The Letter of Intent Engineering is a crucial preliminary document used in Saudi Arabia when parties wish to formally express their intention to enter into an engineering services agreement while maintaining flexibility for detailed negotiations. It serves as a stepping stone between initial discussions and a final contract, particularly common in large-scale engineering projects where detailed agreements may take considerable time to negotiate. The document must align with Saudi law, including compliance with Sharia principles and the Saudi Council of Engineers' regulations. It typically includes project scope, key commercial terms, timelines, and any binding preliminary obligations such as confidentiality or exclusivity provisions. This document type is particularly relevant in Saudi Arabia's rapidly developing infrastructure and industrial sectors, where complex engineering projects often require careful preliminary framework setting.
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1. Date and Parties: Identification of all parties including full legal names, addresses, and registration details
2. Introduction: Brief statement of intent to enter into negotiations/agreement for the engineering project
3. Project Overview: High-level description of the proposed engineering project, including location and basic scope
4. Proposed Terms: Outline of key commercial terms including estimated project value and timeline
5. Confidentiality: Binding provisions regarding confidential information exchange
6. Exclusivity: If applicable, period during which parties agree not to negotiate with others
7. Duration: Validity period of the LOI and any key milestone dates
8. Non-Binding Nature: Clear statement of which provisions are non-binding vs binding
9. Governing Law: Specification of Saudi law and Sharia compliance
10. Signatures: Execution block for authorized signatories
1. Cost Sharing: Used when parties agree to share costs during the preliminary phase
2. Due Diligence: Include when specific due diligence requirements need to be outlined
3. Interim Arrangements: Used when temporary working arrangements need to be established
4. Break Fee: Include when parties agree to compensation if negotiations fail under specific circumstances
5. Local Content Requirements: Include for projects subject to Saudi Aramco or government local content requirements
6. Dispute Resolution: Optional section for specifying preliminary dispute resolution mechanisms
1. Project Scope Overview: High-level technical description of the engineering project
2. Timeline: Proposed schedule for negotiation and project implementation phases
3. Key Commercial Terms: Summary of main commercial points to be negotiated
4. Required Approvals: List of necessary regulatory and governmental approvals
5. Key Personnel: List of key team members and their roles if relevant to the preliminary phase
Relevant legal definitions
Clauses
Relevant Industries
Oil & Gas
Construction
Infrastructure
Energy
Manufacturing
Mining
Petrochemicals
Utilities
Transportation
Industrial Development
Real Estate Development
Defense
Relevant Teams
Legal
Engineering
Commercial
Business Development
Operations
Project Management
Technical
Procurement
Risk & Compliance
Corporate Development
Strategy
Relevant Roles
Chief Executive Officer
Managing Director
Engineering Director
Project Manager
Commercial Manager
Legal Counsel
Contract Manager
Business Development Director
Technical Director
Chief Technical Officer
Operations Director
Engineering Manager
Procurement Manager
Risk Manager
Compliance Officer
Development Director
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