Construction Contract: key clauses and how to draft it

What is a construction contract?

A construction contract obliges the contractor to carry out building, finishing or maintenance works for the owner in return for payment. Because works are complex, details and annexes (bills of quantities, drawings) are an essential part of the contract.

Key clauses every construction contract should include

The clearer the clauses, the fewer the disputes. Make sure at least these elements are covered:

• Owner and contractor details
• Description of works, specifications and drawings
• Contract value, payment method and interim certificates
• Execution period and work schedule
• Delay penalties and grace periods
• Change orders and extra works
• Warranty and defects period after handover
• Insurance and liability for accidents
• Provisional and final handover, and termination

Practical tips before signing

• Attach signed bills of quantities and drawings.
• Tie payments to measurable progress.
• Agree in writing how change orders are approved.
• Keep a log of site correspondence and approvals.

How to create a construction contract in Oqoodi AI

Oqoodi drafts contracts in Arabic and English, collects e-signatures through a secure link, keeps an audit trail of who did what and when, and archives every document for search.

1. Pick the "Construction Contract" template in Oqoodi, or describe your case to the AI assistant and let it draft the text.
2. Enter the parties, amounts and dates, then adjust the clauses to match your deal.
3. Generate an Arabic and an English version when needed and review the wording before sending.
4. Send the e-signature link to the other party, then track and archive the contract from your dashboard.