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Preconstruction Project Statement

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Preconstruction Project Statement

Parties and Project Identification

This Preconstruction Project Statement ("Statement") is entered into by Client Name: and Preconstruction Consultant: .

Project Name:   Project Address:

WHEREAS

WHEREAS, Client requires preconstruction planning, cost estimating, scheduling and advisory services in connection with the Project described above; and

WHEREAS, Consultant represents that it has the experience, personnel and resources necessary to perform preconstruction services and agrees to provide such services under the terms and conditions set forth in this Statement; and

NOW, THEREFORE, the parties agree as follows.

Scope of Work

Payment Terms

Total Preconstruction Fee:   Currency:

Deposit Required:   Due on execution:

Late Payment Charge:   (applies to overdue undisputed amounts)

Reimbursable Expenses Included:   If checked, Expense Cap:

Term and Termination

Effective Date:   Anticipated Completion Date:

Either party may terminate this Statement for convenience upon written notice to the other party at least days in advance.

On termination, Consultant shall be entitled to payment for all work performed and expenses reasonably incurred to the date of termination, plus any costs reasonably associated with the orderly close-out of the preconstruction services.

Confidentiality

Each party acknowledges that in the course of performing under this Statement it may receive confidential and proprietary information of the other party ("Confidential Information"). Confidential Information shall not include information that: (a) is or becomes publicly available through no breach by the receiving party; (b) is rightfully received from a third party without restriction; (c) is independently developed by the receiving party without use of the disclosing party's Confidential Information; or (d) is required to be disclosed by law, provided the disclosing party is given prompt notice and reasonable assistance in seeking confidential treatment or a protective order.

The receiving party shall hold Confidential Information in confidence and shall not disclose such information to any third party except to its employees, agents or subcontractors who have a need to know and who are bound by confidentiality obligations no less protective than those set forth herein. On termination or expiration, the receiving party shall return or destroy the disclosing party's Confidential Information upon request.

Governing Law; Dispute Resolution

This Statement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

The parties shall attempt in good faith to resolve any dispute arising out of or relating to this Statement by negotiation between senior representatives. If the dispute is not resolved by negotiation within thirty (30) days, the parties may pursue any remedy available at law or in equity.

Representations; Entire Agreement

Each party represents and warrants that it has the full right, power and authority to enter into this Statement and to perform its obligations hereunder. Consultant represents that services will be performed in a workmanlike manner consistent with industry standards.

This Statement, together with any attachments, exhibits or written amendments executed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

Miscellaneous Provisions

Assignment: Neither party may assign its rights or delegate its duties under this Statement without the prior written consent of the other party, except that Consultant may assign to a successor entity in connection with a merger or sale of substantially all of its assets.

Insurance: Consultant shall maintain insurance coverages customary for preconstruction services and upon request provide certificates evidencing such coverage.

Client Printed Name:

By:

Date:

Title:

Consultant Printed Name:

By:

Date:

Title:

Enter text✕

What a Preconstruction Project Statement Is

A Preconstruction Project Statement is a concise, written summary prepared before work begins that describes project scope, key deliverables, preliminary budget estimates, schedule milestones, site constraints, and permitting requirements. It frames expectations among owners, design professionals, contractors, and consultants and serves as a reference for planning, bid solicitation, and early-stage approvals. The statement often highlights major risks, required approvals, required inspections, and any unusual site conditions so stakeholders can address cost and schedule implications before executing construction contracts.

Why this statement matters for project clarity

A well-prepared Preconstruction Project Statement reduces ambiguity, sets alignment on scope and budget assumptions, and speeds decision-making during procurement and permitting. It helps minimize change orders and supports accurate cost estimating before contract award.

Why this statement matters for project clarity

Who typically prepares and relies on this statement

Multiple stakeholders use the Preconstruction Project Statement to align expectations and responsibilities prior to mobilization.

  • Owners and developers: use the statement to confirm budget, schedule, and approval risk before soliciting bids.
  • General contractors: rely on the statement for preliminary means-and-methods planning and subtrade coordination assumptions.
  • Design professionals: validate design milestones, permit deliverables, and site-condition assumptions early in the project lifecycle.

Clear ownership of the statement and timely distribution improves procurement outcomes and reduces later disputes.

Core elements of a professional Preconstruction Project Statement

A complete statement groups essential project data so reviewers can assess scope, cost, schedule, approvals, and risks at a glance.

