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
Cutting carbon, cost and risk in estate management
Lessons from Cardiff Met’s “Halve the Half” initiative.
Inspiring the next generation to fulfil an electrified future
Technical Manager at ECA on the importance of engagement between industry and education.
Repairing historic stone and slate roofs
The need for a code of practice and technical advice note.
Environmental compliance; a checklist for 2026
Legislative changes, policy shifts, phased rollouts, and compliance updates to be aware of.
UKCW London to tackle sector’s most pressing issues
AI and skills development, ecology and the environment, policy and planning and more.
Managing building safety risks
Across an existing residential portfolio; a client's perspective.
ECA support for Gate Safe’s Safe School Gates Campaign.
Core construction skills explained
Preparing for a career in construction.
Retrofitting for resilience with the Leicester Resilience Hub
Community-serving facilities, enhanced as support and essential services for climate-related disruptions.
Some of the articles relating to water, here to browse. Any missing?
Recognisable Gothic characters, designed to dramatically spout water away from buildings.
A case study and a warning to would-be developers
Creating four dwellings... after half a century of doing this job, why, oh why, is it so difficult?
Reform of the fire engineering profession
Fire Engineers Advisory Panel: Authoritative Statement, reactions and next steps.
Restoration and renewal of the Palace of Westminster
A complex project of cultural significance from full decant to EMI, opportunities and a potential a way forward.
Apprenticeships and the responsibility we share
Perspectives from the CIOB President as National Apprentice Week comes to a close.
The first line of defence against rain, wind and snow.
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this.