The Construction Letter of Intent is a crucial document in the Nigerian construction industry, typically used during the transition period between project award and the execution of a full construction contract. It enables parties to commence urgent or preliminary works while detailed contract terms are being negotiated. The document must align with Nigerian construction laws, including the National Building Code 2006 and relevant state-specific regulations. While primarily serving as an interim agreement, the Construction Letter of Intent often includes binding provisions regarding payment terms, scope of authorized works, and liability allocation. It's particularly relevant in time-sensitive projects where early commencement is essential, and in situations involving complex regulatory approvals or multiple stakeholders.
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1. Letter Header: Date, recipient details, and project reference
2. Project Identification: Clear identification of the construction project, including location and basic scope
3. Intent Statement: Clear statement of intention to enter into a formal contract and the purpose of the LOI
4. Scope of Interim Works: Specific works authorized to be undertaken under the LOI
5. Duration and Validity: Period for which the LOI is valid and conditions for extension
6. Commercial Terms: Interim payment terms, rates, and maximum authorized expenditure under the LOI
7. Key Deliverables: Expected deliverables during the LOI period
8. Legal Status: Clear statement on binding/non-binding nature of various provisions
9. Termination Rights: Conditions under which either party can terminate the LOI
10. Governing Law: Confirmation of Nigerian law as governing law and jurisdiction
1. Confidentiality: Required if sensitive information will be shared during the LOI period
2. Insurance Requirements: Include if work will commence under the LOI
3. Health and Safety: Required if physical works will commence under the LOI
4. Local Content Requirements: Include for projects subject to Nigerian local content laws
5. Dispute Resolution: Optional but recommended for LOIs covering substantial works or longer periods
6. Environmental Compliance: Include if works under LOI have environmental implications
1. Schedule 1 - Scope of Works: Detailed description of authorized interim works
2. Schedule 2 - Rates and Prices: Agreed rates and prices for the interim works
3. Schedule 3 - Key Personnel: List of key personnel authorized to manage and execute the works
4. Schedule 4 - Site Access Requirements: Site access protocols and requirements if applicable
5. Schedule 5 - Form of Final Contract: Draft or outline of the intended final contract, if available
6. Appendix A - Project Timeline: Preliminary project schedule and milestones
7. Appendix B - Technical Specifications: Any specific technical requirements for the interim works
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Infrastructure Development
Oil and Gas Construction
Industrial Construction
Healthcare Facilities
Educational Facilities
Retail Development
Transportation Infrastructure
Energy and Power Plants
Mining Infrastructure
Telecommunications Infrastructure
Relevant Teams
Legal
Commercial
Operations
Project Management
Procurement
Finance
Risk and Compliance
Technical
Business Development
Construction Operations
Contract Administration
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Commercial Director
Chief Executive Officer
Operations Director
Project Engineer
Quantity Surveyor
Procurement Manager
Risk Manager
Development Director
Technical Director
Chief Financial Officer
Site Manager
Compliance Officer
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