Letters of Intent and all that….

Now here’s a thing who works on a letter of intent….no one in their right mind would? Surely?

Ah but oh yes we do, and there are lots of you out there doing it.

We did a state of the economy survey at the beginning of this year (we’ll do another one next year) and a massive 75% of respondents said they worked on them…….so what of the pitfalls?

Why do we do it? We haven’t got time……then make time I say, it’s so vitally important to establish the correct contract at the outset.

If you find you really really must, then use them ever so sparingly……make sure that if you do enter into such an agreement that the formal contract is executed as quickly as possible thereafter, and at least before the expiration of any financial cap or time limit you have imposed/agreed to and that you include provisions for ‘what if’ it all goes wrong too.

Otherwise if you fall out…….. you could be asking yourself……
what are the terms
have they been varied
did you do what was agreed
have there been subsequent variations to it
were the variations recorded and agreed
was the original letter of intent revised/amended
if so by whom
did they have the authority to do that
was it sent correctly
did you receive it
have you been paid by the terms
do we pay/charge VAT
did we sign a copy
have we got a copy of the letter
is there a dispute
what mechanism is there to resolve disputes ………..

And then you’ll be asking yourself why on earth did we start on a letter of intent and not get the contract sorted in the first place?

If you wanted some further examples of cases to read when things went wrong then have a read of this! (number 4 on the list)

Happy reading……of your contract that is!

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About Me

I’m now the Managing Director of Mynott Associates Limited my own specialist measurement business. I’ve been in the industry all of my life since I left school. My first job was with Bovis Construction as a management trainee where I trained to become a quantity surveyor. I’ve worked for contractors all through my career, I am FRICS, FCIOB and MCIHT qualified and act as an RICS assessor. I’m also a keen Arsenal supporter having followed them from a young boy

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