Common use of Construction Pricing Clause in Contracts

Construction Pricing. Within 10 business days after the Construction Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate based on a bid from the Contractor, as described in Section 3 below (the “Construction Pricing Proposal”), of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Construction Drawings. The Construction Pricing Proposal shall include a commercially reasonable contingency amount consistent with a guaranteed maximum price (“GMAX”) construction contract. Tenant shall provide Landlord with notice approving or disapproving the Construction Pricing Proposal. If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Construction Drawings that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.5 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant. Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence construction relating to such items.

Construction Pricing. After approval of the Approved Construction Drawings, Landlord shall invite at least three (3) qualified general contractors (which may include Iron Construction, Skyline Construction, and Principal Builders) to submit bids based on the Approved Construction Drawings. Within 10 ten (10) business days after the Approved Construction Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate based on a bid from the Contractor, as described in Section 3 below (the “Construction Pricing Proposal”), ) of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Construction Drawings. The Construction Pricing Proposal , which proposal shall include a commercially reasonable contingency amount consistent with a guaranteed maximum price (“GMAX”) construction contractthe bids received by Landlord. Tenant shall provide Landlord with notice (a) approving or disapproving the Construction Pricing Proposal, and (b) selecting one of the contractors included in the Construction Pricing Proposal (the “Contractor”). If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Construction Drawings that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.5 2.7 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant: provided, however, that such procedure shall not require Landlord to re-bid the cost of the performance of the Tenant Improvement Work to any party and instead the Contractor shall just provide a reasonably revised Construction Pricing Proposal. Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence construction relating to such items.

Construction Pricing. After approval of the Approved Construction Drawings, Landlord shall invite at least three (3) qualified general contractors (which may include Iron Construction, Skyline Construction, and Principal Builders) to submit bids based on the Approved Construction Drawings. Within 10 ten (10) business days after the Approved Construction Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate based on a bid from the Contractor, as described in Section 3 below (the “Construction Pricing Proposal”), ) of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Construction Drawings. The Construction Pricing Proposal , which proposal shall include a commercially reasonable contingency amount consistent with a guaranteed maximum price (“GMAX”) construction contractthe bids received by Landlord. Tenant shall provide Landlord with notice (a) approving or disapproving the Construction Pricing Proposal, and (b) selecting one of the contractors included in the Construction Pricing Proposal (the “Contractor”). If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Construction Drawings that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.5 2.7 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant; provided, however, that such procedure shall not require Landlord to re-bid the cost of the performance of the Tenant Improvement Work to any party and instead the Contractor shall just provide a reasonably revised Construction Pricing Proposal. Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence construction relating to such items.

Construction Pricing. Within 10 fifteen (15) business days after the Base Building Construction Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate based on a bid from the Contractor, as described in Section 3 below (the “Construction Pricing Proposal”), ) of the cost of all Improvement Allowance Items to be incurred by Tenant in connection with the performance design and construction of the Tenant Improvement Work Base Building Improvements pursuant to the Approved Base Building Construction DrawingsDrawings and the Approved Additional Programming Information, and which shall detail the application of the Base Building Allowance and show any overage in the estimated aggregate cost for the design and construction of the Base Building Allowance and other allowable costs in excess of the Base Building Allowance. The Construction Pricing Proposal shall include a commercially reasonable contingency amount consistent with a line item stating the guaranteed maximum price (“GMAX”which shall include a customary contingency amount) construction contractset forth in Landlord’s agreement with the general contractor for the Base Building Improvements. Tenant shall provide Landlord with notice approving or reasonably disapproving the Construction Pricing Proposal within ten (10) days after Tenant’s receipt thereof; however, if Tenant does not provide such approval or reasonable disapproval within such ten (10) day period, then Landlord may so notify Tenant in writing and if Tenant again does not approve or disapprove such plans and specifications within five (5) days after Tenant’s receipt of such notice, then Tenant shall be deemed to have approved the Construction Pricing Proposal. If Tenant disapproves the Construction Pricing Proposal, then Tenant’s notice of reasonable disapproval shall be accompanied by proposed revisions to the Approved Base Building Construction Drawings and/or the Approved Additional Programming Information that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.5 1.6 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant. Upon Tenant’s approval (or deemed approval) of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence begin construction relating to such itemsitems in accordance with the Construction Schedule (as hereinafter defined).

Construction Pricing. 2.6.1 Within 10 12 business days after the Construction Drawings later to occur of the date that (a) the Approved Architectural Plans are approved by Landlord and TenantTenant and (b) Landlord has received the electronic copy of the Approved Architectural Plans pursuant to Section 2.5 above, Landlord shall provide Tenant with Landlord’s reasonable estimate based on a bid from the Contractor, as described in Section 3 below (the “Construction Pricing Proposal”), ) of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Construction Architectural Plans (taking into consideration, also, the reasonable estimate of the cost of any Tenant Improvement Work which shall be shown on the Engineering Drawings. The Construction Pricing Proposal shall include a commercially reasonable contingency amount consistent with a guaranteed maximum price (“GMAX”) construction contract, defined below). Tenant shall provide Landlord with notice approving or disapproving the Construction Pricing Proposal. If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Construction Drawings Architectural Plans that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.5 2.7 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant. Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence construction relating to such items. 2.6.2 If the Construction Pricing Proposal exceeds the Allowance, then, concurrently with its delivery to Landlord of approval of the Construction Pricing Proposal, Tenant shall deliver to Landlord cash in the amount of such excess (the “Over-Allowance Amount”). Any Over-Allowance Amount shall be disbursed by Landlord after the Allowance and pursuant to the same procedure as the Allowance. After the Construction Pricing Proposal is approved by Tenant, if any revision is made to the Approved Architectural Plans, the Approved Engineering Drawings (defined below), the Approved Construction Drawings (defined below) or the Tenant Improvement Work that increases the Construction Pricing Proposal, or if the Construction Pricing Proposal is otherwise increased to reflect the actual cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the terms hereof, then Tenant shall deliver any resulting Over-Allowance Amount (or any resulting increase in the Over-Allowance Amount) to Landlord immediately upon Landlord’s request.