ABSTRACT

The idea of a letter of intent is straightforward. It tells the contractor that the employer is not in a position to enter into a contract for the work but that work can begin and be carried out in accordance with the drawings and specification; if the employer has to stop the work, the contractor can be paid for what has been carried out. The employer needs to know the extent of any financial liability. In law, a contractor's tender is an offer capable of being accepted by the employer. Tenders were invited on the basis of the JCT Standard Form of Building Contract with Contractor's Design. In practice, a building contract is usually prepared by the employer's professional advisers, normally by either the architect or the quantity surveyor. Ideally, it should be prepared by the architect because the architect is the person who is going to have to administer it.