Sealed With The Best Intentions

摘要

Letters of intent help work to start on projects before all the contractual arrangements are in place. However, if not properly thought out, they can cause more problems than they solve. Carefully consider the payment provisions under any letter of intent - contractors will want to ensure they know how much will be paid and when, and clients will want to limit their exposure. Therefore, make sure that an appropriate payment mechanism is included.This is often expressed as being in accordance with the terms of the intended contract. Check this is adequate, especially where changes are proposed to payment terms. Contractors should make sure any limit on the sum payable under the letter is generous enough to allow the work to be carried out. If further work is carried out, they will be at risk of non-payment.