LETTERS OF INTENT: A CONTENTIOUS SOLUTION FOR THE CONSTRUCTION INDUSTRY

The construction industry is fast paced and every second counts when it comes to delivering a project on time!

In most commercial relationships, the parties would not commence the provision of services without a signed contract. However, in the construction industry it is common practice for procurement, site preparation and physical construction work to commence while the formal contractual documentation is negotiated.

As a result, the Letter of Intent (“LOI”) has become a commonly utilised tool for bridging the gap between the commencement of work and the execution of formal contractual documentation.

While the LOI can be an effective tool in ensuring that construction work is commenced on time, poorly drafted LOIs usually result in costly legal disputes and strained commercial relationships!

Is your construction Business using Letters of Intent? Find out how they can be a contentious solution and how to avoid legal disputes by reading our latest article.

Contact FG Solicitors to create bespoke Letters of Intent and interim agreements that give your Business legal certainty.