Sample Letter of Intent for Construction Project

By | July 5, 2015

Construction projects are huge undertakings and should not be operated on by mere word of mouth. Word of mouth doesn’t work as there are so many legalities and details that one has to look out for. Formal agreements are usually drawn up to make construction deals official but there is one step that precedes formal agreements – a letter of intent.

While bearing no legal standing in a court of law, a sample of intent is considered important due to several reasons including:

• Charts out the intent of an individual or party to pick up / give out the project
• Protection of right of each party involved
• Safety from one party going back on its word

Letters of intent can be used as evidence in a court of law (if the legal process recognizes it at the time of the suit). Following the signing of a letter of content, a construction project might even be allowed to take off.

The elements of a letter of intent include:

• Certainty of key terms of the forthcoming agreement
• Consideration – the price paid under the contract
• Mutual understanding of both parties to enter a legally binding agreement

A letter of intent can take any form – it all depends on how the initiator wants to handle it. It can be as formal or as informal as the party wants. Here is a sample letter of intent for a construction project.

Sample Letter of Intent for Construction Project

July 3, 2015

Christopher Pratt
Construction Manager
Pepper Construction Company
78 Mary Jo Road
Gardenville, NV 84192

Project: Adaline Way Houses

Congratulations! Your firm has been chosen as the successful builder to handle Project Adaline Way Houses in which you are the apparent low bidder. Please consider this document as a Letter of Intent to issue the contract to you, following successful completion on the period mentioned here.

This Letter of Intent is contingent upon Pepper Construction Company, receiving a formal contract. Please note that no labor or order of material is to be performed until the formal contract is signed by both parties.

Please refer to the following terms:

• Pepper Construction Company shall submit all specified information in the enclosed list for approval within 30 working days of the receipt of this Letter of Intent
• All certified data must be submitted within 20 days of approval
• All onsite work must be completed within 365 days after start of project

Please indicate the acceptance of this Letter of Intent by signing both copies and returning one copy to the undersigned.



Martin King