Budgets, schedules and constructability reviews take real work. A precon agreement makes sure it's paid and valued.
In this article
Why precon agreements matter
Many contractors spend weeks on budgets, schedules and design reviews hoping to win the job. Sometimes the owner takes the numbers to another builder. A preconstruction services agreement turns that work into a paid service and sets expectations on both sides.
What it covers
Budgets at design milestones, schedules, constructability reviews, value engineering and site logistics.
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Fees
Fixed fee, hourly or credited toward the construction contract if you build the project.
Deliverables
List what you will deliver and when: estimates at each design phase, schedule, reports.
Ownership of documents
Clarify who can use your budgets and schedules.
Transition to construction
Define how the agreement converts into a construction contract.
Exit terms
If the project doesn't go forward, the work is still paid.
Team
Name who from your team will be involved.
A message to the owner
"We'd be glad to support you in design. Our precon agreement covers budgets at each phase, a schedule and constructability reviews, and the fee is credited if we build the project."
Where to start
Write a two-page precon agreement template with scope, fee options and deliverables.
Common mistakes
Doing precon for free, unclear deliverables and no terms for when the project stops.
Know your numbers
Track hours spent on precon per project, fee recovered and how many precon clients become construction contracts. That conversion rate shows whether precon is a sales tool or a giveaway.
Run tighter jobs and win the right ones.
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Frequently asked questions
What is a preconstruction services agreement?
A contract between the owner and the contractor for services before construction, such as budgeting, scheduling, constructability reviews and value engineering, usually with a fee and defined deliverables.