LETTERS OF INTENT –

THE RECIPE FOR DISASTER !

1. A “letter of INTENT” is WORTHLESS on its own.

2. Unless it INSTRUCTS you to do something.

3. What you NEED is a letter of INSTRUCTION!

4. If it is just a letter of INTENT, with NO INSTRUCTION, it cannot be “made better” by anything YOU do in response.

5. If you need a letter of INSTRUCTION, then you must ASK for one, and DO NOTHING UNTIL YOU GET IT!

6. If the letter of instruction/intent leaves matters outstanding TO BE AGREED then NO CONTRACT EXISTS until they are AGREED.

7. If NO CONTRACT exists, then you would still be paid – but on a QUANTUM, MERUIT – “what it is worth” (not the same as cost plus, but probably Spons or similar).

8. If NO CONTRACT EXISTS, then there is NO ACCESS to the CONSTRUCTION ACT.

IN A NUTSHELL – TRY TO RESTRICT THE WORK YOU DO ON THESE “MICKEY MOUSE” LETTERS !

THEY ARE OFTEN USELESS, AND CAN ONLY HARM YOU LATER ON!

TRY TO GET AN OFFICIAL ORDER BEFORE YOU START WORK.

John Russell

Construction Contracts & Training Consultants (Established 1984)

Cheshire CW4 7DP Tel : 07770 986444

Email : swsubbie@globalnet.co.uk Website: www.jrconsultant.co.uk

“Jack Russell” of the Electrical Times and author of “The Streetwise Subbie”