Letter Of Intent To Award Construction Contract for the United Kingdom

Letter Of Intent To Award Construction Contract Template for England and Wales

A Letter of Intent to Award Construction Contract is a formal document used in England and Wales that signals the employer's intention to enter into a construction contract with a selected contractor. It outlines the key terms, conditions, and any preliminary works authorized before the formal contract execution. The document serves as a bridge between tender acceptance and formal contract signing, often including provisions for immediate commencement of works while the main contract is being finalized.

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What is a Letter Of Intent To Award Construction Contract?

A Letter Of Intent To Award Construction Contract is commonly used in the construction industry when there is a need to commence works or secure contractor commitment before the formal contract can be executed. This document, governed by English and Welsh law, typically includes the project scope, intended contract value, conditions precedent, and any preliminary works authorization. It provides a legal framework for the period between contractor selection and formal contract execution, while managing risks for both parties. The document is particularly important in time-sensitive projects where work needs to begin before all contract details are finalized.

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

1. Recipient Details: Full name, position, and address of the intended contractor

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

3. Intent Statement: Clear statement of intention to award the contract subject to conditions

4. Contract Value: Proposed contract sum or estimated value

5. Timeline: Expected start date and duration of works

6. Conditions Precedent: Conditions that must be met before formal contract award

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

1. Preliminary Works Authorization: Authorization to commence specific preliminary works before formal contract execution

2. Payment Terms for Preliminary Works: Terms for payment during the LOI period when preliminary works are authorized

3. Insurance Requirements: Specific insurance requirements for preliminary period when works are authorized prior to formal contract

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

1. Scope of Works: Detailed description of the works to be undertaken

2. Program of Works: Preliminary timeline and key milestones

3. Price Breakdown: Detailed breakdown of the contract sum

4. Draft Contract: Copy of the proposed main contract to be executed

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

England and Wales

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Industries

Housing Grants, Construction and Development Act 1996: Primary legislation governing construction contracts in England and Wales, including payment mechanisms and adjudication procedures

Construction Act 2009: Key amendments to the 1996 Act, updating provisions for payment and adjudication in construction contracts

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant for subcontractor relationships

Late Payment of Commercial Debts (Interest) Act 1998: Legislation concerning interest on late payments in commercial transactions

Contract Formation Principles: Common law principles governing how legally binding contracts are formed and enforced

RTS Flexible Systems Case Law: Key precedent (RTS Flexible Systems Ltd v Molkerei Alois Müller GmbH) establishing principles for letters of intent

Building Regulations 2010: Regulatory framework setting standards for design, construction and alterations to buildings

CDM Regulations 2015: Construction (Design and Management) Regulations governing safety and health in construction projects

Public Contracts Regulations 2015: Regulations governing procurement processes for public sector construction projects

JCT Standards: Joint Contracts Tribunal standard forms and guidelines widely used in UK construction industry

NEC Framework: New Engineering Contract principles and guidelines for construction projects

FIDIC Principles: International construction contract principles that may influence UK construction practice

RIBA Guidelines: Royal Institute of British Architects professional guidance for construction projects

RICS Practice Statements: Royal Institution of Chartered Surveyors professional standards and practice guidelines

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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