City’s Approval of Costs. Upon completion of the Pricing Plans, General Contractor shall prepare a good faith initial construction budget (“ROM”) which includes all project hard and soft costs. City shall have the right to request (3) competitive bids from subcontractors in a revised ROM from each trade in connection with all work performed by Landlord or General Contractor hereunder. If necessary, the Construction Plans shall be revised and completed such that the cost of the Leasehold Improvement Work does not exceed the approved ROM. Prior to commencing construction of the Leasehold Improvement Work, Landlord shall prepare and submit to City, based on the Construction Plans, a good faith budget for the Leasehold Improvement Work, showing all costs to be paid by City, including a contractor contingency of three percent (3%) (the “Construction Budget”) or such other contingency reasonably approved by City. Provided the Construction Budget does not exceed the ROM, City shall have five (5) business days to review and approve or disapprove the Construction Budget. If City fails to approve or disapprove the Construction Budget that does not exceed the ROM within such five-day period, the Construction Budget shall be deemed approved. If such Construction Budget exceeds the ROM, Architect, General Contractor, and City shall at City’s option diligently pursue reductions in scope so that the Construction Budget can be equal to or less than the ROM. If during the course of construction, the Leasehold Improvement Work cannot be completed in conformity with the most recently City approved Construction Budget, Landlord shall immediately submit to City for its approval a revised Construction Budget and shall identify to City changes in line items and the reasons for the changes. City acknowledges that renovation or improvement of existing facilities inherently involves risk of unanticipated costs necessary to obtain a Final Certificate of Occupancy. If further changes are required, Landlord shall seek City’s approval, following the same procedures. If costs exceed the approved Construction Budget, the parties agree to meet and confer in good faith to either (i) obtain City approval of any increased costs, with an appropriation for such amount or (ii) revise the Leasehold Improvement Work so that it does not exceed the most recently City approved Construction Budget. City shall have the right to reasonably approve or disapprove any Construction Budget or revised Construction Budgets in its reas...
City’s Approval of Costs. As soon as practicable and prior to permit submittal, Landlord shall provide to City, for City’s approval, a good faith initial construction budget (“ROM”) based on the Preliminary Construction Plans. City shall have five (5) business days to review and approve or disapprove the ROM. If City desires to reduce the ROM, Landlord and City shall work in good faith to promptly reduce the scope of work and the ROM, and the Construction Plans shall be revised as required to reflect such changes. Prior to commencing construction of the Leasehold Improvement Work, Landlord shall prepare and submit to City, based on the Construction Plans, a not to exceed cost for the Leasehold Improvement Work, showing all costs to be paid from the Allowance (as defined below) or by City, including a Contractor contingency of five percent (5%). City shall have five
