Document background
The Subcontractor Letter of Intent is a crucial document in UAE construction and development projects, typically used when there is a need to establish preliminary commitments or commence urgent works before a full subcontract is finalized. This document type is particularly relevant in the UAE's fast-paced construction sector, where project timelines often require quick mobilization of subcontractors. The LOI provides a legally recognized framework under UAE law for preliminary engagements, outlining essential terms such as scope, pricing, and timelines while protecting both parties' interests during the pre-contract phase. It must comply with UAE Civil Code requirements regarding preliminary agreements and should clearly distinguish between binding and non-binding elements. The document serves as a bridge between initial negotiations and the final subcontract, often used in large-scale construction projects where complex approval processes might delay final contract execution.
