NEC SC Letter of Intent CE's

Good afternoon,

Whilst I am aware of what an Letter of Intent is and it’s purpose, until this past week, I had no experience working with one (my company being the Employer).

At the time of tender, the supplier submitted a price, which was acceptable. However due to the nature of the works and time constraints, it was deemed a LOI was to be issued in order for the procurement of long lead materials that are to be fabricated off-site.

Within the LOI, it states the intention to engage on a NEC Supply Contract.

However, once the Supplier signed the LOI, they issued a CE saying at the time of tender, they didn’t know they were going to be working on a NEC Supply Contract and therefore hadn’t allowed for the personnel to deal with the administration of the contract i.e. a QS, Commercial Manager, Planner and ‘Labour’(not yet explained what the additional labour is for).

My question, or my thought is, at the time of issuing the LOI, the Supplier was made aware of the intention of working on a NEC Supply Contract and therefore knew what they were signing up to?

The Supplier has referred to clause 60.1 (5) and (7) however there is nothing within the Goods Information to state otherwise and similarly can clause 60.1 (7) be applied as no communication was issued to the Supplier to suggest otherwise.

Your thoughts would be appreciated.

Thank you.