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CONSTRUCTION FOCUS: Risky business

03 May 2017  

Letters of intent can lead to uncertainty and costly disputes. John Starr discusses recent cases

Letters of intent are widely used in the construction industry as a means of allowing work to start on site (or at least for the procurement of long-lead items) before the formal construction contract has been negotiated. They will usually allow the contractor to get on with certain tasks up to a certain stage or maximum fee cap.

Additional Info

  • Case(s) Referenced:

    Arcadis Consulting (UK) Ltd v AMEC (BSC) Ltd [2016] EWHC 2509 (TCC)

    RTS Flexible Systems Ltd v Molkerei Alois Müller Gmbh & Company KG [2010] UKSC 14

    Spartafield Ltd v Penten Group Ltd [2016] EWHC 2295 (TCC)

    The Trustees of Ampleforth Abbey Trust v Turner & Townsend Project Management Ltd [2012] EWHC 2137 (TCC)