Construction Law/commencement date


I am using Fidic 1999. Letter of Intent have been issued on 03 June 2013 and stating that commencement date is 10 June 2013. Now,a Letter of Award will be issued on 26 June 2013 and I will have to write commencement date on 10 June 2013, being 2 weeks before the date of the LOA, is this okay? since a legally binding document is the LOA?.

Dear Aryono,

Thank you for this question.

A Letter of Intent is not of binding effect as a contract; however depending upon the wording it may have the effect of an instruction and/or the same effect as a Letter of Acceptance (LOA).

By reference to sub-clause 8.1 the Engineer's instruction to commence can be at any time AFTER the LOA. On this premise the earlier instruction may be of no effect, however I see no problem with the LOA making reference to a prior agreement between the Parties to agree to a commencement date which precedes the LOA.

I hope that this assists you.

Kind regards,
John Dowse

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John Dowse


Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.


Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Various UK and International construction and legal publications.

LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

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