Category: Contracts & management
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
The letter of award is a formal letter from the owner telling the contractor his offer is accepted, stating the contract value, the contract documents and next steps such as guarantees and signing. In government tenders it is issued through the Etimad platform.
Why it matters on a project
Depending on its wording the letter itself can be a binding contract, and the deadlines for guarantees and mobilisation run from it. Read it carefully before replying.
Common mistake
Starting work on a conditional letter of award without meeting its conditions or signing the contract, which weakens the contractor's position in a dispute.
Frequently asked questions
Is the letter of award enough to start work?
It depends on the wording; safest is to wait for the signed contract or a clear notice to proceed.
What is usually required after award?
A performance guarantee, insurances, the programme and quality and safety plans within a set period.
Related terms
- Tender documents (conditions)The documents defining tender conditions, specifications and evaluation criteria.
- Etimad platformThe Saudi government platform for publishing tenders and submitting bids.
- Performance bondSecurity the contractor gives the owner against failure to perform.
- Advance paymentAn amount paid to the contractor at the start and recovered from payments.
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