Letter to authorize a company to do the work

An assigned job or project needs to be formally approved before it is carried out. The authorities first evaluate the feasibility of the project including the budget that would be incurred. Different options are considered, and the most economical solution is selected. Approval is then given in written form through an authorization letter.

There are different situations for authorizing work to be done. Mentioned below are the three most common scenarios.

  • Accepting a Bid

When you need to hire a contractor, you may seek more than one contractor and ask them for a bid. It may be a large-scale job related to the corporate world or a small project at your home. One of the contractors is then selected based on his capabilities and the bid he placed for the given project. You need to give him official permission to begin the required work. This can be done through a letter.

  • Approving a Project Proposal

In the corporate world, employees often come up with project ideas which are presented to the management in the form of a proposal. Such proposals may also be given for educational research work or for starting a new business. Once the higher authorities approve the proposal, a formal letter is issued to the concerned individual or party to give permission for the work to begin.

  • Issuing Instructions for a New Project

Contrary to a proposal presented by an employee, the employer may also instruct his subordinates to carry out a certain project or task. An official authority letter needs to be provided for the work to begin. This is particularly important if it involves finances.

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In any kind of situation, the overall content of this authority letter is almost the same. Provided below are general guidelines for composing this document.

  • Provide the Approval

State your approval in clear words. Refer to the project or assignment for which the authorization is being provided. This should be the opening of your letter.

  • Discuss Finances

If the project involves a budget, state what finances have been approved. Discuss if the company has accepted a certain bid or agreed to pay for previously discussed charges or fees at the completion of the task.

  • Mention the Important Dates

It is important to mention the date by which you expect the project to be started. Likewise, a deadline should also be provided. In case the project needs to be broken down into several milestones, mention the deadline by which each milestone must be achieved.

  • Provide Relevant Documentation

The most important document to be provided with this letter is a formal contract for the project in case a company or individual is outsourcing a certain task. All details of the terms and conditions are discussed in the contract. As the reader to sign the agreement before officially starting the required job.

Sample Letter -1

ABC Enterprises would like to assign you the job of interior decoration for its new hotel opening next year. Your ideas have been appreciated and approved. The company has also accepted your total bid for the project. The management authorizes you to begin your work from the coming Monday. Your deadline is February 2020, two months before the official opening of the hotel.

A formal contract stating all our conditions as well as expectations has been enclosed with the letter. You are requested to go through the document carefully. If you agree, please sign the contract and inform the company by this Thursday.

You may contact our Senior Project Manager at (phone number) in case of any queries. We look forward to working with you.

Letter to authorize a company to do the work

Sample Letter -2

XYZ Corporation authorizes ABC Agency to carry out an advertising campaign for its new product. We have accepted your bid and payment will be made according to the conditions discussed in our agreement.

We expect the campaign to begin before the official launch of the product. Therefore, you must begin your work this month. We would like to see your finalized ideas on the 15th of August. The television and radio advertisement must go on air on the 25th of August.

You will find attached a copy of our agreement. Kindly visit the office on Wednesday with the signed contract. The management would also like to hold a meeting with you for further discussion.

Letter to authorize a company to do the work

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