There is no single issue that causes more dispute in the industry than the question of whether or not a contract has arisen after a contractor has started work on site under a letter of intent. It is often impossible to predict the outcome of any dispute resolution process because the legal position is so unclear. A client who allows his contractor to begin work on site under a letter of intent has no binding contract price, no binding completion date and not much by way of remedy if work is defective. A consultant who allows his client to do this should be sued for negligence.
It is irredeemable bad practice to issue a letter of intent. There is no single issue that causes more dispute in the industry
Ann Minogue is a partner in Linklaters