Sample Construction Letter of Intent

When an employer hires a contractor for construction works or when a contractor hires a subcontractor for a specific part of the construction project, they sign a contract with each other which is known as the construction agreement. In this agreement, the employer and the contractor describes what they are supposed to do in order to complete the project including the specifics of the project and the payment from the employer. A written agreement can take a while depending on the size of the project and if the employer and the contractor don’t want to waste any time, they start the work with the letter of intent. This letter is sent from the employer to the contractor or from the contractor to a subcontractor.

Brief Description of Construction Letter of Intent:

As it’s said above that when an employer hires a contractor for construction purpose, they enter in the agreement in order to protect the rights of each other and provide the responsibilities according to the agreement but this agreement can take days and even weeks before completion. If the employer wants the contractor to start the work right away without waiting for the agreement to be completed and arrived, he writes the letter of intent and sends it to the contractor. According to this letter, the employer accepts that he has hired the contractor for the construction services that are described mildly in the letter.

Usually people don’t go with the letter of intent because it doesn’t have any legal value as compared to the proper construction agreement but in case an employer goes with the letter of intent, more chances are that they will never sign the construction agreement because signing and sending a letter of intent shows trust on the contractor and thus, the people who have trust on each other, don’t bother to go through the trouble of creating the proper and legal construction agreement once they sign the letter of intent for construction.

Here is preview of a Sample Construction Letter of Intent prepared by us to help you get started with this task,