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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."
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
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
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
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
Legal
Construction
Project Management
Commercial
Operations
Business Development
Procurement
Risk Management
Technical Services
Contract Administration
Corporate Development
Executive Leadership
Finance
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
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