Utah Contractor Practice Exam

Which document is primarily used to start a project informally before a contract is signed?

1. Addendum

2. Letter of intent

3. Scope of work

4. Project proposal

The correct answer is: Letter of intent

A letter of intent is a document typically used to express an initial agreement between parties and outline their intent to enter into a future contract. It allows for the commencement of project activities while formal contract negotiations are still ongoing. This document can set the groundwork for the terms and conditions that the parties anticipate will be included in the final contract but does not create a binding commitment to the full contract terms. This informal approach is particularly useful in situations where a quick start on a project is necessary, and it helps to ensure that both parties are aligned on the key points before moving forward with a signed contract. It sets expectations and can provide some legal protection for both sides by outlining preliminary agreements and commitments. In contrast, an addendum is used to modify existing contracts, while a scope of work details the specific tasks and deliverables in a contract. A project proposal, while important in the planning stage, is typically a document used to solicit and secure contract work rather than to initiate it informally.