header-logo header-logo

02 April 2009 / Jenny Pattison
Issue: 7363 / Categories: Features , Procedure & practice , Terms&conditions , Property
printer mail-detail

Proceed with caution!

Jenny Pattison on letters of intent in the construction industry

Where a project needs to proceed without delay, letters of intent can form a useful temporary solution permitting a contractor to start the preparatory and/or main works, pre-order materials and instruct sub-contractors/suppliers before the formal building contract has been concluded. The recent case of Diamond Build Limited v Clapham Park Homes [2008] EWHC 1439, [2008] All ER (D) 353 (Jun) provides a timely reminder to proceed with caution in agreeing the terms of such a letter, to monitor the progress of the instructed works, and most crucially, to agree and execute the formal building contract at the earliest opportunity.

Types of letter of intent

A letter of intent requires a contractor to commence work pending formalisation of the building contract. The court in British Steel Corporation v Cleveland Bridge and Engineering Company [1981], [1984] 1 All ER 504 outlined three possible categories:

  •   
    ●     a “letter of comfort” expressing an intention to enter into a formal building contract in the future;
  •   
If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Cripps—Radius Law

Cripps—Radius Law

Commercial and technology practice boosted by team hire

Switalskis—Grimsby

Switalskis—Grimsby

Firm expands with new Grimsby office to serve North East Lincolnshire

Slater Heelis—Will Newman & Lucy Spilsbury

Slater Heelis—Will Newman & Lucy Spilsbury

Property team boosted by two solicitor appointments

NEWS
A High Court ruling involving the Longleat estate has exposed the fault line between modern family building and historic trust drafting. Writing in NLJ this week, Charlotte Coyle, director and family law expert at Freeths, examines Cator v Thynn [2026] EWHC 209 (Ch), where trustees sought approval to modernise trusts that retain pre-1970 definitions of ‘child’, ‘grandchild’ and ‘issue’
Fresh proposals to criminalise ‘nudification’ apps, prioritise cyberflashing and non-consensual intimate images, and even ban under-16s from social media have reignited debate over whether the Online Safety Act 2023 (OSA 2023) is fit for purpose. Writing in NLJ this week, Alexander Brown, head of technology, media and telecommunications, and Alexandra Webster, managing associate, Simmons & Simmons, caution against reactive law-making that could undermine the Act’s ‘risk-based and outcomes-focused’ design
Recent allegations surrounding Peter Mandelson and Andrew Mountbatten-Windsor have reignited scrutiny of the ancient common law offence of misconduct in public office. Writing in NLJ this week, Simon Parsons, teaching fellow at Bath Spa University, asks whether their conduct could clear a notoriously high legal hurdle
A landmark ruling has reshaped child clinical negligence claims. Writing in NLJ this week, Jodi Newton, head of birth and paediatric negligence at Osbornes Law, explains how the Supreme Court in CCC v Sheffield Teaching Hospitals NHS Foundation Trust [2026] UKSC 5 has overturned Croke v Wiseman, ending the long-standing bar on children recovering ‘lost years’ earnings
A Court of Appeal ruling has drawn a firm line under party autonomy in arbitration. Writing in NLJ this week, Masood Ahmed, associate professor at the University of Leicester, analyses Gluck v Endzweig [2026] EWCA Civ 145, where a clause allowing arbitrators to amend an award ‘at any time’ was held incompatible with the Arbitration Act 1996
back-to-top-scroll