A Construction Letter of Intent (LoI) is a crucial pre-contractual document used in Austrian construction projects when parties need to commence certain preliminary activities before finalizing the main construction contract. It is particularly relevant in time-sensitive projects or when early works are required while detailed terms are still being negotiated. The document, governed by Austrian law, typically includes provisions for preliminary works authorization, cost allocation, and termination rights, while clearly distinguishing between binding and non-binding elements. It must comply with Austrian civil law principles, particularly regarding pre-contractual obligations under the ABGB, and considers relevant construction regulations and building codes. The LoI serves as a bridge between initial negotiations and the final construction contract, providing legal protection for both parties during this interim period.
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1. Date and Parties: Identification of all parties involved, including full legal names, registration numbers, and addresses
2. Background/Recitals: Brief description of the proposed project, current status, and purpose of the LoI
3. Definitions: Key terms used throughout the document
4. Purpose and Scope: Clear statement of the LoI's purpose and extent of preliminary commitments
5. Duration: Validity period of the LoI and conditions for extension
6. Permitted Preliminary Works: Specific activities authorized under the LoI before the main contract is signed
7. Cost Allocation: Responsibility for costs incurred during the LoI period and payment terms
8. Binding and Non-Binding Elements: Clear distinction between which provisions are legally binding and which are subject to further negotiation
9. Confidentiality: Obligations regarding confidential information exchanged during the LoI period
10. Termination Rights: Conditions under which either party may terminate the LoI
1. Exclusivity: Used when parties want to ensure exclusive negotiations during the LoI period
2. Insurance Requirements: Include when preliminary works require specific insurance coverage
3. Intellectual Property Rights: Necessary when design work or technical solutions are being developed during the LoI phase
4. Parent Company Guarantee: Include when financial security is required for the preliminary works
5. Dispute Resolution: Optional detailed dispute resolution procedures for the LoI period
6. Site Access: Include when contractor requires access to the site during the LoI period
1. Scope of Preliminary Works: Detailed description of authorized preliminary activities
2. Preliminary Programme: Timeline for activities during the LoI period
3. Preliminary Budget: Estimated costs for works under the LoI
4. Key Personnel: List of key personnel from both parties involved in the preliminary phase
5. Form of Main Contract: Draft or outline of the proposed main construction contract
6. Site Plan: Relevant drawings or plans if site access is required
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Commercial Property
Industrial Development
Residential Development
Infrastructure
Healthcare Construction
Retail Development
Hospitality Construction
Educational Facilities
Relevant Teams
Legal
Construction
Development
Commercial
Procurement
Risk Management
Project Management
Operations
Technical
Contracts Administration
Relevant Roles
Construction Project Manager
Development Director
Legal Counsel
Contract Manager
Commercial Director
Chief Operating Officer
Construction Director
Property Development Manager
Head of Construction
Project Director
Risk Manager
Procurement Manager
Technical Director
Senior Project Manager
Construction Lawyer
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