000 01746cam a2200241 4500
001 ABS68494
008 041220n2004 000 0 eng u
035 _a(Sirsi) u128357
100 _aAtkinson, D.
245 _aMake intentions clear
260 _c2004
490 _aConstruction News
_v (6897) 16 December 2004, 25(1)
520 _aDiscusses how letters of intent can leave contractors out of pocket on complex jobs. Suggests it is always best to make time to write a contract and clearly state costs. Looks at "Mowlem plc v Stena Line Ports Ltd" ([2004] EWHC 2206 (TCC) unreported), where the judge ruled a letter of intent was not limited to work before that date and that it was bizarre if the limit could be avoided by simply exceeding it. Points out that a letter of intent usually states the employers intention to contract with the contractor and promises that if a contract is not concluded, the employer will pay the contractor's costs up to a given limit. If a contractor then continues to work after the cost limit has been reached, it is not automatically entitled to payment for this extra work. Recommends that if the contractor thinks that the cost limit imposed for the work is too low for the work carried out, it should stop work. Suggests the parties always try to conclude a contract and if they cannot, they should make sure both parties know what will signal the end of the contractor's obligations under the letter of intent.
590 _aABS
590 _aABS
650 _aLETTERS OF INTENT
650 _aMOWLEM PLC v STENA LINE PORTS LTD
650 _aIMPLIED TERMS
650 _aESTOPPEL
650 _aBUILDING CONTRACTORS
690 _aBUILDING AND CONSTRUCTION-CONTRACTS-CASE LAW
942 _n0
999 _c118468
_d118468