Letter of Intent Template for Construction Contract

LETTER OF INTENT (LOI) FOR CONSTRUCTION SERVICES

Document ID: TR-[1029-A]
Effective Date: [____/____/2026]

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INSTRUCTIONS FOR USE

• Completion: This document is to be completed by the Project Owner or authorized Procurement Lead. All brackets must be filled with specific project data before issuance to the Contractor.
• Filing & Retention: Upon execution, provide a copy to both parties. The document must be stored in the Project Master File and retained for a minimum of seven (7) years following project completion or contract termination.
• Mandatory Attachments: Ensure the following are appended: (a) Preliminary Scope of Work (SOW), (b) Site Access Requirements, and (c) Current Insurance Coverage Certificate.

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1. PARTIES

Project Owner: [__________] ("Owner")
Contractor: [__________] ("Contractor")
Project Name: [__________]
Project Location: [__________]

2. INTENT & AUTHORIZATION

This Letter of Intent serves as a formal notice that the Owner intends to enter into a formal Construction Contract with the Contractor for the performance of construction services.

Contractor is authorized to commence the following activities:

• Preliminary mobilization and site preparation.
• Procurement of long-lead materials and equipment.
• Finalization of construction schedules and permit applications.
• Other: [__________]

3. FINANCIAL LIMITS

Not-to-Exceed (NTE) Authorization: $[__________]
Billing Cycle: [ ] Monthly [ ] Milestone-based [ ] Upon Completion

The Contractor shall not exceed the NTE limit without prior written approval from the Owner. All invoices must include supporting documentation and be submitted to: [__________].

4. CONTRACT NEGOTIATION

Both parties agree to negotiate the final Construction Contract in good faith. This LOI is intended to bridge the gap until the formal agreement is executed. The parties target the following date for the execution of the final agreement: [____/____/2026].

5. TERMINATION

This LOI shall remain in effect until:

1. The execution of a formal Construction Contract; or
2. Written notice of termination by either party, subject to a [__________] day notice period. In the event of termination, the Owner shall compensate the Contractor for all authorized work performed and materials ordered up to the date of termination.

6. GOVERNING LAW

This LOI shall be governed by the laws of the State/Province of [__________].

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7. EXECUTION

By signing below, the parties confirm their intent to proceed under the terms outlined herein.

FOR THE OWNER:

Authorized Signature: ___________________________
Printed Name: [__________]
Title: [__________]
Date: [____/____/2026]

FOR THE CONTRACTOR:

Authorized Signature: ___________________________
Printed Name: [__________]
Title: [__________]
Date: [____/____/2026]

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Disclaimer: This document is provided as a standardized framework. Consult qualified legal counsel for jurisdiction-specific statutory compliance.