Common use of Construction Contract; Cost Budget Clause in Contracts

Construction Contract; Cost Budget. Prior to Tenant's execution of the construction contract and general conditions with Contractor (the "CONTRACT"), Tenant shall submit the Contract to Landlord for its approval, which approval shall not be unreasonably withheld or delayed; provided, however, Landlord hereby acknowledges that a delay of more than three (3) business days shall be deemed unreasonable. Prior to the commencement of the construction of the applicable phase of the Tenant Improvements, and after Tenant has accepted all bids for such phase of the Tenant Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in SECTION 2.2.1, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "FINAL COSTS"). If the amount of the Final Costs is greater than the amount of the Tenant Improvement Allowance (after deducting from the Tenant Improvement Allowance any amounts expended in connection with the preparation of the Construction Drawings, and the cost of all other Tenant Improvement Allowance Items incurred prior to the commencement of construction of the Tenant Improvements) (the "OVER-ALLOWANCE AMOUNT"), then Tenant shall be solely responsible for such Over-Allowance Amount.

Construction Contract; Cost Budget. Prior 4.2.1.1 Tenant shall execute a construction contract (which Contract shall incorporate Landlord’s general conditions, attached hereto as Schedule 3) with the Contractor (each, a "Contract") for the Phase I Premises Improvements, the Phase II Premises Improvements, the Must-Take Space Improvements and, in the event Tenant exercises its Deferred Delivery Right pursuant to Tenant's execution Section 2.1 of the construction contract and general conditions with Contractor (Lease, the "CONTRACT"), Tenant shall submit portion of the Contract Phase II Premises Improvements applicable to Landlord for its approval, which approval shall not be unreasonably withheld or delayed; provided, however, Landlord hereby acknowledges that a delay of more than three (3) business days shall be deemed unreasonablethe Deferred Space. Prior to the commencement of the construction of the applicable phase of the Tenant Improvements, and after Tenant has accepted all bids for such phase of the Tenant Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in SECTION 2.2.1Sections 2.2.1.1 through 2.2.1.8, above, in connection with the design and construction of the Tenant applicable Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the applicable Contract (the "FINAL COSTSFinal Costs"). If the amount Landlord may elect by written notice to Tenant (“Landlord’s Construction Risk Notice”) to Tenant no later than ten (10) business days following Tenant’s delivery of the applicable Final Costs is greater than and construction schedule pursuant to the amount TCCs of Section 29.18 of the Tenant Improvement Allowance Lease to apply the Construction Risk Alternative (after deducting as defined below) for each Contract in order that Landlord may satisfy its REIT related obligations with respect to timely recognizing revenue from this Lease (as determined by Landlord in its sole discretion), and in such case the Tenant Improvement Allowance any amounts expended in connection with the preparation provisions of the Construction Drawings, and the cost of all other Tenant Improvement Allowance Items incurred prior Risk Alternative shall automatically apply to the commencement of construction of the Tenant Improvements) (the applicable Improvements and be binding upon Tenant. The term "OVER-ALLOWANCE AMOUNT"), then Tenant shall be solely responsible for such Over-Allowance Amount.

Construction Contract; Cost Budget. Prior to Tenant's execution of Tenant shall engage the Contractor under a construction contract and general conditions with Contractor (collectively, the "CONTRACTContract"), Tenant shall submit the Contract to Landlord for its approval, which approval shall not be unreasonably withheld or delayed; provided, however, Landlord hereby acknowledges that a delay of more than three (3) business days shall be deemed unreasonable. Prior to the commencement of the construction of the applicable phase of the Tenant Improvements, and after Tenant has accepted all bids for such phase of the Tenant Improvements, Tenant shall provide Landlord with a (i) a copy of the fully executed Contract, (ii) Tenant's proposed construction schedule for the construction and completion of the Improvements (the "Construction Schedule"), and (iii) detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in SECTION 2.2.1Sections 2.2.1.1 through 2.2.1.8, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "FINAL COSTSFinal Costs"). The Final Costs provided by Tenant shall include two (2) separate schedules of values for the Improvements: (a) the first of which shall specifically identify certain assets and trades included in the Improvements that, when totaled together, substantially equal the amount of the Improvement Allowance to maximum extent possible without splitting or apportioning the cost of specific line items or trades (the "Landlord SOV"), such that at least ninety percent (90%) of the of the Landlord SOV Improvements shall be constructed by the Allowance Deadline; and (b) the second of which shall include the remainder of the work required in connection with the construction of the Improvements (the "Tenant SOV"). Landlord shall advise Tenant within five (5) business days after Landlord's receipt of the Final Costs if the Landlord SOV and the Tenant SOV are unsatisfactory or incomplete in any respect. If Tenant is so advised, Tenant shall cause the Landlord SOV and the Tenant SOV to be revised to correct any deficiencies or other matters Landlord may reasonably require within five (5) business days of Tenant's receipt of Landlord's notice thereof. The foregoing process shall be continued until the Landlord SOV and Tenant SOV have been approved by Landlord. The Improvement Allowance shall be used for the costs to design and construct the Improvements included in the Landlord SOV (the "Landlord SOV Improvements"). In no event shall Landlord be obligated to make disbursements from the Improvement Allowance for the Improvements included in the Tenant SOV (the "Tenant SOV Improvements") until all disbursements have been made from the Improvement Allowance for all Landlord SOV Improvements. Following Landlord's disbursement of the Improvement Allowance, Tenant shall pay the difference between the amount of the Final Costs is greater than (including any increase in the amount of the Tenant Final Costs during the course of design and construction of the Improvements) and the amount of the Improvement Allowance (after deducting from the Tenant Improvement Allowance any amounts expended in connection with the preparation of the Construction Drawings, and the cost of all other Tenant Improvement Allowance Items incurred prior to the commencement of construction of the Tenant Improvements) (the "OVER-ALLOWANCE AMOUNT"), then Tenant shall be solely responsible for such Over-Allowance Amount") from Tenant's own funds, but Tenant shall continue to provide Landlord with the documents described in Sections 2.2.2.1 (i), (ii), (iii) and (iv) of this Work Letter, above, for Landlord's approval, prior to Tenant paying such costs.

