We have developed a neutron phase contrast imaging method based on a grating interferometer setup. The principal constituents are two absorption gratings made of gadolinium and a phase modulating grating made of silicon. The design parameters of the setup, such as periodicity, structure heights of the gratings, and the distances between the gratings, are calculated. The fabrication of each grating is described in detail. The produced diffraction gratings were finally characterized within the setup, by locally evaluating the produced contrast (visibility) in each detector pixel, resulting in a visibility map over the whole grating size. An averaged value of 23% is achieved.