Design Contract vs. Letter of Intent: Which One Do You Need?
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
| Feature | Design Contract | Letter of Intent (LOI) |
|---|---|---|
| Client Has Drawings? | ❌ No | ✅ Yes (partial or full) |
| Main Purpose | Create plans for construction | Finalize cost & project details |
| Cost Esitmates? | Rough budget only | Detailed, finalizing cost |
| Leads to Construction Contract? | Yes, after design is complete | Yes, once pricing & scope are finalized |
| Deposit Required? | Yes | Yes |
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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