A Construction Letter of Intent is commonly used in Irish construction projects when there is a need to commence works or secure resources before finalizing the main construction contract. This document is particularly relevant when there are time pressures to begin certain aspects of the project, such as design work, site preparation, or long-lead item procurement. The LOI must carefully balance the need for project progression with legal certainty, clearly defining the scope of authorized works, payment terms, and duration. Under Irish law, particularly considering the Construction Contracts Act 2013, the document must include specific payment provisions and clearly state its interim nature. While allowing work to commence, it should not inadvertently create a binding contract for the entire project scope. The document typically includes provisions for termination, liability limits, and conditions for transitioning to the main 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 including location and brief description of works
3. Scope of Authorized Works: Detailed description of specific works authorized under the LOI
4. Duration and Validity: Clear statement of LOI validity period and expiry date
5. Payment Terms: Specific payment provisions for authorized works, including payment mechanism and timing
6. Contract Value Indication: Anticipated overall contract sum and any cost limits for works under the LOI
7. Conditions Precedent: Any conditions that must be met before the LOI becomes effective
8. Termination Provisions: Rights and process for terminating the LOI
1. Design Responsibilities: Include when design works are part of the authorized preliminary works
2. Insurance Requirements: Include when specific insurance coverage needs to be in place before work commences
3. Site Access Provisions: Include when immediate site access is required and needs to be regulated
4. Confidentiality Obligations: Include when sensitive information will be shared during the LOI period
5. Dispute Resolution: Include when specific dispute resolution procedures are required for the LOI period
6. Parent Company Guarantee: Include when financial security is required even during the LOI period
1. Schedule 1 - Scope of Authorized Works: Detailed breakdown of works authorized under the LOI
2. Schedule 2 - Payment Schedule: Detailed payment terms, rates and mechanisms for the LOI period
3. Schedule 3 - Programme of Works: Timeline and key milestones for the authorized preliminary works
4. Schedule 4 - Key Personnel: List of key personnel from both parties involved in the preliminary works
5. Appendix A - Site Plans: Relevant drawings and plans for the authorized works
6. Appendix B - Form of Warranty: Template warranties required for any design or permanent works under the LOI
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Development
Industrial Construction
Healthcare Construction
Educational Facilities
Retail Development
Public Works
Energy Infrastructure
Relevant Teams
Legal
Construction
Commercial
Procurement
Operations
Finance
Risk Management
Project Management
Technical Services
Business Development
Relevant Roles
Construction Director
Project Manager
Commercial Manager
Contract Manager
Quantity Surveyor
Construction Manager
Legal Counsel
Development Director
Procurement Manager
Risk Manager
Chief Executive Officer
Operations Director
Financial Controller
Technical Director
Design Manager
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