Design Contract vs. Letter of Intent: Which One Do You Need?
February 4, 2025

February 4, 2025

When planning a construction project, homeowners and businesses often face a key question: How do we move forward if we don’t have a final design or price? At B&G Construction, we offer two agreements to help clients take the next step in their project—a Design Contract and a Letter of Intent (LOI). Each serves a different purpose and applies at different stages of project development.

What is a Design Contract?

A Design Contract is ideal for clients who have a vision but do not yet have architectural or engineered plans . This agreement allows our team to collaborate with you and design professionals, such as interior designers, to create a solid foundation for your project. The process includes: 
  • Concept Development – We work with you to define your vision, functional needs, and budget.
  • Architectural & Engineering Coordination – We ensure your design meets structural and zoning requirements.
  • Preliminary Budgeting – We provide a rough cost estimate based on the early design.
  • Scope Refinement – Adjustments are made to align your design with your budget and goals.

When to Choose a Design Contract:

✅ You have an idea for a project but no formal plans.
✅ You need expert guidance to turn your vision into a buildable design.
✅ You want cost feedback before finalizing a detailed design.
Once the design is complete, B&G Construction can provide a detailed estimate and transition into a full construction contract.

What is a Letter of Intent (LOI)?

A Letter of Intent (LOI) is used when a client already has preliminary or full architectural plans, but additional time is needed to finalize the project cost before signing a construction contract. This agreement allows us to: 
  • Conduct detailed estimating & bidding – We collect subcontractor and supplier quotes for accurate pricing.
  • Perform value engineering – We suggest adjustments to optimize costs while maintaining quality.
  • Clarify materials & scope – We finalize selections and project details to ensure everything is aligned.
  • Prepare for permitting & approvals – We handle the necessary steps to keep your project on track.

When to Choose a Letter of Intent:

✅ You have architectural drawings but need time to finalize the cost.
✅ You want to work with B&G Construction but need to refine project details before committing.
✅ You’re ready to move forward but need assistance with permitting and final pricing.

Key Differences at a Glance 

Which One is Right for You?

  • If you don’t have plans , start with a Design Contract to develop them.
  • If you already have plans but need to finalize costs , a Letter of Intent is the next step.

 At B&G Construction , we guide homeowners and businesses through every phase of their project, ensuring a smooth transition from concept to construction. If you’re ready to take the next step, contact us today to discuss which agreement is right for you.

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