Document background
The Construction Letter of Intent is a crucial document in Swiss construction projects, typically used when parties have reached preliminary agreement on key terms but require a formal framework for pre-construction activities before executing the final construction contract. It serves as a bridge between initial negotiations and the final agreement, allowing parties to commence preliminary works while finalizing contract details. Under Swiss law, particularly the Swiss Code of Obligations, such letters must carefully balance expressing serious intent while avoiding unintended binding obligations. The document typically includes provisions for exclusivity, cost allocation, and preliminary works, while clearly stating which provisions are binding and non-binding. It's particularly valuable in complex construction projects where significant preliminary work or investigation is required before final contract execution.
