We have been issued a letter of intent to award us with a scheme, its not a massive scheme but around £100,000.
Its an NEC 3 Short form contract
On the letter of intent to award, the client has stated we need to send insurances, iso certificates and also provide a Construction Phase Plan and also take out all risks insurance in a joint name policy, send it as evidence , before they will issue a formal award letter.
I have no problems sending insurance and iso certificates, but what about the construction phase plan and joint name insuarances. They both have time and cost associated with them.
Can they actually request this in a letter of intent or would we be in correct in saying these document’s will be sent once a contract is awarded.
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It will depend on the wording of the letter of intent. Some letters of intent are so detailed that they are pretty much contracts in themselves. Others will be letters of intent, but will allow for payments to be made up to a cap stated in the letter of intent. If there is nothing like that in yours and it is not a contract then you have no obligation to provide the information until the contract is in place. I suggest your next step would be to have a conversation with the other party explaining that you’re happy to provide things that do not cost you money, such as insurance, but are not willing to provide things that will cost time and money without a commitment from the other party to pay you for it.
Their response to that will give you some guidance as to what they will be like to deal with throughout the remainder of the project.
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Thanks for this Steve appreciate the reply
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