Court Opinions

State Laws

US Code

US Constitution

Letters of intent - 62 Pa. Cons. Stat. § 906

Legal Research Home > Pennsylvania Statutes

     § 906.  Letters of intent.
        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.

Last modified: November 27, 2007