The Letter of Intent for Subcontractor is a crucial preliminary document used in Belgian business practice when a main contractor intends to engage a subcontractor for specific project works or services. This document serves as a bridge between initial discussions and the final subcontract agreement, providing a structured framework for negotiations while protecting both parties' interests. It becomes particularly important in complex projects where detailed negotiations are necessary before finalizing a full subcontract. Under Belgian law, while mainly non-binding in nature, certain provisions such as confidentiality and exclusivity can be made explicitly binding. The document typically precedes more detailed contractual arrangements and is especially valuable when parties need to commence preliminary work or secure resources while final terms are being negotiated.
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1. Identification of Parties: Full legal names and addresses of both the contractor and subcontractor
2. Background/Recitals: Context of the project and relationship between parties
3. Definitions: Key terms used throughout the letter of intent
4. Purpose and Scope: Clear statement of intent and outline of proposed subcontracting work
5. Duration and Timeline: Period of validity for the LOI and expected project timeline
6. Commercial Terms: Preliminary agreement on pricing, payment terms, and basic commercial conditions
7. Confidentiality: Obligations regarding confidential information exchange
8. Exclusivity: Terms regarding exclusive negotiations during the LOI period
9. Non-Binding Provisions: Clear identification of which provisions are non-binding
10. Binding Provisions: Specification of which provisions (like confidentiality) are legally binding
11. Termination: Conditions under which the LOI can be terminated
12. Governing Law: Confirmation of Belgian law as governing law
13. Signatures: Execution block for both parties
1. Break Fee: Terms regarding compensation if negotiations are terminated, used when significant preliminary work is required
2. Intellectual Property: Provisions regarding IP rights during preliminary phase, included when technical information will be shared
3. Due Diligence: Framework for information sharing and verification, included for complex projects
4. Costs and Expenses: Allocation of preliminary costs, included when significant expenses are expected during LOI phase
5. Insurance Requirements: Preliminary insurance obligations, included for high-risk projects
6. Dispute Resolution: Specific dispute resolution mechanisms, included for international parties or complex projects
7. Parent Company Guarantee: Requirements for parent company support, included when dealing with subsidiaries
8. Anti-Corruption Compliance: Compliance requirements, included for public sector or international projects
1. Schedule A - Scope of Work: Detailed description of proposed subcontracting works
2. Schedule B - Preliminary Price Schedule: Initial pricing structure and payment terms
3. Schedule C - Project Timeline: Proposed project milestones and deadlines
4. Appendix 1 - Required Documentation: List of documents required for final agreement
5. Appendix 2 - Key Personnel: List of key contacts from both parties involved in negotiations
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Manufacturing
Engineering
Information Technology
Professional Services
Energy and Utilities
Infrastructure
Telecommunications
Transportation and Logistics
Industrial Services
Mining and Resources
Renewable Energy
Relevant Teams
Legal
Procurement
Operations
Commercial
Project Management
Risk Management
Supply Chain
Business Development
Compliance
Finance
Technical Operations
Relevant Roles
Project Manager
Procurement Manager
Contract Manager
Legal Counsel
Commercial Director
Operations Manager
Technical Director
Chief Operating Officer
Business Development Manager
Risk Manager
Supply Chain Manager
Site Manager
Construction Manager
Account Executive
Compliance Officer
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