When it comes to preparing for a construction project, one of the most important steps is getting a pre-tender agreement in place. This agreement, also known as a letter of intent, outlines the terms and conditions of a potential project and can help avoid disputes down the line. In this article, we’ll take a closer look at what a pre-tender agreement is and provide a sample to help guide your own drafting.

What is a Pre-Tender Agreement?

A pre-tender agreement is a non-binding document between the client and the contractor that outlines the terms and conditions of a potential project. It is typically used in situations where the client wants to gauge interest and receive pricing from potential contractors before deciding whether to move forward with the project. With a pre-tender agreement in place, the contractor can begin work on pricing and planning without the fear of the client backing out of the project.

One of the key benefits of a pre-tender agreement is that it can help avoid disputes down the line. By outlining the terms and conditions upfront, both parties have a clear understanding of what is expected of them. This can help prevent misunderstandings and disagreements that may arise during the project.

Sample Pre-Tender Agreement

Below is a sample pre-tender agreement that you can use as a starting point for your own draft:

[Company Name]

[Address]

[City, State ZIP]

[Country]

[Date]

[Client Name]

[Address]

[City, State ZIP]

[Country]

Dear [Client Name],

This letter serves as an indication of our interest in providing [type of services] for your proposed [project name] project. We are pleased to submit this proposal as a pre-tender agreement, which outlines the terms and conditions of our potential involvement in this project.

The purpose of this agreement is to provide you with an understanding of our proposed scope of work, pricing, and timelines. This will allow you to make an informed decision before proceeding with a formal construction contract.

Scope of Work:

[Insert a detailed description of the scope of work, including deliverables, timelines, and any other relevant information.]

Pricing:

[Insert a breakdown of costs, including a detailed cost estimate and payment schedule.]

Timelines:

[Insert a detailed timeline for the project, including key milestones and deadlines.]

Terms and Conditions:

• This pre-tender agreement is non-binding and does not constitute a formal contract.

• We reserve the right to withdraw our proposal at any time before a formal contract is signed.

• The information we have provided in this proposal is accurate to the best of our knowledge.

• Any changes to the scope, pricing, or timeline must be agreed upon in writing by both parties.

• The terms and conditions outlined in this agreement will remain valid for [insert number] days from the date of this letter.

If you have any questions or would like to discuss the details of this proposal further, please do not hesitate to contact us.

We look forward to the opportunity to work with you on this project.

Sincerely,

[Company Name]

[Authorized Signatory]