A document saying the owner intends to hire the contractor, sometimes authorizing them to start limited work before the full contract is signed.
A letter of intent (LOI) is a document expressing a party's intention to enter into a formal contract in the future and may authorize limited preliminary work before contract execution. LOIs are used when parties need to begin work before all contract terms are finalized. They are potentially binding on the limited scope authorized but should be followed by a fully executed contract as soon as possible.
The owner issued a letter of intent authorizing the contractor to order long-lead materials while the full contract was being finalized.
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