Letter of intent—construction—contractor checklist

A letter of intent (LOI) may be entered into prior to the agreement and execution of a building contract (or sub-contract) to enable some design and/or works to begin. This Checklist sets out the key issues for a contractor to consider and the drafting it should look for, or request be included, to achieve a clear and binding letter of intent in a construction project. While the terms 'contractor' and 'employer' are used, the principles apply equally to an arrangement between a contractor and a sub-contractor. When negotiating/drafting a letter of intent, not all of the issues set out below will always be relevant and users must consider each issue in light of the particular circumstances. See Practice Note: Letters of intent—construction for more on letters of intent.

Key issues and clauses

1. • Are the parties’ details fully and correctly stated? Ensure that the full details of the employer and contractor are correctly stated at the beginning of the letter of intent (including the full company names, and company number if appropriate), to avoid any ambiguity as to the identity of the