Overview

A letter of intent, or an LOI, serves to provide the vendor with the direction of intent for a contract, without the need for formal contract execution. This includes instructions on which party will provide the first draft of the contract and when the vendor should commence with their services. Letters of Intent are useful for two parties who intend to create a formal agreement at a later time.

Process

  1. Within any Draft Contract, go to the Contract Details page, and click Issue a Letter of Intent

2. You will be prompted to select a few options.

  • Hold services until contract execution: This Vendor will not have access to the project within their workspace until the contract is executed.

  • Commence services immediately: This will grant the Vendor limited access to the project with a status of 'Feasibility' within their workspace prior to contract execution.

  • Provide contract to vendor: The contracting process will be initiated by the Contract Holder.

  • Request contract from vendor: Direct the Vendor to provide the first draft of the contract documents.

  • Letter of Intent format: you will have the option to create from scratch, choose from template, or upload manually. Note that in order to use a template, you must have at least one template set up within Lists & Templates.

3. Once you’ve filled out all the information, click Next Step. You’ll notice that the template we’ve selected has automatically been loaded. In this step, we’ll modify the template to make it specific to this project and contract.

4. Once you’re complete, you can click Next Step. At this time you will be asked to confirm the name of the approver of the LOI and the date it was approved, and to type CONFIRM and add any notes you might have

5. You can now click Send Letter of Intent once you are ready to finalize it

6. Once you hit Send and Close, this will take you back to the contract summary page, where you’ll see that the Letter of Intent section now provides you with the next steps.

7. Once you receive the signed LOI, click Upload signed LOI.

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