14 contract award

Question 1

What is the purpose of a letter of acceptance?

Answer 1

1 accept the tender
2 nominate enquiry documents and documents of amendments, minutes of meetings and qualifications which will be incorporated in the contract documents
3 confirm that an instrument of agreement will be prepared by PM and sent to tenderer with updated contract docs
4 state specifications and drawing from enquiry docs are provisional so must be amended for construction purposes.
5 state would will rep principle for all contract stuff
6 nominate that date of letter of acceptance is the date of acceptance of tender or date of commencement of work
7 confirm lump sum
8 until agreement is signed, letter of acceptance and ref docs will form the contract

Question 2

What is the purpose of a letter of intent?

Answer 2

1 state to tenderer that principle want to accept tender by a certain date
2 authorise tenderer to start some certain work with specific money
3 if letter of intent withdrawn principle will pay tenderer the authorised work
4 state letter of acceptance will supersede letter of intent
5 request tenderer to confirm acceptance of letter of intent

Question 3

What does the issuing of a letter of acceptance form?

Answer 3

a simple contract

Question 4

What is needed for a formal contract?

Answer 4

signing of a formal instrument of agreement

Question 5

What is written in a formal instrument of agreement?

Answer 5

1 the respective promises of both parties
2 the work under the contract
3 the consideration