantial hand over against a bank guarantee value,
valid for ١٢ months i.e until the project final hand over.
ARTICLE ٤: CONTRACT PERIOD
It is agreed that duration of this agreement as follow
Design phase duration is ٣ weeks for site survey schematic design from the date
of site hand over: provided interior and exterior design requirements have been
delivered to the Consultant by Owner, and ٨ weeks for tender documents from
the final approval date of schematic design. This duration do not include review
and approval period required by the Owner or any other Authorities.
Tendering & Tenders evolution expected duration in (٨) Eight weeks from the
Notice to proceed date.
Construction supervision accepted duration is (٤) Four months from the Notice
to proceed date. Therefore Tenders shall instruct to submit their bids based on ٤
months construction duration.
If the construction duration goes beyond ٤ months, the Owner will compensate
the Consultant for his supervision services from the Contractors dues of which
the same shall be clearly stated in the Construction contracts documents.
ARTICLE ٥: DELAY PENALTY
In the event that the Consultant fails to perform his obligations for the design service,
he shall be liable for a penalty of (٠.٣٣٪) per day, provided that the total penalty shall
not exceed ١٠٪ of the design services value and provided further that the delay is not
due to force majeure, contingency or reasons beyond control of the Consultant. The
Owner shall have the right to terminate this contract after giving (١٥) days notice to the
consultant in case there is any delay after the consultants becomes liable for the
maximum ١٠٪ penalty.
ARTICLE ٦: OWNER’S RESPONSIBILITY
This agreement is a Consultancy Services Contract, and not an Employment Contract.
Therefore, the Owner is not responsible for compensation resulting from any losses in
the Consultants staff.
ARTICLE ٧: NOTICES
All notices, claims and date related to this Contract shall be delivered to the other party
at his address set forth below via registered mail, fax or hand delivery as appropriate
provided that delivery is confirmed.
If to the Owner at: Arab National Bank
P.O. Box. ٥٦٩٢١ Riyadh ١١٥٦٤
Fax: (٠١) ٢٠٧ ١٤٣٦
If to the Consultant at: ______________________________________
P.O. Box. ______ Riyadh _______
Tel: ___________ Fax: ______________
ARTICLE ٨: ADDITIONA SERVICES
Both parties shall upon agree to coast of any additional services is not included in
Article ٢.
ARTICLE ٩: OWNERSHIP OF DOCUMENTS
All documents, drawings and specification for this project are property of the Owner,
whether the project for which they were made is executed or not. These are not to be
used by Consultant on other project, except as agreed in writing by the Owner.
ARTICLE ١٠: SUCCESSORS & ASSINGS
Neither the Owner not the consultant shall assign sublet or transfer his respective
interests in this Agreement without the written consent of the other party.
ARTICLE ١١: DISPUTE & ARBITRATION
In the event of any dispute arising between the parties out of or in connection with this
contract such as disputes shall be settled in the first instance amicably. If settlement
cannot be reached, the matter shall be submitted to and finally settled by arbitration in
accordance with the rules of conciliation and arbitration of the Kingdom of Saudi Arabia.
ARTICLE ١٢: LAW
This agreement shall be governed by the laws of the Kingdom of Saudi Arabia.
This agreement has been executed in two copies: one to be retained by the Owner and
one to be retained by the Consultants.
OWNER CONSULTANTS
Engr. Saleh Al Zunaidi ________________________
Deputy General Manger General Manager
Head of Premises & Admin.
Services Department
Date: ……………………………… Date: ………………………………