Additional Construction Allowance Clause Samples
The Additional Construction Allowance clause defines the terms under which extra funds may be provided to cover construction costs that exceed the original budget. Typically, this clause specifies the circumstances in which the allowance can be accessed, such as unforeseen site conditions or changes in project scope, and outlines the process for requesting and approving additional funds. Its core practical function is to provide a structured mechanism for managing unexpected expenses during construction, thereby reducing disputes and ensuring the project can proceed without unnecessary delays.
Additional Construction Allowance. Provided that Tenant shall have timely paid its Rent and otherwise sha11 have fulfilled its obligations under the Lease during the first two years of the initial Term of the Lease, and further provided that no Event of Default then exists, after the second anniversary date of the Commencement Date of the Lease, Tenant shall be entitled to an additional construction allowance of sum not to exceed $4.00 per 1 SF in the Premises (the "Additional Construction Allowance"). Notwithstanding the foregoing, any additional tenant improvements to which Tenant desires to apply the Additional Construction Allowance shall be subject to Landlord's prior written approval and also subject to all provisions of the Lease concerning the construction of improvements or Alterations at the Premises, including but not limited to Paragraph 11 thereof.
Additional Construction Allowance. In addition to the Expansion Space Allowance, Landlord has agreed to provide Tenant at Tenant’s election, with an additional improvement allowance in an amount up to Nine Thousand Three Hundred Twenty-Eight and No/100 Dollars ($9,328.00) (the “Additional Allowance”) for the design, construction and installation of the Expansion Space Improvements and payment of the Construction Management Fee. Tenant shall repay the full amount of the Additional Allowance, together with interest thereon at a rate equal to twelve percent (12%) per annum, to Landlord as additional rent under the Lease in equal monthly, self amortizing payments throughout the Term. Accordingly, in addition to all other amounts due and payable by Tenant under the Lease, commencing as of the Expansion Space Commencement Date, Tenant shall pay additional monthly rent to Landlord in an amount equal to Two Hundred Twelve and 40/100 Dollars ($212.40) per month throughout the Term. Such additional amount shall be deemed Rent for purposes of the Lease and shall be subject to acceleration in the event of a default by Tenant under the Lease. All other terms and conditions applicable to the disbursement of the Allowance shall apply to the disbursement of the Additional Allowance.
Additional Construction Allowance. At City's request, in addition to the Allowance, Landlord shall provide an additional allowance for construction of the Leasehold Improvements to the Initial Premises and Additional Premises (each, an "Additional Construction Allowance"). The Additional Construction Allowance shall be in the amount of Two Hundred Sixty Three Thousand One Hundred Dollars ($263,100.00) for the Initial Premises and in the amount of One Hundred Thirty Six Thousand Nine Hundred Dollars ($136,900.00) for the Additional Premises. Commencing on the Commencement Date, with respect to the Initial Premises, and the Additional Premises Commencement Date, with respect to the Additional Premises, and continuing until such sum is repaid in full, City shall pay Landlord on a monthly basis, as additional Rent, the sum required to amortize the Additional Construction Allowance on a straight-line basis with interest on unpaid sums at seven percent (7%) per annum, over the period commencing on the Commencement Date with respect to the Initial Premises and the Additional Premises Commencement Date with respect to the Additional Premises, and ending on the Expiration Date (without regard to the Extension Option) (each such monthly payment, an "Additional Construction Allowance Amortization Payment"). Landlord and City shall confirm in writing the amounts of the Additional Construction Allowance disbursed hereunder and the amounts of the Additional Construction Allowance Amortization Payment(s). City may prepay part or all of the Additional Construction Allowance at any time without pre-payment penalty.
Additional Construction Allowance. The amount of the Construction Allowance shall be increased by an additional Two Hundred Thousand and 00/100 Dollars ($200,000.00) (the “Additional Construction Allowance”) if and when the Stabilization Event (as defined in Section 7 below) is satisfied. In such event, Landlord and Tenant shall execute an amendment to this Lease confirming the new increased amount of the Construction Allowance. All of the other terms and conditions applicable to the disbursement of the Construction Allowance provided for in Section 5 above shall apply to the disbursement of the Additional Construction Allowance. Notwithstanding anything herein to the contrary, if the total amount of the Construction Allowance and/or the Additional Construction Allowance exceeds the total cost of Initial Tenant Work (such excess, the “Excess Allowance”), then Landlord agrees that, upon T▇▇▇▇▇’s written request, Tenant shall have the right to have any such Excess Allowance credited towards the monthly installment(s) of Base Rent becoming due hereunder (until such Excess Allowance available for such credit is exhausted) commencing in the first month subsequent to Substantial Completion of the Initial Tenant Work that a monthly installment of Base Rent becomes due. In the event Tenant desires any such credit, Tenant shall notify Landlord of the amounts that T▇▇▇▇▇ wants credited within ninety (90) days following Substantial Completion of the Initial Tenant Work. Notwithstanding anything provided herein, in no event shall such credit of Base Rent exceed One Hundred Thousand and 00/100 Dollars ($100,000.00).
Additional Construction Allowance. At Tenant's option, exercisable (if at all) by written notice to Landlord given no later than the Lease Commencement Date, Tenant may increase the amount of the Construction Allowance up to an amount equal to twenty-four dollars ($24.00) per rentable square foot of the Premises (the “Additional Construction Allowance”). In such event: (a) the amount of the Additional Construction Allowance shall be amortized over the Term of the Lease at eight percent (8%) per annum interest and shall be payable by Tenant in equal monthly installments as additional Base Rent; and (b) Landlord and Tenant shall execute an amendment to this Lease confirming the new increased amount of the Construction Allowance and the new Base Rent figures.
Additional Construction Allowance. For purposes of confirmation herein, Exhibit “C”, the Additional Construction Allowance shall be incorporated herein and made a part of this Amendment.