A Letter of Intent For Subcontractor is commonly used in situations where work needs to commence quickly, but the full subcontract terms are still being negotiated. Under English and Welsh law, this document provides a legally binding framework for interim works while protecting both parties' interests. It typically includes essential elements such as scope definition, payment terms, duration, and maximum financial commitment. The LOI should clearly state the intention to convert to a full subcontract and specify conditions for such conversion. This document is particularly crucial in time-sensitive projects where waiting for full contract execution could cause delays.
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1. Parties' Details: Full legal names and addresses of both the contractor and subcontractor
2. Project Details: Specific description of the project, location, and reference numbers
3. Scope of Works: Clear definition of the interim works to be performed under the LOI
4. Duration: Period of validity for the LOI and any conditions for extension
5. Financial Terms: Maximum financial commitment, payment terms, and payment schedule
6. Conversion Intent: Statement of intention to enter into a formal contract and conditions
1. Insurance Requirements: Specific insurance requirements and levels for high-risk or high-value work components
2. Health and Safety: CDM requirements and safety protocols for construction or hazardous activities
3. Intellectual Property: Rights and ownership of designs or innovations when work involves design elements or creative input
4. Confidentiality: Non-disclosure requirements when sensitive information will be shared
1. Schedule of Rates: Detailed breakdown of agreed rates and prices
2. Preliminary Programme: Initial timeline and key milestones
3. Scope Drawings: Any relevant drawings or specifications
4. Insurance Certificates: Copies of required insurance documentation
5. Form of Sub-Contract: Draft of the intended final sub-contract agreement
Relevant legal definitions
Affiliated Company
Agreed Rate
Commencement Date
Contract Sum
Completion Date
Contractor
Documents
Employer
Interim Works
Letter of Intent
Maximum Financial Commitment
Main Contract
Project
Programme
Provisional Sum
Site
Subcontract
Subcontract Works
Subcontractor
Variations
Working Day
Works
CDM Regulations
Construction Act
Intellectual Property Rights
Payment Due Date
Professional Indemnity Insurance
Relevant Event
Relevant Matter
Schedule of Rates
Clauses
Interpretation
Scope of Works
Duration
Payment Terms
Maximum Financial Commitment
Insurance Requirements
Health and Safety
Confidentiality
Intellectual Property Rights
Site Access
Quality Standards
Programme of Works
Variations
Termination
Dispute Resolution
Governing Law
Assignment and Subcontracting
Warranties and Representations
Force Majeure
Notices
Records and Audit
Third Party Rights
Entire Agreement
Severability
Conversion to Full Contract
CDM Compliance
Materials and Workmanship
Performance Security
Data Protection
Time of the Essence
Relevant Industries
Relevant Teams
Relevant Roles
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