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Zayenha Construction
AI assistant for contractors and engineers in the Saudi construction sector
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Zayenha Construction is your specialized AI assistant for construction contracting and project management in Saudi Arabia. It drafts Shariah- and law-compliant, Saudi-localized FIDIC contracts, calculates bid and performance bonds under the Government Tenders and Procurement Law, reviews Bills of Quantities (BOQ) and variation orders within the statutory increase/decrease caps, and prepares Taking-Over and Performance certificates alongside retention calculations and Extension of Time (EOT) claims. Built on FIDIC, ISO 9001/45001, and PMBOK standards, it delivers a ready professional document for any government or private contract, from drafting through project close-out.
Example tasks it handles
Example 1
Draft a Saudi-localized FIDIC construction contract with an SCCA arbitration clause
Example 2
Calculate the bid and performance bonds for a government tender per the Tenders and Procurement Law ratios
Example 3
Draft a variation order within the statutory 10% increase / 20% decrease caps
Example 4
Prepare a Taking-Over Certificate with a two-stage retention release schedule
Knowledge base reference
Reference material the assistant draws on. We review the content periodically and keep it accurate, but official sources remain the authority.
Best Practices
PMBOK Guide for Project Management (Project Management Institute)
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The Project Management Body of Knowledge (PMBOK Guide), published by the Project Management Institute (PMI), is the most widely used global reference for managing scope, schedule, cost, and quality on large construction projects. It is used as a planning and control framework on major Saudi construction programs (such as Vision 2030 projects), often alongside specialized methodologies like Lean Construction to reduce material and time waste and improve on-site workflow. When drafting a project plan or a progress report for the project owner, referencing PMBOK methodology (WBS, cost and schedule baselines) lends the document the professional credibility expected by major owners and consultants.
Integrated Management: ISO 9001 (Quality) and ISO 45001 (Occupational Health & Safety)
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ISO 9001 (Quality Management) and ISO 45001 (Occupational Health and Safety Management), issued by the International Organization for Standardization, share a common High-Level Structure that makes them easy to integrate into a single management system rather than running them separately. They are among the most frequently required certifications in prequalification criteria for major Saudi and Gulf construction tenders, with owners and main contractors commonly mandating them for subcontractors as quality and safety assurance before admitting them to the qualified bidders list. Lacking either certification can exclude a contractor from major tenders regardless of technical capability.
Glossary
Extension of Time (EOT)
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A contractual mechanism letting the contractor request an extension of the project completion date when events outside its control occur: employer-instructed variations, unforeseen site conditions, force majeure, or late site handover. Granting an EOT requires: (1) formal notice within the contractually specified window — commonly 28 days under FIDIC forms, and (2) demonstrating the event's actual impact on the project's critical path, not just an isolated partial delay. An approved EOT protects the contractor from liquidated damages for the extended period only — any additional delay beyond the approved EOT remains the contractor's responsibility.
Regulations & Laws
Variation Order Caps in Government Contracts
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Under the Government Tenders and Procurement Law (M/128) and its implementing regulations, the authorized officer at the government entity may increase the contractor's obligations within contract scope by up to 10% of total contract value, or decrease them by up to 20%, provided this doesn't breach specifications or alter the contract's nature or financial balance, and additional works stay within the original scope. Example: a SAR 10 million contract permits an increase order of no more than SAR 1 million, or a decrease of no more than SAR 2 million. Honesty note: these ratios are corroborated via consistent secondary sources, not the primary text directly — verify against the official regulation before use in a binding formal document.
Government Contract Guarantees (Tenders and Procurement Law)
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The Government Tenders and Procurement Law was issued under Royal Decree No. (M/128) dated 13/11/1440H — the core reference for any Saudi government construction contract. Article 41: bidders submit an initial (bid) bond of 1%-2% of the offer value. Article 61: the awarded contractor submits a final (performance) bond of 5% of the contract value within 15 business days of award notification, extendable once for an equal period if needed. Article 66: an advance payment may be released against a bank guarantee of equal value, protecting the government entity against non-performance risk. Example: a SAR 20 million contract requires a performance bond of at least SAR 1 million.
