A Letter Of Intent To Award Construction Contract is a crucial document in the Canadian construction contracting process, typically issued after the completion of a competitive bidding process and before the execution of the main construction contract. It serves multiple purposes: formally notifying the successful contractor of their selection, establishing preliminary commitments, and outlining the path to final contract execution. While primarily non-binding, it may contain specific binding provisions such as confidentiality and exclusivity. This document is particularly important in large-scale construction projects where there may be a significant gap between contractor selection and final contract execution, allowing parties to proceed with preliminary work while final contract details are being negotiated. The letter must align with provincial construction laws, including the Construction Act in Ontario or equivalent legislation in other provinces, and consider aspects such as prompt payment legislation and lien rights.
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1. Letterhead and Date: Company letterhead and current date
2. Recipient Details: Full name and address of the contractor
3. Project Identification: Clear identification of the project name, location, and reference numbers
4. Intent Statement: Clear statement of intention to award the construction contract
5. Scope Reference: Reference to the contractor's bid/proposal and scope of work
6. Key Commercial Terms: Contract price, payment terms, and project timeline
7. Conditions Precedent: Conditions that must be met before formal contract award
8. Time Limitation: Validity period of the letter of intent
9. Next Steps: Process and timeline for formal contract execution
10. Confidentiality: Statement regarding confidentiality of the letter and its terms
11. Legal Effect: Statement clarifying which provisions are binding and non-binding
12. Signature Block: Authorized signatory details and signature lines
1. Limited Notice to Proceed: Authorization for contractor to begin limited preliminary work, used when immediate action is required
2. Early Works Agreement: Terms for preliminary work if required before main contract execution
3. Insurance Requirements: Specific insurance requirements if work will commence before main contract execution
4. Termination Rights: Specific termination provisions, included for complex or high-value projects
5. Dispute Resolution: Specific dispute resolution procedures, included for complex projects or when early works are authorized
1. Schedule A - Scope of Work: Detailed description of the construction work to be performed
2. Schedule B - Commercial Terms: Detailed breakdown of contract price, payment schedule, and commercial terms
3. Schedule C - Project Timeline: Key milestones and project schedule
4. Schedule D - Insurance Requirements: Detailed insurance requirements and coverage limits
5. Schedule E - Contractor's Proposal: Reference copy of the contractor's proposal or bid
6. Schedule F - Key Personnel: List of key personnel from both parties involved in the project
Relevant legal definitions
Agreement
Contractor
Owner
Project
Works
Contract Price
Contract Documents
Substantial Completion
Construction Schedule
Site
Specifications
Drawings
Applicable Laws
Business Day
Commencement Date
Completion Date
Construction Contract
Contract Security
Early Works
Force Majeure
Letter of Intent
Notice to Proceed
Project Manager
Required Insurance
Scope of Work
Tender Documents
Time for Completion
Working Day
Construction Equipment
Contract Time
Holdback
Performance Bond
Progress Payment
Subcontractor
Warranty Period
Contractor
Owner
Project
Works
Contract Price
Contract Documents
Substantial Completion
Construction Schedule
Site
Specifications
Drawings
Applicable Laws
Business Day
Commencement Date
Completion Date
Construction Contract
Contract Security
Early Works
Force Majeure
Letter of Intent
Notice to Proceed
Project Manager
Required Insurance
Scope of Work
Tender Documents
Time for Completion
Working Day
Construction Equipment
Contract Time
Holdback
Performance Bond
Progress Payment
Subcontractor
Warranty Period
Clauses
Intent to Award
Project Scope
Contract Value
Duration and Timeline
Conditions Precedent
Non-Binding Nature
Binding Provisions
Confidentiality
Exclusivity
Limited Authority to Proceed
Documentation Requirements
Insurance Requirements
Termination Rights
Governing Law
Time Limitation
Good Faith Negotiation
Costs and Expenses
Representations and Warranties
Next Steps
Acknowledgment and Acceptance
Project Scope
Contract Value
Duration and Timeline
Conditions Precedent
Non-Binding Nature
Binding Provisions
Confidentiality
Exclusivity
Limited Authority to Proceed
Documentation Requirements
Insurance Requirements
Termination Rights
Governing Law
Time Limitation
Good Faith Negotiation
Costs and Expenses
Representations and Warranties
Next Steps
Acknowledgment and Acceptance
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Healthcare Construction
Educational Facilities
Municipal Works
Transportation Infrastructure
Energy and Utilities
Mining
Oil and Gas
Retail Development
Mixed-Use Development
Public Works
Institutional Construction
Relevant Teams
Legal
Operations
Project Management
Construction
Procurement
Commercial
Risk Management
Business Development
Contract Administration
Executive Leadership
Development
Property Management
Facilities Management
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Chief Executive Officer
Chief Operating Officer
Development Director
Construction Director
Procurement Manager
Commercial Manager
Risk Manager
Operations Manager
Facilities Manager
Property Manager
General Counsel
Project Director
Senior Project Manager
Contracts Manager
Business Development Manager
Cost Manager
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