Project Summary

One- to two-paragraph overview describing purpose, location, client, and high-level objectives to orient stakeholders and contracting teams.

Scope & Deliverables

Clear list of included work, excluded items, key technical requirements, and any phased deliverables to prevent scope creep during bidding.

Schedule & Milestones

Preliminary timeline showing procurement windows, permit lead times, critical path dates, and anticipated start and completion milestones.

Budget & Allowances

Estimated cost ranges, major line-item allowances, provisional sums, and assumptions used for estimating to set realistic financial expectations.

Risks & Contingencies

Known site constraints, permitting risks, utility coordination issues, and recommended contingency percentages tied to specific exposures.

Approvals & Permits

List of required permits, responsible party for filings, expected review times, and any agency-specific submittal requirements.

Step-by-step process to complete the statement

Follow these sequential steps to draft, review, and finalize a usable Preconstruction Project Statement.

  • 01
    Gather documents: Collect site plans, geotechnical reports, permits, and prior estimates.
  • 02
    Draft header: Fill project name, parties, effective date, and contact information.
  • 03
    Detail scope: List inclusions, exclusions, milestones, and assumptions.
  • 04
    Review and sign: Circulate to stakeholders, resolve comments, and obtain authorized signatures.

Configuring an online workflow for the statement

When using an e-signature platform, configure fields and routing to match your approval sequence and retention rules.

Field Configuration
Authentication Email or SMS code; use stronger methods for high-risk approvals
Field Types Text, date, checkboxes, numeric fields with validation
Conditional Logic Show or hide sections based on role or response
Retention Attach retention policy and automatic archival settings

Typical e-submission flow for distribution and signing

A predictable digital flow reduces friction and preserves audit evidence for the signed statement.

  • Upload Document: Sender uploads final statement PDF or DOCX.
  • Place Fields: Add signature, initials, and date fields for each party.
  • Send to Signers: Route in order or via parallel links for multiple signers.
  • Archive & Share: Store signed copy and distribute certificates to stakeholders.

Digital signing and technical considerations

Choose a platform that supports required file formats, secure authentication, and integration with your project systems.

  • File formats: PDF, DOCX, XLSX supported
  • Integrations: Salesforce, Procore, Google Workspace
  • Authentication: Email, SMS, or advanced 2FA

Ensure the platform can export audit trails, preserve originals, and meet any industry-specific compliance requirements before e-submitting.

Typical eSignature vendor comparison for signing and routing

This comparison highlights common feature and pricing differences among mainstream vendors; signNow is listed first per platform comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Common timing expectations and review windows

Identify and commit to internal deadlines for drafting, review, permitting, and signature to avoid project delays.

Pre-submittal review:

Allow 7–14 calendar days for internal comments and revisions

Permit review:

Expect 14–60 days depending on permit type and jurisdiction

Bid solicitation:

Publish statement and bid package at least 14 days before bid closing

Signature deadlines:

Set signer response windows (e.g., 7–14 days) and follow up two business days before expiry

Archival:

Archive signed copy within 7 days of final signature

Common mistakes that slow approval or create disputes

  • Unclear scope descriptions that omit assumed exclusions, causing differing bidder interpretations and costly change orders.
  • Missing or inconsistent dates and versioning that lead parties to sign different drafts or misunderstand effective obligations.
  • Omitting permit dependencies or long-lead items, which postpones start dates and increases contingency drawdowns.
  • Incorrect signer authority or name mismatches that delay execution or require re-signatures during procurement.

Risks and potential consequences of an incomplete statement

Contract Delay: Schedule slippage
Cost Overruns: Unforeseen change orders
Permit Rejection: Agency resubmittal required
Disputes: Increased litigation risk
Payment Holdups: Delays to cash flow
Record Deficiencies: Noncompliance in audits

Recordkeeping, security, and compliance details

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest
Audit Trail: Comprehensive timestamp and IP logging
ESIGN / UETA: Meets ESIGN and UETA legal standards
HIPAA: HIPAA support available (BAA required)
ISO / SOC: ISO 27001 and SOC 2 Type II
Accessibility: WCAG 2.0 Level AA compliance

Frequently asked questions about Preconstruction Project Statements

Answers to typical questions about electronic execution, notarization, signatory authority, amendments, retention, and common execution errors.


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