Contractors Classification System
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The Contractors Classification System was issued under Royal Decree No. (M/9) dated 18/1/1443H, based on Council of Ministers Resolution No. (49) dated 16/1/1443H. It requires every contractor operating in Saudi Arabia to obtain a classification from MOMRAH via the Balady platform, specifying the field/activity and grade based on financial, technical, and administrative capacity. It supersedes the earlier system under Royal Decree No. (M/18) dated 20/3/1427H. The system requires a valid commercial registration specifically covering the requested contracting activity — a general commercial registration without a matching classification is insufficient to bid on major government or large private construction tenders.
Saudi Building Code (SBC) Application Law
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The Saudi Building Code (SBC) Application Law was issued under Royal Decree No. (M/43) dated 26/4/1438H, published in the Official Gazette on 21/3/1440H. Article 16 states the law takes effect one year after publication, rolled out in phases under the implementing regulation (30 articles across 5 phases through 1444H). It requires every building and facility in the Kingdom to comply with the SBC, issued by the Saudi Building Code National Center in coordination with MOMRAH. Article 12 sets a fine of up to SAR 1 million per violation per building, and/or suspension of the practice license from one month to a year. When drafting any construction contract, verify the referenced technical specifications explicitly cite the current SBC, not superseded standards.
Ready Templates
Project Close-Out: Taking-Over/Performance Certificates, DLP, and Retention
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The globally standard (Saudi-applied) construction project close-out model has two stages: a 'Taking-Over Certificate' issued by the engineer/supervisor once substantial works are complete, starting the 'Defects Liability Period' (DLP) — commonly 12 months, sometimes up to two years on major contracts — during which the contractor must remedy any defect at its own cost, without extra payment. Once the DLP ends and all notified defects are remedied, a 'Performance Certificate' is issued. Tied to this model is Retention: 5%-10% withheld from each interim payment, with half typically released at Taking-Over and the remainder at the Performance Certificate; contractors can often substitute cash retention with an equivalent bank guarantee.
Bill of Quantities (BOQ) as the Pricing and Valuation Reference Document
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The Bill of Quantities (BOQ) is the globally standard structure (used in FIDIC contracts) for itemizing scope-of-work quantities precisely, so competing contractors can price them on a uniform, comparable basis. Within contract documents it carries the same status as drawings and technical specifications — not a secondary attachment. It is subsequently used as the reference basis for valuing any variation order, additional works, or omissions: new items are priced using the matching unit rate from the original BOQ where one exists, or a rate derived from it. Any well-structured Saudi construction contract — government or private — should include a detailed BOQ to avoid pricing disputes later.
The FIDIC Contract Suite and Its Saudi Localization
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The FIDIC (International Federation of Consulting Engineers) contract suite is the most widely adopted global framework for allocating contractual risk: the Red Book for traditional build contracts (employer provides design), the Yellow Book for design-and-build (contractor handles design), and the Silver Book for EPC/turnkey contracts where the contractor bears most risk for a fixed price. In the Saudi market, these forms are customarily amended for Shariah and legal compliance: removing or rewording Sub-Clause 14.8 (late-payment financing charges) due to the riba prohibition, directing arbitration to the Saudi Center for Commercial Arbitration (SCCA) instead of default international bodies — commonly dropping the Dispute Adjudication Board — and making the Arabic version prevail on interpretation. (Localization details reflect documented market practice from specialist counsel, not one official unified text — confirm final wording with legal counsel.)
Ready prompts in this field
Human-vetted, ready-to-use prompts.
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Strategic Partnership and Joint-Venture Evaluation Before Contracting
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Saudi Residential Project Feasibility Study (ROI + NPV + IRR)
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Financial Feasibility Study for a New Project
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WACC Calculation for Saudi Infrastructure Project — Vision 2030 Giga-Project
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Capital Budgeting: NPV and IRR Project Appraisal
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Technical & Quantity Feasibility Study for a Construction Project (BOQ + Specs)
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Saudi Building Code (SBC) Compliance Checklist Before Final Handover
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Note:
The content above is informational and intended for professional reference. It is not formal legal, tax, or professional advice. The regulatory references cited above are drawn specifically from official Saudi Arabian law; while the platform serves users across the Arab world, users outside Saudi Arabia are advised to consult the regulations applicable in their own country. Please consult official sources and specialists before taking any action.