The Letter Of Intent For House (Construction) is a crucial preliminary document used in the Philippine construction industry when a property owner intends to engage a contractor for house construction but both parties need a formal expression of intent before proceeding with a detailed construction contract. This document typically precedes the main construction agreement and is particularly important in the Philippines, where it helps establish clear communication and basic understanding between parties while adhering to local construction laws and regulations. The document serves multiple purposes: it demonstrates serious intent to proceed with the project, outlines basic agreed-upon terms, and provides a framework for developing the final construction contract. While not legally binding for the entire construction project, it may contain certain binding elements such as exclusivity periods or preliminary payment terms. The document must comply with Philippine Civil Code requirements for contract formation and consider local building regulations.
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1. Date and Parties: Identification of the property owner/client and the intended contractor, including complete names, addresses, and contact information
2. Project Overview: Brief description of the construction project, including the property location and general scope of work
3. Proposed Timeline: Expected start date and estimated duration of the construction project
4. Preliminary Cost Estimate: Indicative budget or price range for the construction project
5. Basic Terms and Conditions: Fundamental terms including payment structure, quality standards, and major deliverables
6. Next Steps: Process for moving forward, including timeline for formal contract preparation
7. Validity Period: Duration for which the Letter of Intent remains valid
8. Signatures: Space for dated signatures of both parties
1. Preliminary Design Concepts: Include when initial architectural or design concepts have been discussed and need to be referenced
2. Special Requirements: Add when there are specific technical requirements or unique features of the construction project
3. Contingencies: Include when certain conditions must be met before proceeding (e.g., securing permits, financing approval)
4. Exclusivity Period: Add when the property owner wants to commit to exclusive negotiations with the contractor for a specified period
5. Preliminary Material Specifications: Include when specific materials or quality standards have been preliminarily agreed upon
6. Environmental Considerations: Add when there are specific environmental requirements or concerns that need to be addressed
1. Preliminary Site Plan: Basic layout or sketch of the proposed construction site and building footprint
2. Initial Cost Breakdown: Preliminary breakdown of major cost components for the construction project
3. Proposed Construction Schedule: High-level timeline showing major construction phases and milestones
4. Required Permits List: List of necessary permits and approvals required for the construction project
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Architecture
Legal Services
Engineering
Property Development
Residential Construction
Building Materials
Relevant Teams
Legal
Construction Management
Project Management
Real Estate Development
Architecture
Engineering
Contract Administration
Property Management
Estimating
Business Development
Relevant Roles
Construction Manager
Project Manager
Property Developer
Real Estate Lawyer
Architect
Civil Engineer
Construction Site Supervisor
Contract Administrator
Legal Counsel
Property Owner
Building Contractor
Quantity Surveyor
Real Estate Agent
Construction Estimator
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