Your perspective on letters of intent

When things go wrong with letters of intent, the consequences depend on which side of the project you are on.

It all depends on your perspective:

  • Wrong for a client means the project starts (and ends) late or there is no contract – no contract means it may have to pay for works which are late, defective and over-budget!
  • Wrong for a contractor means the full contract is never signed. Either the contractor has no right (and no obligation) to continue the project; or it finishes anyway and has no idea how much it will get paid for the works it has completed.
  • Wrong for the contract administrator means allowing works to continue under a letter of intent without the client understanding the risks, which may be negligent.
  • Wrong for a funder means lending money when there is no real contract, no warranties/third party rights, and the risks to its borrower are not being managed.
  • Wrong for an adviser might mean a claim for costs not recoverable against a defaulting party due to a lack of proper contract.

What should you do?

If you want to minimise letter of intent disputes, then you need to create a clear contract strategy, create a better letter of intent and use it wisely. Grab my free video series or book if you need more help.

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