The Letter Of Intent To Award Construction Contract is a crucial document in the UAE construction industry that bridges the gap between contractor selection and formal contract execution. It is typically used when there is agreement on major commercial terms but the main construction contract requires additional time for finalization. This document, while not usually intended to be a binding contract itself, carries legal weight under UAE law and must be carefully drafted to reflect the parties' intentions accurately. It serves multiple purposes: confirming the selection of the contractor, enabling preliminary works or mobilization, and documenting key commercial terms and conditions precedent. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and relevant construction regulations, making it an essential tool in UAE construction project initiation.
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1. Letter Header: Official letterhead, date, reference number, and addressee details
2. Project Identification: Clear identification of the construction project, including project name and location
3. Intent Declaration: Clear statement of intention to award the construction contract
4. Contract Value: Statement of the agreed contract sum and payment terms
5. Scope Overview: Brief description of the construction works to be performed
6. Timeline: Expected project commencement date and duration
7. Conditions Precedent: Key conditions that must be met before formal contract signing
8. Validity Period: Duration for which the LOI remains valid
9. Authorization: Signature block with authorized signatory details
1. Mobilization Terms: Include when early mobilization is required before main contract signing
2. Advance Payment: Include when an advance payment will be made prior to contract signing
3. Confidentiality Statement: Include when specific confidentiality requirements need to be emphasized
4. Limited Notice to Proceed: Include when partial work authorization is needed before full contract execution
5. Key Personnel: Include when specific key staff commitments need to be confirmed
6. Insurance Requirements: Include when specific insurance must be in place before contract signing
1. Schedule A - Scope Summary: High-level scope of works to be performed
2. Schedule B - Commercial Terms: Summary of key commercial terms including contract value breakdown
3. Schedule C - Key Dates: Important milestone dates and overall project timeline
4. Schedule D - Required Documentation: List of documents required from the contractor before contract signing
5. Appendix 1 - Site Details: Basic information about the construction site and access
6. Appendix 2 - Key Contact Details: Contact information for key project stakeholders
Relevant legal definitions
Project
Works
Contract Sum
Site
Commencement Date
Completion Date
Contract Documents
Employer
Contractor
Employer's Representative
Conditions Precedent
Letter of Intent
Main Contract
Mobilization
Advance Payment
Project Manager
Permitted Purpose
Confidential Information
Business Day
Validity Period
Applicable Laws
Notice to Proceed
Project Schedule
Performance Security
Insurance Requirements
Works
Contract Sum
Site
Commencement Date
Completion Date
Contract Documents
Employer
Contractor
Employer's Representative
Conditions Precedent
Letter of Intent
Main Contract
Mobilization
Advance Payment
Project Manager
Permitted Purpose
Confidential Information
Business Day
Validity Period
Applicable Laws
Notice to Proceed
Project Schedule
Performance Security
Insurance Requirements
Clauses
Intent to Award
Scope of Works
Contract Value
Payment Terms
Conditions Precedent
Validity Period
Limited Authority
Mobilization
Contract Formation
Confidentiality
Governing Law
Early Works
Documentation Requirements
Insurance Requirements
Project Timeline
Termination
Notices
Authority
Good Faith
No Binding Effect (except specified clauses)
Representations and Warranties
Costs and Expenses
Scope of Works
Contract Value
Payment Terms
Conditions Precedent
Validity Period
Limited Authority
Mobilization
Contract Formation
Confidentiality
Governing Law
Early Works
Documentation Requirements
Insurance Requirements
Project Timeline
Termination
Notices
Authority
Good Faith
No Binding Effect (except specified clauses)
Representations and Warranties
Costs and Expenses
Relevant Industries
Commercial Real Estate
Residential Development
Infrastructure
Industrial Construction
Healthcare Facilities
Educational Facilities
Hospitality
Retail Development
Mixed-use Development
Oil & Gas Construction
Transportation Infrastructure
Government Buildings
Relevant Teams
Legal
Commercial
Construction
Project Management
Procurement
Operations
Business Development
Technical
Finance
Risk Management
Contract Administration
Relevant Roles
Project Director
Construction Manager
Commercial Director
Legal Counsel
Contract Manager
Project Manager
Chief Executive Officer
Managing Director
Development Director
Procurement Manager
Cost Control Manager
Business Development Manager
Technical Director
Operations Director
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