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

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What is a Notice Of Intent To Award Construction Contract?

The Notice of Intent to Award Construction Contract is a crucial document in the procurement process for construction projects in England and Wales. It is typically issued after bid evaluation and before the formal contract execution, serving as a bridge between selection and final award. This notice informs the successful contractor of their selection while allowing time for any necessary pre-contract conditions to be met. It's particularly important in public sector projects where it triggers statutory standstill periods and provides unsuccessful bidders with the opportunity to challenge the decision if necessary. The document includes essential information such as project scope, contract value, and key terms, forming part of the audit trail for the procurement process.

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Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

England and Wales

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Notice Of Intent To Award Construction Contract

A Notice of Intent to Award Construction Contract is a formal document that bridges the gap between contractor selection and final contract execution in construction procurement. You'll use this notice to officially inform your chosen contractor of their successful bid while establishing the framework for contract finalization under England and Wales construction law.

When do you need this document?

You need this notice whenever you're awarding a construction contract after completing a competitive procurement process. It's essential in public sector projects where transparency regulations require a formal notification period before contract award. Private sector clients also use this document to establish clear expectations with successful contractors while allowing time to complete due diligence, secure financing, or satisfy other pre-contract conditions. The notice is particularly important when your project involves multiple stakeholders including project managers and quantity surveyors who need advance notice of contract award to coordinate their services.

Key legal considerations

Your notice must clearly specify all material terms of the intended contract, including project scope, contract value, payment terms, and key performance dates. Under procurement regulations, you must provide sufficient detail to demonstrate that your selection process was fair and transparent. The document should include any conditions precedent that must be satisfied before contract execution, such as insurance requirements, performance bonds, or planning approvals. You should also specify the timeline for contract finalization and project commencement, as delays in formalizing the contract could affect your legal position. Consider including provisions for what happens if pre-contract conditions cannot be met within the specified timeframe.

Legal requirements in England and Wales

Under the Construction Act 1996 and supporting regulations, your notice must comply with specific payment and dispute resolution frameworks that will govern the final contract. The Construction Contracts Regulations 2011 require that payment procedures are clearly established from the outset, so your notice should reference how interim payments will be calculated and when they'll be due. If you're a public sector contracting authority, you must observe mandatory standstill periods under procurement regulations before finalizing the contract. The Late Payment of Commercial Debts Act 1998 also affects your payment terms, giving contractors rights to interest on late payments. Your notice should acknowledge these statutory requirements and confirm that the final contract will include compliant payment provisions and adjudication procedures as required by the Local Democracy, Economic Development and Construction Act 2009.

GOVERNING LAW

Applicable law

This Notice Of Intent To Award Construction Contract is drafted to comply with England and Wales law. Key legislation includes:

Housing Grants, Construction and Regeneration Act 1996: Primary legislation governing construction contracts in England and Wales, also known as the Construction Act. Sets out framework for payment and dispute resolution in construction contracts.

Construction Contracts (England and Wales) Regulations 2011: Detailed regulations supporting the Construction Act, providing specific requirements for construction contracts including payment procedures and adjudication processes.

Late Payment of Commercial Debts (Interest) Act 1998: Legislation allowing businesses to claim interest on late payments and compensation for debt recovery costs in commercial transactions.

Local Democracy, Economic Development and Construction Act 2009: Updates to the Construction Act, including amendments to payment and adjudication provisions in construction contracts.

Public Contracts Regulations 2015: Regulations governing public procurement processes, including requirements for tender notices and award procedures for public construction contracts.

Utilities Contracts Regulations 2016: Specific regulations for procurement in the utilities sector, including water, energy, transport and postal services.

Concession Contracts Regulations 2016: Regulations governing the award of concession contracts by public authorities and utilities.

JCT Contract Forms: Standard forms of construction contracts published by the Joint Contracts Tribunal, widely used in the UK construction industry.

NEC Contract Forms: New Engineering Contract suite of construction contracts, providing alternative standardized contract forms.

FIDIC Contract Forms: International standard forms of construction contracts published by the International Federation of Consulting Engineers.

Misrepresentation Act 1967: Legislation governing false or misleading statements made during contract formation.

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts, protecting against unreasonable terms.

Construction (Design and Management) Regulations 2015: Health and safety regulations specific to construction projects, known as CDM Regulations, defining responsibilities of all parties involved.

Health and Safety at Work etc. Act 1974: Primary legislation for workplace health and safety, setting out general duties for employers, employees, and contractors.

Environmental Protection Act 1990: Legislation controlling pollution and waste management aspects of construction projects.

Town and Country Planning Act 1990: Principal planning legislation affecting construction projects, including requirements for planning permission and development control.

Further Notice of Intent documents

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