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Construction Letter Of Intent Template for Saudi Arabia

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Key Requirements PROMPT example:

Construction Letter Of Intent

"I need a Construction Letter of Intent for a new industrial facility in Jubail Industrial City, Saudi Arabia, between our Saudi-registered company and a German construction contractor, with pre-construction activities to commence in March 2025 and including IKTVA compliance requirements."

Document background
A Construction Letter of Intent is a crucial preliminary document used in Saudi Arabian construction projects to initiate pre-construction activities while the main contract is being finalized. It provides a legal framework compliant with Saudi law, including Sharia principles and construction regulations, allowing parties to commence essential preliminary works while protecting their interests. The document is particularly relevant in large-scale construction projects where immediate action is required before finalizing the comprehensive construction contract. It typically includes scope limitations, payment terms, duration, and specific authorizations for pre-construction activities, while clearly delineating binding and non-binding elements. This document type is especially important in Saudi Arabia's rapidly developing construction sector, where projects often involve international contractors and need to balance local legal requirements with global construction practices.
Suggested Sections

1. Sender and Recipient Details: Full legal names and addresses of both parties, including commercial registration numbers for Saudi entities

2. Project Identification: Clear identification of the construction project, including its location and basic scope

3. Expression of Intent: Clear statement of intention to enter into a formal construction contract, subject to conditions

4. Authorized Pre-Construction Activities: Specific list of activities authorized to be undertaken before the main contract

5. Duration and Validity: Specific timeframe for the LOI's validity and conditions for extension or termination

6. Payment Terms: Clear terms for any payments to be made under the LOI, including payment mechanisms compliant with Saudi law

7. Binding/Non-Binding Elements: Clear designation of which elements of the LOI are binding and which are not

8. Governing Law and Jurisdiction: Explicit reference to Saudi Arabian law and preferred dispute resolution method

Optional Sections

1. Confidentiality Provisions: Include when sensitive technical or commercial information will be shared during the pre-construction phase

2. Insurance Requirements: Include when significant pre-construction activities require specific insurance coverage

3. Site Access Terms: Include when immediate site access is required for surveys or preliminary work

4. Local Content Requirements: Include when the project must comply with Saudi Aramco's In-Kingdom Total Value Add (IKTVA) program or other local content requirements

5. Termination Rights: Include detailed termination provisions when significant pre-construction work is authorized

6. Third-Party Approvals: Include when specific governmental or regulatory approvals are needed for pre-construction activities

Suggested Schedules

1. Scope of Pre-Construction Services: Detailed description of authorized preliminary works and deliverables

2. Preliminary Project Timeline: Basic timeline showing key milestones up to main contract signing

3. Preliminary Payment Schedule: Breakdown of any authorized payments during the LOI period

4. Key Personnel: List of key personnel authorized to act under the LOI from both parties

5. Required Permits and Licenses: List of necessary permits and licenses for pre-construction activities

6. Preliminary Design Documents: Any initial design documents or specifications that form the basis of the intent

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































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Relevant Industries

Construction

Real Estate Development

Infrastructure

Energy

Industrial Development

Commercial Property

Residential Development

Healthcare Facilities

Education Facilities

Hospitality

Mixed-use Development

Transportation

Oil & Gas

Religious Facilities

Government Buildings

Relevant Teams

Legal

Construction

Project Management

Commercial

Operations

Business Development

Procurement

Risk Management

Technical Services

Contract Administration

Corporate Development

Executive Leadership

Finance

Relevant Roles

Construction Project Manager

Legal Counsel

Contract Manager

Chief Executive Officer

Managing Director

Commercial Director

Project Director

Development Manager

Construction Manager

Chief Operations Officer

Legal Director

Head of Construction

Procurement Manager

Business Development Director

Risk Manager

Technical Director

Chief Legal Officer

Senior Project Manager

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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