Construction Contract; Cost Budget. Prior to TenantTenant shall engage the Contractor under a Stipulated Sum Agreement (or Guaranteed Maximum Price Contract) accompanied by Landlord's execution of the construction contract general terms and general conditions with Contractor (the "CONTRACTGeneral Conditions"), which General Conditions shall be in the form attached as Schedule 1 hereto (collectively, the "Contract"). The Contract shall include the provision set forth in Schedule 2 attached hereto. At such time as Tenant enters into a Contract, Tenant shall submit provide Landlord with a final budget with respect to the Contract to Landlord for its approval, which approval shall not be unreasonably withheld or delayed; provided, however, Landlord hereby acknowledges that a delay of more than three (3) business days shall be deemed unreasonableImprovements covered by such Contract. Prior to the commencement of the construction of the Improvements within the applicable phase of the Tenant ImprovementsPhase(s), and after Tenant has accepted all bids for the Improvements within such phase of the Tenant ImprovementsPhase(s), Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in SECTION 2.2.1Sections 2.2.1.1 through 2.2.1.8, above, in connection with the design and construction of the Tenant Improvements within each Phase to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract with respect to such Phase(s) (the "FINAL COSTSFinal Costs"). If the Final Costs for the subject Phase(s) are estimated to be more than such amounts shown on the Estimated Budget, then the pari passu ratio described in Section 4.2.1 above shall be equitably modified by Landlord and Tenant, provided that (i) in no event shall Landlord be obligated to pay an aggregate amount in excess of the Final Costs is greater than Improvement Allowance and the amount Space Planning Allowance for the design and construction of all of the Tenant Improvement Allowance (after deducting from the Tenant Improvement Allowance any amounts expended in connection with the preparation Improvements for all of the Construction DrawingsPhases combined, and the cost of all other Tenant Improvement Allowance Items incurred prior (ii) Landlord's obligations to pay Landlord's pari passu share with respect to the commencement of construction of the Tenant Improvementssubject Phase(s) (the "OVER-ALLOWANCE AMOUNT"), then Tenant shall be solely responsible for such Over-Allowance Amountsubject to Landlord's right to retain the Final Retention(s) pursuant to Section 2.2.2 above.

Construction Contract; Cost Budget. Prior to TenantXxxxxx's execution of the construction contract and general conditions with Contractor (the "CONTRACTContract"), Tenant shall submit the Contract to Landlord for its approval, which approval shall not be unreasonably withheld or delayed; provided, however, Landlord hereby acknowledges that a delay of more than three (3) business days shall be deemed unreasonable. Prior to the commencement of the construction of the applicable phase of the Tenant Improvements, and after Tenant Xxxxxx has accepted all bids for such phase of the Tenant Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be incurred or which have been incurred, as set forth more particularly in SECTION 2.2.1Sections 2.2.1.1 through 2.2.1.8 of this Tenant Work Letter, above, in connection with the design and construction of the Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a basis for the amount of the Contract (the "FINAL COSTSFinal Costs"). If the amount of the Final Costs is greater than the amount of the Tenant Improvement Allowance (after deducting from the Tenant Improvement Allowance any amounts expended in connection with the preparation of the Construction Drawings, and the cost of all other Tenant Improvement Allowance Items incurred prior Prior to the commencement of construction of the Tenant Improvements) , Tenant shall supply Landlord with cash in an amount (the "OVER-ALLOWANCE AMOUNT"), then Tenant shall be solely responsible for such Over-Allowance Amount") equal to the difference between the Final Costs exceed the sum of (i) the Tenant Improvement Allowance, plus (ii) any Additional Allowance elected to be received by Tenant pursuant to Section 2.1.2 above). The Over-Allowance Amount shall be disbursed by Landlord prior to the disbursement of any of the then remaining portion of the Allowances, and such disbursement shall be pursuant to the same procedure as the Allowances. In the event that, after the Final Costs have been delivered by Tenant to Landlord, the costs relating to the design and construction of the Tenant Improvements shall change, any additional costs necessary to such design and construction in excess of the Final Costs, shall be paid by Tenant to Landlord immediately as an addition to the Over- Allowance Amount or at Landlord's option, Tenant shall make payments for such additional costs out of its own funds, but Tenant shall continue to provide Landlord with the documents described in Sections 2.2.2.1 (i), (ii), (iii) and (iv) of this Tenant Work Letter, above, for Landlord's approval, prior to Tenant paying such costs.