What is LoA?

What is an LoA?

A Letter of Award is issued by the buyer to the successful bidder after evaluation and approval. It confirms that the bid has been accepted and sets out the main terms: scope, contract value, and what the bidder must do next.

Some organisations call it a Letter of Acceptance or Notification of Award. A Letter of Intent (LoI) is sometimes used for a similar purpose, though it may signal intent rather than a final award. Read the wording to know where you stand.

What usually follows

Failing to accept the LoA or to submit the performance security in time can lead to forfeiture of EMD, or action under a Bid Security Declaration.

• The bidder confirms acceptance in writing within the time allowed
• The bidder submits performance security, often a Performance Bank Guarantee
• Both parties sign the contract agreement, if the tender requires one
• The buyer issues a work order or purchase order, or the LoA itself acts as the instruction to start

Tips for bidders

Check that the LoA matches your bid: price, quantity, delivery or completion period, and any agreed changes.

Note every deadline in it, especially for the performance guarantee. If anything differs from your bid, raise it in writing at once, before you accept.