Letter Of Intent To Award Construction Contract for Nigeria

Letter Of Intent To Award Construction Contract Template for Nigeria

A formal document used in Nigerian construction projects that communicates the intention to award a construction contract to a selected contractor. This document bridges the gap between bid selection and final contract execution, outlining key commercial terms, conditions precedent, and project parameters. Operating under Nigerian law, it serves as a preliminary commitment while maintaining a clear distinction from the binding construction contract to follow. The document includes essential project details, timelines, and conditions that must be met before proceeding to the final contract stage.

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What is a Letter Of Intent To Award Construction Contract?

The Letter of Intent to Award Construction Contract is a crucial document in the Nigerian construction industry that bridges the tender process and final contract execution. It is typically used after a contractor has been selected through a competitive bidding process but before the formal construction contract is finalized. This document serves multiple purposes: it demonstrates the employer's commitment to proceeding with the selected contractor, outlines key commercial and technical terms agreed upon, and specifies conditions that must be met before final contract award. While governed by Nigerian law and influenced by common law principles, it is carefully drafted to avoid creating a binding construction contract while maintaining clear communication of intentions and expectations. The document is particularly important in large-scale construction projects where there may be a significant period between contractor selection and final contract execution, often due to the need for various approvals, documentation, or financing arrangements.

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

1. Letter Header: Complete contact details of both parties, date, and reference number

2. Subject Line: Clear identification of the project and purpose of the letter

3. Project Introduction: Brief description of the project and reference to the tender/bid process

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

5. Project Scope Overview: High-level description of the construction work to be performed

6. Key Commercial Terms: Outline of the agreed contract value and basic payment terms

7. Key Timelines: Expected project commencement and completion dates

8. Conditions Precedent: List of conditions that must be met before formal contract award

9. Non-Binding Statement: Clear statement that this LOI does not constitute a binding contract

10. Next Steps: Process and timeline for moving toward final contract execution

11. Closing and Signatures: Formal closing, signature blocks for authorized representatives

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

1. Performance Security Requirements: Details of any required performance bonds or guarantees, included when specific security instruments are required

2. Insurance Requirements: Overview of required insurance coverage, included when specific insurance requirements need to be highlighted

3. Local Content Commitments: Specific commitments regarding local content requirements, included for projects subject to Nigerian local content laws

4. Preliminary Works Authorization: Authorization to commence certain preliminary works, included when early works are required before full contract execution

5. Confidentiality Provisions: Specific confidentiality requirements, included for sensitive projects

6. Currency and Exchange Rate Provisions: Included for international contracts or where multiple currencies are involved

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

1. Schedule A - Project Brief: Detailed description of the project scope and technical requirements

2. Schedule B - Preliminary Price Breakdown: High-level breakdown of the contract price components

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

4. Schedule D - Key Dates and Milestones: Detailed timeline of project milestones and critical dates

5. Schedule E - Required Documentation: List of documents required for final contract execution

6. Appendix 1 - Site Information: Basic information about the construction site and access requirements

7. Appendix 2 - Tender Clarifications: Key clarifications from the tender process that affect the contract award

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

Nigeria

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Infrastructure

Real Estate

Oil & Gas

Manufacturing

Healthcare

Education

Retail

Hospitality

Industrial

Mining

Power & Energy

Transportation

Telecommunications

Agriculture

Relevant Teams

Legal

Commercial

Procurement

Project Management

Construction

Operations

Finance

Risk & Compliance

Business Development

Technical

Executive Leadership

Contract Administration

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Commercial Director

Procurement Manager

Business Development Manager

Chief Executive Officer

Managing Director

Project Sponsor

Technical Director

Chief Financial Officer

Operations Director

Bid Manager

Risk Manager

Compliance Officer

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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