- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 17 Jan 2018
Letter of award
The letter forms part of the contract award, which is the process of formally notifying a tenderer that they have been selected as the supplier for a particular contract. It will usually be sent out together with letters to unsuccessful tenderers.
The letter will typically contain details of the amount of the award, the date of the award, and when the contract will be signed. A notice to proceed may also be included detailing the date on which a contractor may begin work.
On public projects, the despatch of a letter of award signifies the start of the Alcatel (standstill) period in the procurement process. This allows unsuccessful tenderers the chance to obtain more information on the award of the contract so they can take appropriate action if they believe they have been unfairly treated.
As such it may be necessary for a letter of award to avoid committing to accepting the tender, since this can be taken to be binding. Rather, the aim of the letter is to give the successful bidder reassurance, and to allow them to begin preparations, whilst refraining from any commitment to legally binding obligations.
As a result, a letter of award may be referred as a 'letter of intent to award' or it may include caveats.
NB A letter of intent is a document expressing an intention to enter into a contract at a future date but creating no contractual relationship until that future contract has been entered into. This may be necessary when suppliers are incurring costs and overheads and can be used as an interim arrangement prior to a formal contract being executed. For more information see: Letter of intent.
 Related articles on Designing Buildings Wiki
Featured articles and news
Book review: The vertebrate architecture of one of the most important practices of the 20th century.
Matt Rhodes, Quiss Technology, explains how an increasing number are falling victim to sophisticated cyber-attacks.
Assembly drawings represent items that consist of more than one component and show how they fit together.
Is the water sector under too much pressure from the regulator?
Everything you need to know about acoustics in under 800 words.
Check out our list of the 90 most unusual buildings of all time.
The government is to set a personal consumption target to reduce water use.
BSRIA calls for more education to promote fuels that are fit to burn.
Michael Gove admits air pollution is making people ill and shortening lives.
BRE call for a clearer, focused drive for the delivery of sustainable, quality developments.
Proposals for a 140m high observation wheel next to the Tyne.