Project Alliance Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Project Alliance Agreement

"I need a Project Alliance Agreement for a smart city development project in Dubai, UAE, starting March 2025, involving a government authority as the owner, two construction contractors, and a technology solutions provider, with specific provisions for data protection and smart infrastructure integration."

Document background
Project Alliance Agreements are typically used for complex, high-value projects in the UAE where traditional contracting approaches may not effectively address project risks and complexities. This document type is particularly relevant when projects require deep collaboration between multiple stakeholders and where innovation and collective problem-solving are critical to project success. The agreement structure follows UAE legal requirements while incorporating international best practices in alliance contracting. It establishes governance frameworks, risk-sharing mechanisms, and commercial models that promote collaborative behaviors and align all parties' interests with project objectives. The Project Alliance Agreement is especially suitable for major infrastructure, construction, and development projects where scope definition may evolve and where stakeholder alignment is crucial for project success.
Suggested Sections

1. Parties: Identification and details of all alliance participants

2. Background: Context of the alliance formation and project overview

3. Definitions and Interpretation: Defined terms and interpretation principles

4. Alliance Principles and Objectives: Core alliance values, behavioral commitments, and project objectives

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Alliance Governance Structure: Alliance Leadership Team (ALT) and Alliance Management Team (AMT) composition and responsibilities

7. Project Scope and Delivery: Detailed project scope, deliverables, and performance requirements

8. Commercial Framework: Target cost, pain/gain share mechanisms, and compensation model

9. Risk and Opportunity Sharing: Risk allocation principles and shared opportunity management

10. Performance Measurement: KPIs, performance assessment criteria, and reporting requirements

11. Resource Management: Staff contribution, equipment, and resource allocation principles

12. Quality and Safety Requirements: Quality standards, HSE requirements, and compliance obligations

13. Insurance and Liability: Insurance requirements and liability framework

14. Intellectual Property: IP ownership, licenses, and usage rights

15. Confidentiality: Confidentiality obligations and information handling

16. Dispute Resolution: Issue resolution procedures and escalation process

17. Termination: Termination events and consequences

18. General Provisions: Standard legal provisions including governing law, notices, and amendments

Optional Sections

1. Environmental Management: Specific environmental obligations and management plans, required for projects with significant environmental impact

2. Community Engagement: Community relations and stakeholder management requirements, important for public-facing projects

3. Islamic Finance Compliance: Specific provisions for Sharia-compliant financing arrangements, if applicable

4. Local Content Requirements: UAE national content requirements and obligations, if applicable to the project

5. Technology and Innovation: Specific provisions for technology development and innovation sharing

6. Force Majeure: Extended force majeure provisions for high-risk or long-term projects

7. Step-in Rights: Rights and procedures for project step-in, particularly relevant for critical infrastructure projects

8. Transition Arrangements: Specific provisions for transition between project phases or handover requirements

Suggested Schedules

1. Schedule 1 - Project Scope and Technical Requirements: Detailed technical specifications and scope documents

2. Schedule 2 - Commercial Framework Details: Detailed compensation model, pain/gain calculations, and payment procedures

3. Schedule 3 - Governance Procedures: Detailed procedures for ALT and AMT operations

4. Schedule 4 - Key Performance Indicators: Detailed KPI definitions, measurement methods, and targets

5. Schedule 5 - Project Program: Project timeline, milestones, and delivery schedule

6. Schedule 6 - Resource Plan: Detailed resource allocation and management plan

7. Schedule 7 - Quality Management Plan: Quality assurance and control procedures

8. Schedule 8 - HSE Management Plan: Health, safety, and environmental management procedures

9. Schedule 9 - Risk Register: Initial risk register and risk management procedures

10. Schedule 10 - Forms and Procedures: Standard forms, certificates, and procedural documents

11. Appendix A - Insurance Requirements: Detailed insurance specifications and requirements

12. Appendix B - Key Personnel: Details of key personnel and roles

13. Appendix C - Parent Company Guarantees: Form of parent company guarantees if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Infrastructure Development

Construction

Oil & Gas

Renewable Energy

Transportation

Healthcare

Education

Smart Cities

Telecommunications

Water and Utilities

Industrial Development

Real Estate Development

Relevant Teams

Legal

Commercial

Operations

Project Management Office

Risk and Compliance

Finance

Procurement

Technical Services

Design

Construction

Quality Assurance

Relevant Roles

Project Director

Commercial Manager

Legal Counsel

Contract Manager

Alliance Manager

Chief Executive Officer

Operations Director

Technical Director

Risk Manager

Finance Director

Project Controls Manager

Design Manager

Construction Manager

Procurement Manager

Quality Assurance Manager

Industries
UAE Civil Code (Federal Law No. 5 of 1985): Fundamental law governing contracts, obligations, and civil transactions in the UAE. Contains provisions for contract formation, validity, and enforcement.
UAE Commercial Transactions Law (Federal Law No. 18 of 1993): Regulates commercial transactions and business relationships, including provisions for commercial contracts and business obligations.
UAE Companies Law (Federal Law No. 2 of 2015): Governs company formations and joint ventures, crucial for establishing the alliance structure and relationships between parties.
UAE Construction Law (Various Emirates' Local Orders): Local regulations governing construction activities, permits, and technical requirements specific to each emirate.
UAE Arbitration Law (Federal Law No. 6 of 2018): Governs arbitration procedures and enforcement of arbitral awards, essential for dispute resolution mechanisms in alliance agreements.
UAE Labor Law (Federal Law No. 8 of 1980): Regulates employment relationships and worker rights, relevant for project staffing and labor requirements.
UAE Environmental Law (Federal Law No. 24 of 1999): Sets environmental protection requirements and obligations for construction projects.
UAE Insurance Law (Federal Law No. 6 of 2007): Governs insurance requirements and obligations, crucial for risk allocation in alliance agreements.
UAE Electronic Transactions and Commerce Law (Federal Law No. 1 of 2006): Relevant for electronic communications and digital documentation in modern project management.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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