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
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.