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 start late or no contract, neither of which are great results
  • Wrong for a contractor means the full contract is never signed. Either the contractor has no obligation to continue the project, or it does and there is no method of calculating a price for the works completed.
  • Wrong for the contract administrator means allowing works to continue under a letter of intent, which is negligent.
  • Wrong for a funder means lending money when there is no real contract, no warranties or TPR and the risks to its borrower are too high.
  • 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 if you need more help.

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