Preliminary contracts in the construction industry
In law, a preliminary contract typically aims to prevent the parties to a contract from entering (at a later stage) into a similar legal arrangement with third parties. In order to confirm that that they will not do so, parties will sign a preliminary contract.
Preliminary contracts are more common in Europe when buying land or property, especially when reserving property off-plan. Buying off-plan can be an uncertain process as a buyer commits to a property purely on the basis of drawings (plans) before any construction has taken place.
Preliminary contracts serve as a formal confirmation of reservation and may have more legal power than a deposit on its own. But they are formulated to secure the commitment of buyers rather than compelling developers to stick to their side of the bargain. Furthermore, a preliminary contract may not compel a developer to sell the property that is the subject of the contract.
Prior to signing the preliminary contract, potential buyers are advised to check how far the development has progressed and whether the developer or contractor is still in a position to start construction work. A further point to note is whether the work (if started) is in accordance with the plans. Some large developers can provide buyers with a degree of certainty but this may not be the case with all developers.
Preliminary contracts can be useful to potential buyers but they are not a full confirmation of the right to get what has been reserved.
NB The term 'preliminary contract' may also be used to refer to a contract for preliminary works, such as site preparation, setting out, construction of access roads and so on.
[edit] Related articles on Designing Buildings Wiki
- Agreement.
- Bespoke construction contract
- Construction contract conditions
- Contract documents for construction
- Contractual obligation.
- Contractual right.
- Core clause.
- Intermediate building contract
- JCT
- JCT Construction management contract
- Letter of intent.
- Lump sum contract
- NEC3
- Standard form of contract
Featured articles and news
What they are, how they work and why they are popular in many countries.
Plastic, recycling and its symbol
Student competition winning, M.C.Esher inspired Möbius strip design symbolising continuity within a finite entity.
Do you take the lead in a circular construction economy?
Help us develop and expand this wiki as a resource for academia and industry alike.
Warm Homes Plan Workforce Taskforce
Risks of undermining UK’s energy transition due to lack of electrotechnical industry representation, says ECA.
Cost Optimal Domestic Electrification CODE
Modelling retrofits only on costs that directly impact the consumer: upfront cost of equipment, energy costs and maintenance costs.
The Warm Homes Plan details released
What's new and what is not, with industry reactions.
Could AI and VR cause an increase the value of heritage?
The Orange book: 2026 Amendment 4 to BS 7671:2018
ECA welcomes IET and BSI content sign off.
How neural technologies could transform the design future
Enhancing legacy parametric engines, offering novel ways to explore solutions and generate geometry.
Key AI related terms to be aware of
With explanations from the UK government and other bodies.
From QS to further education teacher
Applying real world skills with the next generation.
A guide on how children can use LEGO to mirror real engineering processes.
Data infrastructure for next-generation materials science
Research Data Express to automate data processing and create AI-ready datasets for materials research.
Wired for the Future with ECA; powering skills and progress
ECA South Wales Business Day 2025, a day to remember.
AI for the conservation professional
A level of sophistication previously reserved for science fiction.
Biomass harvested in cycles of less than ten years.
An interview with the new CIAT President
Usman Yaqub BSc (Hons) PCIAT MFPWS.
Cost benefit model report of building safety regime in Wales
Proposed policy option costs for design and construction stage of the new building safety regime in Wales.
Do you receive our free biweekly newsletter?
If not you can sign up to receive it in your mailbox here.