Before a contract for construction is effective, the head or a deputy of the purchasing agency may issue binding letters of intent to contract. A bidder or offeror receiving a letter of intent may rely on the letter to prepare to start work to the extent authorized by the letter and incur costs in preparation for performance of the contract. No work on the construction site shall be commenced and no payment shall be made to the bidder or offeror until the contract is fully executed. If the contract is not fully executed, the bidder or offeror shall be entitled to reimbursement for its actual expenses reasonably incurred pursuant to the letter prior to notification from the purchasing agency not to proceed. Reimbursement shall not include any loss of anticipated profit, loss of use of money or administrative or overhead costs.
(Dec. 3, 2002, P.L.1147, No.142, eff. imd.)
2002 Amendment. Act 142 added section 906.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 9 - Procurement of Construction and Design Professional Services
Section 902 - Bid or proposal security
Section 903 - Contract performance security and payment bonds
Section 905 - Procurement of design professional services
Section 906 - Letters of intent
Section 907 - Procurement of right-of-way acquisition assistance services