A letter of intent in residential construction is an agreement between two parties outlining the terms and conditions that will form the basis of their contractual relationship. This includes items such as scope of work, cost, schedule, payment schedule, and any other relevant information necessary to move forward with the project. The letter may also include details about any warranties or guarantees related to the project, as well as any contingencies or conditions that must be met before the agreement can become legally binding.
By outlining these details in writing, both parties are able to clearly understand and agree to all aspects of the project prior to beginning construction. This helps to ensure a smooth transition from planning and preparation to actual building work. Additionally, having a letter of intent in place allows both parties to have a clear plan of action and timeline that they can rely on to keep the project progressing.