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I'm being asked to start on a letter of intent

The contract isn't agreed, the programme won't wait, and a letter of intent is on the table.

01The contract arrives
02The terms read
03The clauses negotiated
04Signature
05Passed down the chain
You are here: The work is starting on a letter, not a contract.

What's happening?

Letters of intent exist because programmes move faster than negotiations, and used carefully they are a legitimate bridge. Used carelessly they are where subcontractors get hurt: caps on spend nobody tracks, scope in a sentence, no payment mechanism, and a promised contract that never arrives because the leverage to agree it disappeared the day you mobilised.

The questions that matter are short. What does this letter authorise, and up to what value? What happens to payment while it runs? What keeps both sides finishing the real contract? A letter that answers those is a bridge; one that does not is a trap with your name on it.

The solution

The letter read before you rely on it, and the gaps closed.