Common use of Construction Advisory Fee Clause in Contracts

Construction Advisory Fee. For all activities in connection with or related to construction for the Company and its subsidiaries, Advisor shall receive a fee equal to 6% of the so-called “hard costs” only of any costs of construction on a completed basis based upon amounts set forth as approved on any architect’s certificate issued in connection with such construction from time to time, which fee shall be payable at such time as the applicable architect certifies other costs for payment to third parties. For the purposes of this subpart (g), the phrase “hard costs” shall mean and be all actual costs of construction paid to all contractors, subcontractors and third parties for materials or labor performed as a part of the construction, but does not include items generally deemed to be “soft costs” which are consulting fees, attorneys’ fees, architectural fees, fees of any other professional or permit fees.