A Letter Of Intent Project Management agreement is commonly used in the UAE as a preliminary step before entering into a comprehensive project management agreement. This document is particularly relevant when parties need to formalize their initial understanding while allowing time for due diligence, detailed scope definition, and negotiation of final terms. Under UAE law, while generally non-binding in nature (except for specific provisions like confidentiality), it serves as an important tool for documenting key commercial terms and conditions precedent to a final agreement. The document typically includes preliminary scope of services, proposed fee structures, timeline expectations, and any exclusivity arrangements, while considering UAE-specific legal requirements and business practices. It's particularly useful in complex projects where detailed agreement negotiations may take considerable time, or when certain approvals or conditions need to be met before proceeding with a final contract.
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1. Sender and Recipient Details: Full legal names and addresses of both parties
2. Project Identification: Clear identification of the project scope and location
3. Expression of Intent: Clear statement of intention to appoint the project manager subject to conditions
4. Scope of Services: High-level outline of the project management services to be provided
5. Commercial Terms: Preliminary agreement on key commercial terms including fee structure
6. Duration and Timeline: Proposed project timeline and duration of services
7. Key Conditions: Essential conditions that need to be met before proceeding to final agreement
8. Binding Provisions: Clear statement of which provisions are intended to be binding
9. Expiry Date: Validity period of the LOI
10. Next Steps: Process for moving forward to definitive agreements
1. Exclusivity: Include when parties agree to negotiate exclusively for a defined period
2. Confidentiality: Include when sensitive information will be shared during negotiations
3. Cost Allocation: Include when parties need to specify who bears costs during the LOI period
4. Break Fee: Include when there's agreement on compensation if either party withdraws
5. Governing Law: Include when parties want to specify applicable law for binding provisions
6. Dispute Resolution: Include when parties want to specify how disputes during LOI period will be handled
1. Project Brief: Detailed description of the project scope and objectives
2. Preliminary Services Schedule: Detailed outline of proposed project management services
3. Preliminary Fee Schedule: Proposed fee structure and payment terms
4. Key Personnel: List of key project management team members and their roles
5. Project Timeline: Preliminary project schedule and key milestones
6. Required Approvals: List of necessary permits, approvals, and authorizations
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Infrastructure
Energy
Technology
Healthcare
Education
Hospitality
Industrial
Transport
Telecommunications
Mixed-use Development
Retail
Relevant Teams
Legal
Commercial
Project Management Office
Operations
Finance
Business Development
Construction
Technical
Procurement
Risk Management
Executive Leadership
Relevant Roles
Project Director
Commercial Director
Chief Executive Officer
Managing Director
Project Manager
Legal Counsel
Contract Manager
Development Director
Operations Director
Chief Operating Officer
Program Manager
Construction Manager
Technical Director
Finance Director
Chief Financial Officer
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