Interim Agreement:

An interim agreement is a temporary contract that governs the rights, obligations, and expectations of parties during a transitional period or pending the negotiation of a final agreement. In construction, an interim agreement may be used to allow work to commence or continue while the parties finalize the terms and conditions of the main contract. The agreement typically includes the scope of work, the payment terms, the duration of the agreement, the liability and insurance provisions, and the termination and conversion clauses. The purpose of an interim agreement is to provide a legal framework for the parties’ activities, minimize the risks and uncertainties of the interim period, and facilitate the smooth transition to the final contract. An interim agreement should be carefully drafted to ensure that it is consistent with the intended final contract and does not create unintended obligations or liabilities.