The Letter Of Intent To Award Construction Contract is a crucial document in Saudi Arabian construction projects, serving as a bridge between bid acceptance and formal contract execution. It is typically used after the completion of tender evaluation and internal approval processes, but before the formal construction contract is finalized. This document outlines the employer's commitment to award the contract while establishing conditions precedent, key commercial terms, and project parameters. Under Saudi Arabian law, while not typically forming a binding contract for the full scope of works, it may create certain binding obligations between parties. The document must align with Saudi commercial law, construction regulations, and Sharia principles, particularly important in large-scale construction projects where immediate mobilization or preliminary works are required before the main contract execution.
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1. Letter Header: Official letterhead, date, reference number, and recipient's full details
2. Project Identification: Clear identification of the specific construction project, including project name, location, and reference numbers
3. Bid Reference: Reference to the contractor's bid or tender submission, including date and reference numbers
4. Intent Declaration: Clear statement of intent to award the construction contract, subject to conditions
5. Contract Value: Statement of the agreed contract sum and any applicable tax considerations
6. Key Terms: Brief outline of fundamental terms including project duration, start date, and key deliverables
7. Conditions Precedent: List of conditions that must be satisfied before the formal contract is awarded
8. Validity Period: Timeframe during which the letter of intent remains valid
9. Next Steps: Clear outline of the process toward formal contract execution
10. Authorization: Signature block with name and title of authorized signatory
1. Advance Payment: Include when advance payment is part of the agreement, specifying amount and conditions
2. Performance Security: Include when contractor must provide performance bonds or guarantees
3. Insurance Requirements: Include when specific insurance requirements need to be highlighted pre-contract
4. Confidentiality: Include when sensitive information is being shared prior to formal contract
5. Mobilization Requirements: Include when immediate mobilization is required before formal contract execution
6. Regulatory Compliance: Include when specific regulatory requirements need attention before contract award
1. Scope Summary: Brief description of the construction works to be performed
2. Key Commercial Terms: Summary of main commercial terms including payment milestones
3. Key Dates Schedule: List of critical dates and milestones
4. Required Documentation: List of documents required from contractor before formal contract award
5. Pre-Contract Conditions: Detailed list of conditions that must be met before contract signing
6. Key Personnel: List of key personnel required for the project from both parties
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Oil & Gas
Industrial Development
Healthcare
Education
Hospitality
Commercial Development
Government Infrastructure
Transportation
Energy
Mining
Relevant Teams
Legal
Commercial
Procurement
Construction
Project Management
Executive Management
Finance
Operations
Risk & Compliance
Technical
Business Development
Relevant Roles
Project Director
Construction Manager
Commercial Director
Legal Counsel
Contracts Manager
Procurement Manager
Chief Executive Officer
Managing Director
Technical Director
Project Manager
Business Development Manager
Operations Director
Chief Financial Officer
Risk Manager
Compliance Officer
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