A letter of award is a letter that is sent to a bidder on a business related contract that has been awarded the contract. This type of letter is very common in auction situations, where multiple parties are bidding on the same job. For example, if a company was taking bids on contactors to expand their factory, they would send a letter of award to the contractor they chose to complete the job for them. Essential information to include in a letter of award include the following
Amount of award – the amount in monetary terms that the contract is for
Award date - the date on which the award was made
Contract sign date – the date on which the final contract will be signed
Sample letter of award
Robert L. Wall
285 Valley Street
Camden, NJ 08102
Dugman consulting accepts your tender dated July 5th, 2009, named: agreement for refurbishment of steel plant, contract #564232.
The fee received shall be $500,000 plus any overtime required by your workers, as per our previous negotiations.
The final contract is to be signed on or before July 29th, 2009 for this award to be valid. Otherwise, it will be considered null and void.