How to Award a Contract Letter

Contract award letters indicate the start of a new or continuing business arrangement.

A letter awarding a contract is simple and straightforward. The letter informs a person or organization that it has the winning bid for a project or initiative. Or the letter indicates acceptance of a proposal and an official contract. Few details are necessary for the letter because the contract spells out all the specifics, including the dollar amount of the contract, the duration and duties and responsibilities. A person in the company or organization with authority to sign contracts usually writes and sends the letter. Contract award letters are often delivered by overnight mail because of their importance.

Instructions

1. Check with your purchasing department, if applicable, to confirm that you have the correct name for the person or organization with the winning bid. Sending an award letter to the wrong company causes great embarrassment. Cross-check the name with information on the contract.

2. Offer congratulations in the first paragraph as you announce that the company or individual is receiving the contract. Make a few remarks about the competition for the business, if appropriate, and your high expectations for the project.

3. Close the letter by detailing the next steps in the process, such as returning signed copies of the contract and scheduling a face-to-face meeting to begin the initiative.

References

• "The Business Letter Handbook"; Michael Muckian, et al.; 1996