Potentially new site for mixed-use development

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Reference no: EM133211851

M19 construction is looking to undertake work in the south of Coventry on a potentially new site for a mixed-use development, however, the works involve limited and time- controlled access to the site because of the midlands air museum and Coventry airport in close proximity. Because of this, the contractor is yet to assess the impact on planning work flow and cost; as such, delays in signing of the contract. The client has decided to re-issue the tender, however, informs the contractor through a letter of intent to carry out some preparatory works. During the same period, the client issues further design changes likely to have an impact on the payment cap provided in the letter of intent.

As a construction contracts specialist, comment on when a contract is valid. Explain to the contractor:

(i) the implications of undertaking work with no valid contract; and

(ii) if the client is liable to pay for the additional work on the basis of a letter of intent with contractual effects.

Reference no: EM133211851

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