A Letter of Intent (LOI) in construction is a document that outlines the general terms and conditions of a proposed project or contract between a developer and a contractor or subcontractor. The LOI serves as a preliminary agreement and sets out the basic terms and conditions of the proposed project, such as the scope of work, project schedule, payment terms and any contingencies that must be met before a formal contract can be executed. The LOI is typically non-binding and is used to ensure that both parties are in agreement on the basic terms of the project before entering into a formal contract.

A Letter of Intent typically includes the following information:

• Project Description: This section outlines the scope of work and the objectives of the project, including the location, size, and type of construction.
• Schedule: This section lays out the proposed start and completion dates for the project, as well as any milestones or deadlines that must be met.
• Compensation: This section details how much the contractor or subcontractor will be paid for their work, including the payment schedule and any contingencies that must be met before payment is made.
• Liabilities and Insurance: This section outlines the responsibilities of each party in terms of liabilities, insurance, and indemnification.
• Dispute Resolution: This section describes how any disputes that may arise between the parties will be resolved.
• Confidentiality: This section states that the parties will keep the terms of the LOI confidential and will not disclose them to any third parties.
• Non-binding clause: This section states that the LOI is not a legally binding agreement, and that a formal contract must be executed before the project can begin.
• Signature: Both parties should sign the LOI to indicate their agreement to the terms outlined in the document.