Common use of Construction Allowance Clause in Contracts

Construction Allowance. The costs and expenses for Landlord's Work based on the Approved Plans are subject to either a Fixed Price Construction Allowance or a Cost Plus Construction Allowance as set forth in the SLP. In either event, Landlord shall be responsible for all cost overruns in excess of the applicable Construction Allowance, and the same shall not be billed to School or increase the Base Rent to be paid by School. If the Cost Plus Construction Allowance applies, Landlord shall provide School monthly during the construction of Landlord's Work with all invoices and bills for materials and labor related to Landlord's Work. The following costs and expenses shall be included in the cost of Landlord's Work (collectively "Cost of Work"): a. Salaries or wages of all labor including foremen, mechanics, drivers, sub- contractors, laborers, and all others necessary for the proper conduct of the work and for the time employed on the work, together with any Social Security and taxes in connection with such labor. b. Disbursements made and obligations incurred for or in connection with the furnishing, delivery and installation of all materials, structural accessories, machinery, equipment and other items required to be furnished and done hereunder; also for and in connection with the construction equipment and maintenance at the site of the work, and elsewhere as required; and for or in connection with all insurance, bonds, fees, royalties and permits. c. Disbursements made and obligations incurred pursuant to subcontracts made hereunder, less all counter charges collected from subcontractors. d. All utilities utilized during the Landlord's Work. e. All loading and unloading, express and freight delivery charges. f. Disbursements for materials or supplies furnished from Landlord's stock which shall be charged to the work at a fair market price. g. All costs of capital employed and money borrowed. h. All surveys, inspections and tests of the site. i. All necessary approvals, easements, assessments and charges required for the construction, use or occupancy of permanent structures or permanent changes in existing facilities. The term Cost of Work shall not include salaries of Landlord's officers or salaries of any Person employed in the office of Landlord. Landlord's overhead or general expenses of any kind related to Landlord's Work and Landlord's profit shall not be deemed a Cost of Work, but rather are incorporated within the Cost Plus Percentage as set forth in the SLP.

Construction Allowance. The costs Subject to the terms and expenses for Landlord's provisions of this Work based on the Approved Plans are subject to either a Fixed Price Construction Allowance or a Cost Plus Construction Allowance as set forth in the SLP. In either eventLetter, Landlord shall be responsible for all pay the cost overruns in excess of the applicable Tenant Improvements ("Work") up to the amount the Landlord's Construction Allowance, and subject to the same shall not be billed to School or increase terms of Addendum if properly requested by Tenant, the Base Rent to be paid by SchoolAdditional TI Allowance. If the Cost Plus amount of the lowest qualified bid to perform the Work exceeds the Landlord's Construction Allowance appliesand the Additional TI Allowance (if so requested by Tenant in accordance with the terms of Addendum Four), Tenant shall bear the cost of such excess and shall pay the estimated cost of such excess to Landlord prior to commencement of construction of such Tenant Improvements and a final adjusting payment based upon the actual costs of the Tenant Improvements shall be made when the Tenant Improvements are completed. If the cost of the Work is less than such amount, then Tenant shall not receive any credit whatsoever for the difference between the actual cost of the Work and Landlord's Construction Allowance. All remaining amounts due to Landlord shall provide School monthly during be paid upon the construction earlier of Landlord's Work with all invoices and bills for materials and labor related to Landlord's Substantial Completion of the Tenant Improvements or presentation of a written statement of the sums due, which statement may be an estimate of the cost of any component of the Work. The following costs cost of the permits, hard construction costs, fees, permits and expenses general contract overhead shall be payable out of the Landlord's Construction Allowance and shall be included in the cost of Landlord's Work (collectively "Cost the Work. The cost of Work"): a. Salaries or wages of all labor including forementhe asbestos testing, mechanics, drivers, sub- contractors, laborersarchitecture, and all others necessary engineering fees shall be paid for by Landlord, and shall not be included in the proper conduct cost of the work and for the time employed on the work, together with any Social Security and taxes in connection with such labor. b. Disbursements made and obligations incurred for or in connection with the furnishing, delivery and installation of all materials, structural accessories, machinery, equipment and other items required to be furnished and done hereunder; also for and in connection with the construction equipment and maintenance at the site Work. The cost of the work, and elsewhere as required; and for or in connection with all insurance, bonds, fees, royalties and permits. c. Disbursements made and obligations incurred pursuant to subcontracts made hereunder, less all counter charges collected from subcontractors. d. All utilities utilized during the Landlord's Work. e. All loading and unloading, express and freight delivery charges. f. Disbursements for materials or supplies furnished from Landlord's stock which shall be charged to the work at a fair market price. g. All costs of capital employed and money borrowed. h. All surveys, inspections and tests of the site. i. All necessary approvals, easements, assessments and charges required for the construction, use or occupancy of permanent structures or permanent changes in existing facilities. The term Cost of Work shall not include salaries of Landlord's officers or salaries of any Person employed in the office of Landlord. Landlord's overhead or general expenses of any kind related other fees payable to Landlord's Work and Landlord's profit shall not be deemed a Cost of Work, but rather are incorporated within the Cost Plus Percentage as set forth in the SLP.

Construction Allowance. 888 The costs and expenses for Landlord's Work based on the Approved Plans are subject to either a Fixed Price Construction Allowance or a Cost Plus Construction Allowance as set forth in the SLP. In either event, Landlord shall be responsible for all cost overruns in excess of the applicable Construction Allowance, and the same shall not be billed to School or increase the Base Rent to be paid by School. School.889 If the Cost Plus Construction Allowance applies, Landlord shall provide School monthly during the construction of Landlord's Work with all invoices and bills for materials and labor related to Landlord's Work. The following costs and expenses shall be included in the cost of Landlord's Work (collectively "Cost of Work"):Work"):890 a. Salaries or wages of all labor including foremen, mechanics, drivers, sub- contractors, laborers, and all others necessary for the proper conduct of the work and for the time employed on the work, together with any Social Security and taxes in connection with such labor.labor.891 b. Disbursements made and obligations incurred for or in connection with the furnishing, delivery and installation of all materials, structural accessories, machinery, equipment and other items required to be furnished and done hereunder; also for and in connection with the construction equipment and maintenance at the site of the work, and elsewhere as required; and for or in connection with all insurance, bonds, fees, royalties and permits.permits.892 c. Disbursements made and obligations incurred pursuant to subcontracts made hereunder, less all counter charges collected from subcontractors.subcontractors.893 d. All utilities utilized during the Landlord's Work.Work.894 e. All loading and unloading, express and freight delivery charges.charges.895 f. Disbursements for materials or supplies furnished from Landlord's stock which shall be charged to the work at a fair market price.price.896 g. All costs of capital employed and money borrowed.borrowed.897 h. All surveys, inspections and tests of the site.site.898 i. All necessary approvals, easements, assessments and charges required for the construction, use or occupancy of permanent structures or permanent changes in existing facilities. facilities.899 The term Cost of Work shall not include salaries of Landlord's officers or salaries of any Person employed in the office of Landlord. Landlord.900 Landlord's overhead or general expenses of any kind related to Landlord's Work and Landlord's profit shall not be deemed a Cost of Work, but rather are incorporated within the Cost Plus Percentage as set forth in the SLP.SLP.901