RETIRED CONTENTPlease note that the content on this page is retired. This content is not maintained and may contain information or links that are out of date.
Organizations often hire contractors. In most cases, negotiating and signing a contract should precede the beginning of work. In some cases, however, the assignment is too small to warrant a full contract. And, in other cases, although a contract is essential, the work is too urgent to delay until the negotiation and approval of a full-scale contract. In these types of circumstances, turn to a Letter of Agreement (LoA) instead.
The Letter of Agreement
What is a Letter of Agreement (LoA)? Also known as a letter of understanding, memorandum of understanding, or a scope of work agreement, an LoA is a brief document that summarizes basic items of agreement between you and a contractor so that work can commence. At a minimum, an LoA will contain information on the nature of the work to be done, due dates, and payment terms. In comparison with a contract, an LoA is much briefer, making it faster and easier to draft, and easier to get approved by both parties.