Letter Of Intent To Award Construction Contract for Australia

Letter Of Intent To Award Construction Contract Template for Australia

A Letter of Intent to Award Construction Contract under Australian law is a formal pre-contractual document that communicates the principal's intention to enter into a construction contract with a selected contractor. The document outlines key commercial terms, conditions precedent, and any interim arrangements while the formal contract is being finalized. It operates within the framework of Australian contract law and state-specific construction legislation, incorporating requirements from various state Security of Payment Acts and the National Construction Code. The document serves as a crucial bridge between tender acceptance and formal contract execution, sometimes including authorization for preliminary works.

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What is a Letter Of Intent To Award Construction Contract?

A Letter Of Intent To Award Construction Contract is a critical document in the Australian construction industry, used during the period between selecting a preferred contractor and executing the final construction contract. It serves multiple purposes: formally notifying the successful contractor, outlining key commercial terms, establishing conditions precedent, and potentially authorizing preliminary works. The document must comply with Australian contract law principles and state-specific construction legislation, including Security of Payment Acts and building regulations. It's particularly important in time-sensitive projects where work needs to commence before the final contract is executed, though care must be taken to clearly delineate binding and non-binding elements. The letter typically follows a successful tender process and precedes the execution of a formal construction contract, providing a framework for the transition period while maintaining legal and commercial certainty.

What sections should be included in a Letter Of Intent To Award Construction Contract?

1. Sender and Recipient Details: Formal letter heading with full legal names and addresses of both parties

2. Project Reference: Clear identification of the project, including project name, location, and reference numbers

3. Intent Declaration: Clear statement of intention to award the construction contract, subject to conditions

4. Tender/Bid Reference: Reference to the contractor's successful tender or bid, including date and version

5. Key Commercial Terms: Summary of essential terms including contract sum, completion date, and scope

6. Conditions Precedent: List of conditions that must be satisfied before formal contract award

7. Timeline: Expected dates for contract finalization and project commencement

8. Interim Arrangements: Any authorized preliminary work or arrangements before formal contract execution

9. Binding/Non-binding Elements: Clear statement of which elements are binding and non-binding

10. Expiry Date: Validity period of the letter of intent

11. Authorization: Signature block with name and position of authorized representative

What sections are optional to include in a Letter Of Intent To Award Construction Contract?

1. Preliminary Works Authorization: Optional section authorizing specific preliminary works, used when immediate start is required before formal contract execution

2. Budget Constraints: Include when specific budget limitations or funding conditions need to be highlighted

3. Third Party Approvals: Required when project is subject to specific third-party or regulatory approvals

4. Payment Terms for Preliminary Works: Include when authorizing preliminary works to specify payment arrangements

5. Confidentiality Requirements: Add when specific confidentiality obligations need to be imposed immediately

6. Insurance Requirements: Include when specific insurance must be in place before preliminary works

7. Site Access Arrangements: Add when immediate site access needs to be arranged before formal contract

What schedules should be included in a Letter Of Intent To Award Construction Contract?

1. Schedule A - Scope Summary: High-level summary of the construction works scope

2. Schedule B - Key Commercial Terms: Detailed breakdown of contract sum, payment terms, and key dates

3. Schedule C - Pre-contract Documentation: List of documents required before formal contract execution

4. Schedule D - Preliminary Works Scope: Detailed description of any authorized preliminary works

5. Appendix 1 - Site Plan: Relevant drawings or plans identifying the construction site

6. Appendix 2 - Program Summary: High-level construction program or timeline

7. Appendix 3 - Key Personnel: List of key personnel from both parties involved in the project

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Letter of Intent

Sector

Cost

Free to use
Relevant Industries

Commercial Construction

Residential Development

Infrastructure

Industrial Construction

Mining Construction

Healthcare Facilities

Educational Facilities

Retail Development

Hospitality Construction

Government Infrastructure

Transport Infrastructure

Energy and Resources

Relevant Teams

Legal

Commercial

Project Management

Construction

Procurement

Risk and Compliance

Executive Leadership

Business Development

Operations

Contract Administration

Relevant Roles

Project Director

Construction Manager

Commercial Manager

Contract Administrator

Legal Counsel

Project Manager

Development Manager

Procurement Manager

Chief Executive Officer

Operations Director

Risk Manager

Quantity Surveyor

Cost Manager

Tender Manager

Business Development 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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