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Project Management in Construction essay
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Project Management in Construction. Custom Project Management in Construction Essay Writing Service || Project Management in Construction Essay samples, help

Letter of intent is a document in business transactions, which shows an agreement between two or more parties before confirmation of the contract. It normally shows the plan of the parties to engage each other in the business. The letter of intent is crucial because it stipulates the importance points of a complex transaction for clarity of the parties. It also shows formal negotiation between the parties, and last but not the least it provides safeguards if the deal does not materialize

The letter of intent should be clear and precise to the parties entering into an agreement. According to Levy (2006), the following items needs to be addressed in the letter of intent;

  • The letter of intent should indicate whether it is binding or not, the issue of parties accountability should be clarified to avoid contradiction with the contract.
  • It should contain a date when the work included in the letter of intent can start, and in some cases, when the letter of intent expires.
  • It should contain a statement stipulating that the scope of the work and its associated costs will be credited to scope/cost included in any formal construction contract, if subsequently issued.
  • I should include a termination clause setting a time limit on the work, or an event that triggers termination, such as the issuance of a formal contract. A termination clause "for convenience" is often included, allowing either party tom determine work upon written notification, and stating the method by which a settlement of costs up to that point will be established
  • The letter of intent is to be signed and dated by all concerned parties (p. 13).

Project managers also do value engineering to analyze comprehensively the cost of entire project. According to Levy (2006), when any formal agreement between an owner and contractor includes reimbursement of costs, the engineering of the cost to show what constitutes "costs" in the initial document will greatly help in cost management (p. 13). Therefore, among all the items included in the letter of intent, price and payment terms are normally very essential elements of the letter.

The preparation of a contractor-owner or contractor-subcontractor is very critical and requires a careful analysis at outset of matter to know limits, potential remedies, and all possible opportunities of recovery. There are various options which a contractor or subcontractor can explore recovery of several project participants. The following are provisions which require special attentions in contract;

  • The contractual dispute requirements
  • Whether the project is bonded
  • The available statutory remedies
  • Provisions which dictate the contractor's rights
  • The potential parties to litigation
  • Types of project documents which are available

A material safety data sheet (MSDS) refers to a form with detail of a particular substance. This document provides workers and emergency personnel with explanation of dealing with substance in a safer manner, it includes all precautions needed. MSDS differs from source to source within the country in regard to national necessities.

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