Document background
A Construction Letter of Intent is a crucial preliminary document used in Saudi Arabian construction projects to initiate pre-construction activities while the main contract is being finalized. It provides a legal framework compliant with Saudi law, including Sharia principles and construction regulations, allowing parties to commence essential preliminary works while protecting their interests. The document is particularly relevant in large-scale construction projects where immediate action is required before finalizing the comprehensive construction contract. It typically includes scope limitations, payment terms, duration, and specific authorizations for pre-construction activities, while clearly delineating binding and non-binding elements. This document type is especially important in Saudi Arabia's rapidly developing construction sector, where projects often involve international contractors and need to balance local legal requirements with global construction practices.
