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RMS Titanic passenger liner
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RMS Titanic Passenger Liner

The White Star Line faced a growing challenge from its main rivals Cunard, which had just launched the Lusitania and the Mauretania— the fastest passenger ships then in service — and the German lines Hamburg America and Norddeutscher Lloyd. Ismay preferred to compete on size rather than speed and proposed to commission a new class of liners that would be bigger than anything that had gone before as well as being the last word in comfort and luxury. The company sought an upgrade in their fleet primarily in response to the Cunard giants but also to replace their oldest pair of passenger ships still in service, being the SS Teutonic of 1889 and SS Majestic of 1890. Teutonic was replaced by Olympic while Majestic was replaced by Titanic. Majestic would be brought back into her old spot on White Star's New York service after Titanic's loss.
The ships were constructed by the Belfast shipbuilders Harland and Wolff, who had a long-established relationship with the White Star Line dating back to 1867. Harland and Wolff were given a great deal of latitude in designing ships for the White Star Line; the usual approach was for the latter to sketch out a general concept which the former would take away and turn into a ship design. Cost considerations were relatively low on the agenda and Harland and Wolff was authorised to spend what it needed on the ships, plus a five percent profit margin. In the case of the Olympic-class ships, a cost of £3 million for the first two ships was agreed plus "extras to contract" and the usual five percent fee.
Harland and Wolff put their leading designers to work designing the Olympic-class vessels. The design was overseen by Lord Pirrie, a director of both Harland and Wolff and the White Star Line; naval architect Thomas Andrews, the managing director of Harland and Wolff's design department; Edward Wilding, Andrews' deputy and responsible for calculating the ship's design, stability and trim; and Alexander Carlisle, the shipyard's chief draughtsman and general manager. Carlisle's responsibilities included the decorations, equipment and all general arrangements, including the implementation of an efficient lifeboat davit design.
On 29 July 1908, Harland and Wolff presented the drawings to J. Bruce Ismay and other White Star Line executives. Ismay approved the design and signed three "letters of agreement" two days later authorising the start of construction. At this point the first ship—which was later to become Olympic—had no name, but was referred to simply as "Number 400", as it was Harland and Wolff's four hundredth hull. Titanic was based on a revised version of the same design and was given the number 401.

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