Form Letters of Intent by Crizlap

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									                                       Letter of Intent

A “letter of intent” is a written preliminary contractual document that authorizes WHOSIT
or WHOSIT’s subcontractor’s to begin work. It is customarily employed to reduce to
writing a preliminary understanding of parties who intend to enter into contract. It gives the
owner authority to proceed prior to the execution of a more formal contractual document
between both parties. In some cases, both WHOSIT and the client or WHOSIT and it’s
subcontractors, have completed or nearly completed contract negotiations and are awaiting
internal reviews and approvals. Occasionally a situation emerges rapidly which requires
immediate action. It may be more appropriate to define a specific limited scope of work and
issue a purchase order to cover the limited requirements, pending the negotiation of a
complete scope of work with complete funding.

Letters of intent should be limited in duration and total financial obligation. Letters of intent
must lead to a fully defined contract or be subject to a negotiated settlement agreement due
to the parties not reaching agreement on the continued progress of the work.

A letter of intent should be as complete and definite as possible. This may include the
general provisions for the contract type. It should definitely include a funding limitation or
ceiling not to exceed price as well as a description of a mini scope of work/schedule.

Letters of intent should be terminated and negotiated into a fully executed agreement as soon
as possible. Since a letter of intent does not include all of the standard terms and conditions
and may not allow for payment for expenditures, it is in the best interest of all parties to
finalize a negotiated agreement soon after it is issued.

A sample letter of intent follows as Attachment A.

                                       Letter of Intent

                                                1      4ace9a3a-dd49-43fc-87c8-9c4630e73a28.doc
Dismantle Consultants, Ltd.
Attn: Mr. -------- ---------------
------------, ----- ------------

Subject: Letter of Intent
       Site: --------------------------

Dear Mr. ------------------:

Whosit Construction Company has reviewed all submitted proposals for the subject
laboratory and is pleased to inform you that Dismantle Consultants, Ltd. is the apparent
successful bidder. This Letter of Intent is offered to award preliminary funding for your

You are hereby authorized to perform services as outlined in Whosit specification
# xxxxxx, part --, up to a funding limitation not to exceed $ xxx.00. The project schedule is
referenced in Whosit document # xxxxxxxxx. You should immediately submit, via fax,
your company insurance certificate, naming Whosit Construction Company and the (owner)
as additional insureds.

It is the intent of Whosit Construction Company to enter into a formal subcontract
agreement with Dismantlement Consultants, Ltd., with funding as released per a Whosit
purchase order, within four (4) weeks. The terms and conditions of the Whosit Subcontract
Agreement and Purchase Order will take precedence over this Letter of Intent.

We look forward to working with your organization on this important project. We will
contact you shortly to commence contract negotiations.

Very Truly Yours,

--------- ---- ----------
Purchasing Manager

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