There are obvious and well-documented risks associated with contracting on the basis of a letter of intent (LOI).
What is less obvious is that different forms of contract raise particular challenges when it comes to framing LOIs. This was brought home to me recently when I looked at an LOI for works to be let under an NEC3 Engineering and Construction Contract (ECC). It quickly became clear that LOIs need careful handling where the “intended” contract is an NEC contract. Continue reading