[EMPLOYER’S LETTERHEAD]

LETTER OF INTENT
Name of Contract: ________________________________________________________

Project: ________________________________________________________

To: ________________________________________________________

Date: ________________________________________________________

Reference: ________________________________________________________

Dear Sirs,

Subject to the satisfactory conclusion of all technical and commercial negotiations with your
Company, including the finalization of the Contract Agreement for the [design, execution,
and completion] of the Works comprising the above-named Contract, we would like to
confirm our intention to place a Contract with your esteemed company for the [design,
execution, and completion] of such Works, all as included in your Tender ref.
_________________, subsequent negotiations, correspondences, clarifications, and final
Tender offer ref. ____________________ dated ___________________.

In the meantime, you are invited to proceed with the ___________________ works only,
which shall include without limitation the ________________________________________,
as well as any other preparatory works as appropriate. Save insofar for such works, the
Contractor shall not commence or execute any [procurement, fabrication, or construction
related works], pending a formal Contract Agreement being concluded with the Employer.

The value of Work to be carried out under this Letter of Intent shall not exceed US Dollars
Only_________________________________________________ (US$_______________)
Excluding VAT, pending signature of the forthcoming Contract Agreement under
preparation.

The Works done under this instruction shall be subject to, and carried out in conformity with
the following documents: -

a) The Conditions of Contract

b) The Specifications,
c) The Drawings, and
d) The completed Schedules which includes the Bill of Quantities,
e) [Add or delete documents as appropriate]

The Time for Completion of the Works executed under this LOI, shall be ______ calendar
days calculated from the Commencement Date. For the purposes of this LOI, the
Commencement Date shall be Seven (7) days from the date of acceptance and signature of
this LOI by Contractor.

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[Project Name] Letter of Intent
Within Twenty-Eight (28) days from acceptance and signature of this LOI by Contractor, the
Contractor shall:

1. Submit to the Engineer for consent the name and particulars of the person the
Contractor proposes to appoint as Contractor's Representative.

2. Submit to the Engineer for consent a detailed Programme that he intends to follow in
the completion of the design, fabrication, and construction in line with Sub-Clause
8.3 of the Conditions of Contract.

3. [Add or delete any other requirements]

Subject to satisfactory progress and/or completion of the Works under this LOI, progress
payments shall be paid by us against amounts certified by the Engineer within 56 days from
receipt of your payment applications, which are to be submitted after the end of each month.
Said progress payments shall be evaluated based on the rates and prices included in the Bill
of Quantities.

In the event of no Contract being concluded on the Project, or the negotiations not being
successfully concluded, we undertake to pay you the reasonable and actual costs incurred in
following the above instruction up to the time of cancellation. Reasonable substantiation
shall be provided by yourselves in support of the cancellation claim and, in the event of
disagreement, a mutually acceptable independent auditor will certify the sum to be paid in
accordance with the terms of this letter and accepted accounting conventions. The Contractor
shall then grant the Employer full right to use, copy, and communicate the Contractor’s
Documents (if any) produced by the Contractor including making and using modifications of
them.

In the event of an Agreement/ Contract being concluded between us, as anticipated in

paragraph 1 above, all costs, claims arising under this instruction will lapse on the merger of
your rights and our obligations under the Agreement/Contract. The Commencement Date
under this LOI will become the Commencement Date under the forthcoming Contract
Agreement unless agreed otherwise by the Parties.

Please acknowledge receipt of this letter by return and signify your acceptance to its terms
and conditions by appending your authorized signature, duly witnessed, to the attached copy
of this Letter and returning to the undersigned, within a maximum period of seven (7)
calendar days, failing which this LOI shall be null and void.

Best Regards,

_____________________________

For and on behalf of

_____________________________

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[Project Name] Letter of Intent
Accepted for and on behalf of _____________________________

Authorized signature(s) of the Contractor

Name _____________________________

Title _____________________________

Signature _____________________________

Date _____________________________

Witness

Name _____________________________

Title _____________________________

Signature _____________________________

Date _____________________________

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[Project Name] Letter of Intent