Document background
The Construction Letter of Intent is a crucial document in Indian construction projects, typically used when there is a need to commence preliminary construction activities while the main contract is being finalized. It serves as a bridge document between initial agreement and final contract execution, particularly important in time-sensitive projects or where early mobilization is required. The LOI must comply with Indian Contract Act requirements and relevant construction regulations, providing clear authorization for specific activities while protecting both parties' interests. It typically includes essential elements such as scope definition, commercial terms, timeline, and conditions for conversion to a full contract, while ensuring compliance with state-specific building codes and environmental regulations. This document is particularly relevant in large-scale construction projects where the final contract negotiations may take considerable time but where preliminary work needs to begin to maintain project schedules.
