Memorandum of Understanding (MOU)

A Memorandum of Understanding (MOU) is a non-binding agreement between two or more parties that outlines their intentions, expectations, and responsibilities regarding a specific project or collaboration. In construction, an MOU may be used to establish the general scope, timeline, and budget for a proposed project, as well as the roles and contributions of each party. The document typically includes a description of the project objectives, the key terms and conditions, the dispute resolution methods, and the process for converting the MOU into a formal contract. The purpose of an MOU is to provide a framework for the parties to explore and refine their potential partnership, build trust and consensus, and lay the groundwork for a successful project. While an MOU is not legally enforceable, it can serve as a valuable tool for aligning the parties’ interests and expectations and facilitating the negotiation of a final contract.