Document background
The Subcontractor Letter of Intent is commonly used in Hong Kong's construction industry when there is a need to commence subcontract works before finalizing the full subcontract documentation. This document serves as a bridging agreement, typically issued by main contractors to subcontractors, authorizing the commencement of specific works or preparations while detailed terms are being negotiated. The LOI includes essential elements such as scope description, pricing basis, payment terms, and duration, while being governed by Hong Kong law. It's particularly valuable in fast-tracked projects or when early engagement of subcontractors is critical for project success. The document provides temporary contractual protection while limiting exposure for both parties, usually with a defined validity period or maximum commitment value.
