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Letter Of Intent For Subcontractor for United Arab Emirates

Letter Of Intent For Subcontractor Template for United Arab Emirates

A Letter of Intent for Subcontractor is a preliminary document used in the United Arab Emirates to establish the framework for a future subcontracting relationship. This document, governed by UAE Federal Laws including the Civil Code and Commercial Code, serves as a formal expression of intent to enter into a subcontract agreement. It outlines key commercial terms, scope of work, and conditions precedent while specifying which provisions are binding and non-binding. The document is particularly important in the UAE business environment where formal documentation of intentions and preliminary agreements is highly valued in commercial relationships.

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Letter Of Intent For Subcontractor

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What is a Letter Of Intent For Subcontractor?

A Letter of Intent for Subcontractor is commonly used in the United Arab Emirates when a main contractor wishes to formally express their intention to engage a subcontractor for a specific scope of work, while detailed contract negotiations are still ongoing. This document type is particularly important in the UAE's business environment, where having formal documentation of commercial intentions is considered a crucial step in business relationships. The LOI typically precedes the main subcontract and may include both binding and non-binding provisions, serving as a bridge between initial discussions and the final agreement. It's especially relevant in time-sensitive projects where preliminary work or mobilization needs to begin before the full subcontract is finalized. The document must comply with UAE Federal Laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Code (Federal Law No. 18 of 1993), and often includes key commercial terms, timeline commitments, and any immediate obligations of the parties.

What sections should be included in a Letter Of Intent For Subcontractor?

1. Date and Parties: Full legal names and addresses of both the contractor and subcontractor

2. Project Reference: Clear identification of the main project and the portion of work being considered for subcontracting

3. Purpose Statement: Clear statement that this is a Letter of Intent and its purpose in relation to the potential subcontract

4. Scope of Work: High-level description of the intended subcontracted works

5. Commercial Terms: Preliminary pricing, payment terms, and commercial conditions

6. Timeline: Expected dates for contract negotiation, project commencement, and completion

7. Binding Provisions: Specific provisions that are intended to be legally binding (e.g., confidentiality, exclusivity if applicable)

8. Conditions Precedent: Conditions that must be met before proceeding with the final subcontract

9. Validity Period: Duration for which the LOI remains valid

10. Signatures: Execution block for both parties

What sections are optional to include in a Letter Of Intent For Subcontractor?

1. Exclusivity: Optional clause preventing the subcontractor from engaging with other contractors for this project - include if exclusivity is required

2. Mobilization: Include if early mobilization is required before the main subcontract is signed

3. Preliminary Works: Include if any works need to start before the main subcontract is signed

4. Parent Company Guarantee: Include if financial backing from a parent company is required

5. Compliance Requirements: Include if specific regulatory or project-specific compliance requirements need immediate attention

6. Currency and Tax Provisions: Include if the project involves international parties or specific tax considerations

What schedules should be included in a Letter Of Intent For Subcontractor?

1. Schedule A - Preliminary Scope of Works: Detailed description of the works to be performed under the eventual subcontract

2. Schedule B - Preliminary Bill of Quantities: Initial pricing breakdown and quantities

3. Schedule C - Project Timeline: Preliminary project schedule and key milestones

4. Appendix 1 - Key Personnel: List of key personnel from both parties involved in the negotiation and project execution

5. Appendix 2 - Required Documentation: List of documents required from the subcontractor (licenses, certificates, etc.)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions






























Clauses





























Relevant Industries

Construction

Engineering

Real Estate Development

Infrastructure

Oil & Gas

Manufacturing

Technology Implementation

Telecommunications

Energy

Industrial Development

Relevant Teams

Legal

Commercial

Procurement

Operations

Project Management

Construction Management

Contract Administration

Technical

Risk & Compliance

Supply Chain

Finance

Relevant Roles

Project Director

Commercial Manager

Contracts Manager

Procurement Manager

Legal Counsel

Project Manager

Construction Manager

Operations Director

Chief Operating Officer

Technical Director

Bid Manager

Quantity Surveyor

Risk Manager

Supply Chain Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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