Document background
The Letter of Intent For Construction Bidding is a critical document in the Indian construction industry that bridges the gap between bid selection and formal contract execution. It is typically issued after evaluating construction bids and selecting a preferred contractor, but before finalizing the detailed construction contract. This document, while considering Indian legal framework including the Indian Contract Act 1872 and construction industry regulations, serves multiple purposes: it confirms the selection of the preferred bidder, outlines key commercial and technical terms, establishes preliminary commitments, and sets conditions for moving forward. The LOI helps maintain project momentum while detailed contract negotiations are underway and often includes preliminary authorizations for initial project activities. It's particularly important in large-scale construction projects where the final contract negotiations may take considerable time.
