GLOSSARY TERM  
  Letter of Intent (LOI)  
 
  DESCRIPTION  
  A pre contractual letter from a prospective Principal notifying a prospective Contractor (tenderer) that it intends to award a contract to that prospective Contractor. An issue that may arise is whether the Principal is bound by such a letter to in fact proceed with the contract or pay the Contractor for any work it does in reliance on the letter.