Contractor Letter Of Intent for United Arab Emirates

Contractor Letter Of Intent Template for United Arab Emirates

A Letter of Intent (LOI) template specifically designed for contractor agreements in the United Arab Emirates, incorporating provisions that comply with UAE civil and commercial laws. The document serves as a preliminary agreement outlining the intention to enter into a formal contract while establishing key terms, conditions, and preliminary obligations. It includes provisions for scope definition, commercial terms, validity periods, and governing law clauses that align with UAE legal requirements, making it suitable for both private and public sector construction and development projects within the UAE jurisdiction.

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What is a Contractor Letter Of Intent?

The Contractor Letter of Intent Template is a crucial pre-contractual document used in the United Arab Emirates when parties intend to formalize their commitment to enter into a detailed contractor agreement. This document is particularly relevant in the UAE's dynamic construction and development sector, where projects often require preliminary commitments before finalizing comprehensive contracts. The template complies with UAE Federal Law No. 5 of 1985 (Civil Code) and other relevant legislation, incorporating essential elements such as scope definition, commercial terms, and validity periods. It serves as a bridge between initial negotiations and the final contract, allowing parties to commence preliminary works or mobilization while protecting their interests under UAE law. The document is structured to be both legally sound and practically effective in the UAE business environment, where rapid project initiation often needs to be balanced with proper legal protection.

What sections should be included in a Contractor Letter Of Intent?

1. Letter Header: Date, addressee details, and reference number

2. Project Identification: Clear identification of the project, including location and basic scope

3. Expression of Intent: Clear statement of intention to enter into a formal contract subject to conditions

4. Scope of Works: Brief description of the intended works or services to be performed

5. Commercial Terms: Key commercial terms including preliminary price indication or pricing mechanism

6. Duration: Validity period of the LOI and anticipated timeline for formal contract execution

7. Key Conditions: Essential conditions that need to be met before proceeding to formal contract

8. Preliminary Obligations: Any immediate actions or obligations of either party during the LOI period

9. Binding vs Non-binding Elements: Clear statement of which provisions are intended to be legally binding

10. Governing Law: Confirmation of UAE law as governing law and relevant jurisdiction

11. Signature Block: Signature spaces for authorized representatives of both parties

What sections are optional to include in a Contractor Letter Of Intent?

1. Exclusivity: Used when parties want to establish exclusive negotiations during the LOI period

2. Preliminary Payment Terms: Include when immediate mobilization or preliminary works are required

3. Confidentiality: Added when sensitive information will be shared during the LOI period

4. Early Works Authorization: Used when contractor needs to commence certain works before formal contract

5. Third Party Approvals: Include when project requires specific regulatory or third-party approvals

6. Parent Company Guarantee: Added when additional security is required from contractor's parent company

7. Insurance Requirements: Include when preliminary works require specific insurance coverage

8. Termination Provisions: Added when specific termination rights need to be established during LOI period

What schedules should be included in a Contractor Letter Of Intent?

1. Preliminary Scope of Works: Detailed description of the intended works or services

2. Preliminary Program: Initial project timeline and key milestones

3. Price Breakdown: Preliminary cost estimates or agreed rates

4. Key Personnel: List of key personnel from both parties involved in the project

5. Required Permits and Approvals: List of necessary regulatory approvals and permits

6. Site Access Requirements: Details of site access arrangements during LOI period

7. Form of Parent Company Guarantee: Template for parent company guarantee 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

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions
Relevant Industries

Construction

Real Estate Development

Infrastructure

Oil & Gas

Energy

Healthcare

Hospitality

Industrial

Transportation

Commercial Development

Residential Development

Education

Retail

Relevant Teams

Legal

Operations

Commercial

Project Management

Construction

Business Development

Procurement

Executive Leadership

Contracts Administration

Risk Management

Technical Services

Development

Relevant Roles

Project Director

Construction Manager

Commercial Director

Legal Counsel

Contracts Manager

Project Manager

Business Development Manager

Operations Director

Chief Executive Officer

Managing Director

Procurement Manager

Technical Director

Development Manager

Head of Construction

General Counsel

Commercial Manager

Industries
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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