Letter of Intent
Department: Operations
Topic: Letter of Intent
Objective:
· Notify subcontractors of intention to issue a contract for a project
· Initiate the prequalification process for subcontractors we have not worked with previously or have not worked with in a long time.
Things to Consider:
The issuance of a letter of intent does not constitute a contract. At any time either Koester or the subcontractor could possibly decide not to enter into a contract after an LOI has been issued.
The intent of the LOI process is to notify contractors so that we can start on a few key tasks
· Prequalification- Standard procedure with any new contractor is to require that they complete our prequalification form. This form will help identify several key indicators of performance, financial stability, safety, and supplier information that we need to know prior to issuance of a commitment.
· Begin the process of material procurement through the submittal process.
In addition to being a project startup task, issuance of LOIs and importantly the prequalification process helps our business development department understand our subcontractor base in specific areas. Therefore, Kenny Beaird will manage the prequalification so that that data can be distributed to business development as well. Notify Kenny Beaird that you will be sending LOIs for your project. Kenny will manage the prequalification process/paperwork.
Steps
1. Download the Project LOI spreadsheet from Procore training center.
2. Complete the Project LOI spreadsheet and forward to Kenny Beaird. Set a deadline for prequalification to be completed.
3. Call the estimator(s) or project manager(s) for the contractor(s) you wish to notify. By calling, you have an opportunity to ask any final questions related to the bid, explain the prequalification process, and offer a personal notification for relationship building.
4. Download the Project Letter of Intent document from Standard Documents in Procore Training Center.
5. Create a LOI for each contractor using the standard document.
6. Email the completed document to the contractor, copying Kenny Beaird.
See Also