Notice of intent
A Notice of Intent is a formal communication typically issued by one party to another to notify them of an intention to take a specific action related to a construction contract or project. A Notice of Intent is important because it provides formal communication and documentation of a party's intentions, ensuring transparency and giving the receiving party time to prepare, respond, or take necessary actions. It also helps to protect the interests of the issuing party by complying with contractual requirements and preserving their rights under the contract.
The purpose and content of the notice can vary depending on the context in which it is used:
- A Notice of Intent to Award a Contract might be used by an employer or client to inform a contractor or supplier that they intend to award them a contract for a construction project. It is usually issued after the tendering process and serves as a preliminary indication before the formal contract is signed. The notice typically includes details about the project, the scope of work, the parties involved, and the next steps, such as contract negotiation or preparation.
- A Notice of Intent to Claim might be issued by contractors or subcontractors to inform the client or employer of their intention to submit a claim for additional costs or an extension of time due to delays, unforeseen circumstances, or changes in the scope of work. The notice outlines the basis for the claim, including the nature of the delay or disruption, the estimated additional costs or time required, and references to relevant contract clauses.
- A Notice of Intent to Terminate might be issued by either party in a construction contract if they believe there has been a breach of contract or if specific conditions warrant termination. This notice would detail the reasons for the intended termination, reference relevant contract clauses, and outline any required remedial actions or steps before the termination takes effect.
- A Notice of Intent to Begin Work might be issued bya contractor to inform the client and other stakeholders that they plan to commence work on a specified date. The notice would include the planned start date, the work to be undertaken, and any preparatory actions required from the client.
See also: Advance notice.
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