Cian BrennanFounder, Quantum Contract Solutions · Founder

Letter of Intent is NOT a Contract in Construction

Name: Letter of Intent is NOT a Contract in Construction
Uploaded: 2025-04-03T22:01:01+00:00
Duration: 33 s
Channel: Cian Brennan
Description: In this concise advisory video, the speaker emphasizes that a Letter of Intent (LOI) is not a legally binding contract and should not be relied upon to…

3 Apr 2025 · 1 min

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In this concise advisory video, the speaker emphasizes that a Letter of Intent (LOI) is not a legally binding contract and should not be relied upon to commence construction work. They warn that starting on‑site activities under an LOI leaves the contractor’s insurance coverage vulnerable and exposes both the business and its employees to significant risk. To mitigate these dangers, the speaker recommends securing a purchase order, a pre‑payment, or a written agreement before purchasing equipment or beginning any work, ensuring there is a billable basis and proper protection.

Chapters

The letter of intent is essentially useless. It's just their intent to award a contract. If you start work on site, your insurance is not going to pay out. You're basically putting you at risk. You're putting your employees at risk. Don't start on site without a contract. Letter of intent is not a contract. Don't do it. And if you have to start doing, if you have to start purchasing equipment upfront, get a PO for it, get a prepayment or an agreement that you can at least go ahead and purchase this thing and you have something to bill against. Get it sorted, get your ducks in a row. Letter of intent is essentially useless.