Cost and Allowance Sample Clauses
The Cost and Allowance clause defines how costs are estimated, allocated, and managed within a contract. It typically outlines which expenses are included in the contract price, how allowances for certain items or services are set, and the process for adjusting these amounts if actual costs differ from estimates. For example, it may specify that certain materials or work are covered by a fixed allowance, with any overages or savings reconciled at project completion. This clause ensures transparency and fairness in handling project costs, helping both parties manage budget expectations and avoid disputes over unforeseen expenses.
Cost and Allowance. 2.1 Landlord shall submit to Tenant for Tenant’s approval a written estimate of the cost of Landlord’s Work (an “Estimate”). After obtaining the Estimate, Landlord and Tenant thereafter shall diligently consult to make such modifications to Landlord’s Work as Tenant determines are necessary to reduce the cost of Landlord’s Work. Within fifteen (15) business days after obtaining the Estimate, Landlord will obtain from the selected contractor final pricing for the Landlord’s Work (the “Final Pricing”) for Tenant’s approval. The Final Pricing shall be based on construction drawings prepared by Tenant’s architect, plus any further modifications requested by Tenant prior to Tenant’s approval of the Final Pricing. The Final Pricing shall not be modified except by a change order approved by Landlord and Tenant.
2.2 Within five (5) business days after Tenant’s approval of the Final Pricing, Landlord may require Tenant to deposit that amount of the amount of the Final Pricing which exceeds the Maximum TI Allowance (the “Tenant Deposit”). The Tenant Deposit shall be held by Landlord in escrow in a separate account as security for the payment of, and shall be credited, without interest, against the sums payable by Tenant under this Lease. Except for demolition work, which Landlord will diligently pursue upon complete execution of this Lease, Landlord shall not be required to commence its other work until the Tenant Deposit is received.
2.3 This Amendment and the rental rates provided for herein are premised on a total cost of Landlord’s Work not to exceed $857,307.00 (the “Maximum TI Allowance”, which consists of $314,867 attributable towards the Existing Premises and $542,440 attributable towards the First Expansion Premises), which may be allocated in its entirety to either the Existing Premises or the First Expansion Premises. The Maximum TI Allowance may be used any time prior to December 2013. The “cost of Landlord’s Work” includes, without limitation:
2.3.1 All costs and expenses actually incurred by Landlord pertaining to Landlord’s Work, including, but not limited to, costs charged by contractors, subcontractors and general and other conditions costs and expenses in connection with completing Landlord’s Work and otherwise preparing the Premises for occupancy;
2.3.2 All costs and expenses, including preparation of the plans as needed, for such construction, and site inspection and contract administration by consulting architects and/or engineers;
2.3.3 All cos...
Cost and Allowance. (a) This Lease and the rental rates provided for herein are premises on a total cost of Landlord's Work not to exceed $212,850.00 ($10.00 per RSF) (the "Maximum TI Allowance"). The "cost of Landlord's Work" includes, without limitation:
Cost and Allowance. 2.1.1 Irrespective of whether Landlord or Tenant is to perform the Work, Landlord will cause design plans and specifications, the costs of which shall be deducted from the Maximum TI Allowance as hereinafter defined, to be promptly prepared for Tenant’s review and approval provided Landlord has received from Tenant sufficient input as to design criteria. Prior to commencing any of Landlord’s Work, Landlord shall submit to Tenant for Tenant’s approval a written estimate of the cost of Landlord’s Work (an “Estimate”). Landlord shall require Tenant to acknowledge its approval of the plans and the Estimate within five (5) business days after Landlord’s written request therefor. The amount, if any, by which the Estimate exceeds the Maximum TI Allowance is referred to as the “Excess Cost.” Landlord shall not be required to commence its work until such acknowledgment is received.
2.1.2 As noted above, the entire amount of the Excess Cost is the sole responsibility of Tenant. The Excess Cost shall be paid to Landlord by Tenant within thirty (30) days after Landlord’s Work is substantially complete, as additional rent under the Lease.
Cost and Allowance. 2.1 Prior to commencing any of Landlord’s Work, Landlord shall submit to Tenant for Tenant’s approval a written estimate of the cost of Landlord’s Work (an “Estimate”). Landlord shall not be required to commence its work until Tenant has acknowledged its approval of the Estimate.
2.2 This Lease and the rental rates provided for herein are premised on a total cost of Landlord’s Work not to exceed $129,320 ($20 per rsf, the “Maximum TI Allowance”). The “cost of Landlord’s Work” includes, without limitation:
2.2.1 All costs and expenses actually incurred by Landlord pertaining to Landlord’s Work, including, but not limited to, costs charged by contractors and subcontractors, and general conditions costs and other costs and expenses in connection with preparation of the Premises for occupancy;
2.2.2 All costs and expenses of preparation of the plans for such construction, and site inspection and contract administration by Landlord’s consulting architects and/or engineers;
2.2.3 All costs of permits, licenses and other approvals required for the performance of Landlord’s Work; and
2.2.4 A construction management fee to Landlord of three percent (3%) of the total of all such costs under the foregoing Sections 2.2.1, 2.2.2 and 2.2.3.
2.3 If the total cost of Landlord’s Work exceeds the Maximum TI Allowance, then Tenant shall reimburse Landlord for such excess cost upon demand as additional rent hereunder.