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Letter Of Intent For Subcontractor for Saudi Arabia

Letter Of Intent For Subcontractor Template for Saudi Arabia

A Letter of Intent for Subcontractor is a preliminary document used in Saudi Arabia that outlines the intention to enter into a formal subcontract agreement between a main contractor and a subcontractor. The document, governed by Saudi Arabian law and Sharia principles, establishes the basic terms and conditions of the proposed relationship while typically specifying which provisions are binding and non-binding. It serves as a framework for the eventual formal subcontract and may authorize preliminary works while the main agreement is being finalized. The document must comply with Saudi Arabian regulations, including the Government Tenders and Procurement Law and relevant construction sector regulations.

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What is a Letter Of Intent For Subcontractor?

A Letter of Intent for Subcontractor is commonly used in Saudi Arabian construction and development projects when a main contractor needs to secure a subcontractor's services while the detailed formal agreement is being prepared. This document type is particularly important in the Saudi Arabian context, where projects often involve complex regulatory requirements and multiple stakeholder approvals. It typically includes key commercial terms, project scope, timeline commitments, and any authorized preliminary works. The LOI helps expedite project initiation while ensuring compliance with Saudi law, including the Government Tenders and Procurement Law, Labor Law, and relevant industry regulations. It's especially valuable in time-sensitive projects or when preliminary works need to commence before finalizing the comprehensive subcontract agreement. The document should clearly distinguish between binding and non-binding provisions to protect all parties' interests during the interim period.

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

1. Date and Address Block: Formal letter heading including date and parties' addresses

2. Subject Line: Clear identification of the project and purpose of the letter

3. Opening Statement: Formal introduction establishing the parties and their roles

4. Project Overview: Brief description of the main project and scope of work

5. Expression of Intent: Clear statement of intention to enter into a formal subcontract

6. Key Commercial Terms: Basic outline of essential commercial terms including pricing structure

7. Timeline: Expected dates for formal agreement and project commencement

8. Conditions Precedent: Key conditions that must be met before formal agreement

9. Confidentiality: Basic confidentiality obligations regarding project information

10. Non-Binding Statement: Clear statement of which provisions are binding and non-binding

11. Duration of Offer: Validity period of the letter of intent

12. Closing and Signatures: Formal closing, signature blocks, and witness requirements

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

1. Exclusivity: Terms preventing the subcontractor from engaging with other contractors for this project

2. Preliminary Works: Authorization and terms for any immediate work to be commenced

3. Payment Terms for Preliminary Works: If preliminary works are authorized, specific payment terms for these works

4. Governing Law Declaration: Explicit statement of Saudi law application, used when working with international subcontractors

5. Language Requirements: Specification of official language(s) for communication and documentation

6. Dispute Resolution: Preliminary agreement on handling disputes during the LOI period

7. Insurance Requirements: Preliminary insurance requirements if work is to commence before formal agreement

8. Termination Rights: Specific conditions under which either party can terminate the LOI

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

1. Schedule A - Scope of Work: Preliminary outline of the subcontractor's scope of work

2. Schedule B - Commercial Terms: Detailed breakdown of proposed pricing and payment terms

3. Schedule C - Project Timeline: Preliminary project schedule and key milestones

4. Schedule D - Required Documentation: List of documents required from subcontractor (licenses, certificates, etc.)

5. Appendix 1 - Key Personnel: List of key personnel from both parties involved in the project

6. Appendix 2 - Technical Requirements: Preliminary technical specifications and requirements

7. Appendix 3 - Form of Subcontract: Draft or outline of the proposed formal subcontract agreement

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

Saudi Arabia

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions






























Clauses





























Relevant Industries

Construction

Infrastructure Development

Oil & Gas

Real Estate Development

Industrial Projects

Energy

Transportation

Manufacturing

Technology Implementation

Healthcare Construction

Education Facilities

Telecommunications

Relevant Teams

Legal

Procurement

Operations

Commercial

Project Management

Construction Management

Risk & Compliance

Contract Administration

Technical Services

Business Development

Relevant Roles

Project Manager

Construction Manager

Contracts Manager

Legal Counsel

Commercial Director

Procurement Manager

Operations Director

Technical Director

Chief Operating Officer

Site Manager

Quantity Surveyor

Business Development Manager

Risk Manager

Compliance 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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