Despite attracting a certain wariness from some in the development sector, letters of intent are in broad use. Construction projects involve moving parts, which can be complex and, notoriously, subject to delay.
However, experienced parties know that while particular hurdles are tackled, other aspects can progress. For example, even if commencement of works is held up by the client and contractor hammering out the last dregs of the contract price, this need not prevent site preparation works being undertaken in the meantime. Moreover, key components, such as lifts, must be ordered and manufactured in good time to avoid causing delays.
A letter of intent permits these construction activities to be carried out and paid for while the parties continue to conclude the building contract.
In 2017 the City of London Law Society (CLLS) published the first standard form letter of intent. The document is now being updated as a 2024 edition.
In light of this change, Francis Ho, Partner, and Katherine Keenan, Senior Associate, both in our Construction, Engineering & Projects team, write an article for Property Week, in which they run through the changes to these standard form documents, and what businesses operating in the sector need to know.
Read the full article in Property Week here.
