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Subcontractor Letter Of Intent Template for Saudi Arabia

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Key Requirements PROMPT example:

Subcontractor Letter Of Intent

"I need a Subcontractor Letter of Intent for a solar power plant construction project in Riyadh, with preliminary works authorization for site preparation starting March 2025, and including exclusivity provisions to prevent the subcontractor from engaging with competitors during negotiations."

Document background
The Subcontractor Letter of Intent is a crucial preliminary document used in Saudi Arabian business practice when a main contractor intends to engage a subcontractor but requires a formal expression of intent before finalizing the full subcontract agreement. This document becomes particularly important in situations where project timelines necessitate early engagement or when preliminary works need to commence while the main subcontract is being finalized. The Letter of Intent must carefully balance the need for preliminary commitment while avoiding unintended binding obligations, all within the framework of Saudi Arabian law and Sharia principles. It typically precedes more comprehensive subcontract agreements and is commonly used in construction, engineering, and infrastructure projects where complex supply chains require careful coordination and clear documentation of intentions.
Suggested Sections

1. Date and Parties: Clear identification of the main contractor and subcontractor, including full legal names, registration numbers, and addresses

2. Project Reference: Identification of the main project, including project name, location, and reference to the main contract if applicable

3. Scope of Works: Brief but clear description of the intended subcontract works

4. Commercial Terms: Outline of the proposed contract value, payment terms, and any advance payments

5. Timeline: Expected dates for contract finalization and anticipated project commencement

6. Validity Period: Clear statement of how long the LOI remains valid

7. Non-Binding Statement: Clear statement that this is a non-binding LOI except for specifically identified binding provisions

8. Confidentiality: Statement regarding confidentiality obligations

9. Governing Law: Confirmation that Saudi Arabian law and Sharia principles govern the LOI

10. Signatories: Signature blocks for authorized representatives of both parties

Optional Sections

1. Preliminary Works Authorization: Used when immediate commencement of certain works is required before the full subcontract is signed

2. Exclusivity: Include when parties want to ensure exclusive negotiations during the LOI period

3. Key Personnel: Include when specific key staff commitments need to be secured early

4. Conditions Precedent: Used when certain conditions must be met before proceeding to full subcontract

5. Termination Provisions: Include when preliminary works are authorized or when LOI period is extended

6. Dispute Resolution: Include when preliminary works are authorized or significant pre-contract activities are contemplated

Suggested Schedules

1. Preliminary Scope of Works: High-level scope description and key deliverables

2. Commercial Terms Summary: Overview of proposed pricing, payment terms, and commercial conditions

3. Project Timeline: Preliminary project schedule showing key milestones

4. Required Documentation: List of documents required from subcontractor for final contract execution

5. Authorized Preliminary Works: Detailed description of any works authorized to commence under the LOI

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 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

Engineering

Oil & Gas

Infrastructure Development

Real Estate Development

Manufacturing

Industrial Projects

Energy

Telecommunications

Mining

Transportation

Healthcare Construction

Education Construction

Relevant Teams

Legal

Commercial

Procurement

Project Management

Operations

Contract Administration

Risk & Compliance

Technical

Business Development

Supply Chain

Finance

Relevant Roles

Project Manager

Commercial Manager

Contracts Manager

Legal Counsel

Procurement Manager

Construction Manager

Operations Director

Technical Director

Chief Executive Officer

Managing Director

Quantity Surveyor

Project Control Manager

Business Development Manager

Supply Chain Manager

Risk Manager

Compliance Officer

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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