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Subcontractor Letter Of Intent for New Zealand

Subcontractor Letter Of Intent Template for New Zealand

A Letter of Intent (LOI) issued to a subcontractor under New Zealand law, serving as a preliminary agreement that outlines the intention to enter into a formal subcontract while potentially authorizing certain preliminary works. The document incorporates key provisions from New Zealand's Construction Contracts Act 2002 and related legislation, establishing interim arrangements, defining preliminary scope, and setting out commercial terms. It provides a framework for commencing urgent or preliminary works while the full subcontract documentation is being finalized, balancing practical commercial needs with legal requirements specific to the New Zealand construction industry.

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What is a Subcontractor Letter Of Intent?

The Subcontractor Letter of Intent is a critical document used in New Zealand's construction and project-based industries when there is a need to initiate subcontractor engagement before finalizing comprehensive subcontract documentation. It serves as a bridge between initial negotiations and the formal subcontract, particularly useful in time-sensitive projects or when early contractor involvement is essential. The document typically includes preliminary scope definition, basic commercial terms, and authorization for specific pre-contract activities, while clearly delineating binding and non-binding elements. Operating under New Zealand jurisdiction, it must align with the Construction Contracts Act 2002 and related legislation, providing both parties with sufficient clarity and protection during the interim period. This type of document is particularly relevant in complex projects where staged contracting approaches are necessary or where early works need to commence while detailed terms are being negotiated.

What sections should be included in a Subcontractor Letter Of Intent?

1. Date and Address Block: Formal letter heading including sender's details, recipient's details, and date

2. Project Identification: Clear identification of the project, its location, and relevant reference numbers

3. Intent Declaration: Clear statement of intention to enter into a subcontract, subject to conditions

4. Scope of Works: Brief but clear description of the intended subcontract works

5. Commercial Terms: Key commercial terms including preliminary price indication and payment terms

6. Duration: Expected timeline for works and validity period of the LOI

7. Pre-Contract Services: Any immediate works or services authorized under the LOI

8. Binding Terms: Clear statement of which provisions are intended to be legally binding

9. Conditions: Key conditions that need to be satisfied before proceeding to full subcontract

10. Signature Block: Space for signatures of both parties to confirm acceptance

What sections are optional to include in a Subcontractor Letter Of Intent?

1. Confidentiality Provisions: Include when sensitive information will be shared during the LOI period

2. Insurance Requirements: Include when immediate work will commence under the LOI

3. Health and Safety Requirements: Include when immediate site access or works are required

4. Intellectual Property Rights: Include when design work or intellectual property will be created during the LOI period

5. Termination Rights: Include when the LOI period is lengthy or significant costs might be incurred

6. Dispute Resolution: Include when significant preliminary works are authorized

What schedules should be included in a Subcontractor Letter Of Intent?

1. Preliminary Scope of Works: Detailed description of the intended works, if too lengthy for main letter

2. Preliminary Programme: Initial project timeline and key milestones

3. Pricing Schedule: Breakdown of preliminary pricing and rates

4. Key Personnel: List of key personnel and their roles from both parties

5. Site Access Requirements: Specific requirements for site access during the LOI period

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions






























Clauses

























Relevant Industries

Construction

Infrastructure

Engineering

Mining

Property Development

Commercial Fit-out

Industrial Installation

Energy and Utilities

Telecommunications

Marine and Port Development

Relevant Teams

Legal

Commercial

Procurement

Operations

Project Management

Construction Management

Contract Administration

Risk Management

Finance

Technical Services

Relevant Roles

Construction Manager

Project Manager

Commercial Manager

Contracts Manager

Procurement Manager

Quantity Surveyor

Legal Counsel

Operations Director

Site Manager

Project Director

Commercial Director

Subcontract Administrator

Risk Manager

Technical Director

Chief Operating Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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