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For the purposes of this Lease general operating and maintenance costs means all costs, charges, and expenses chargeable against income and incurred, approved, or attributed by the Lessor to operate, service, maintain, clean, supervise, police, replace and repair, and keep in good order and safe condition the lands and the building of which the demised premises form a part and structures or improvements thereon, including, without limiting the generality of the foregoing: - The cost of gas, oil, power, water, sewer, communications and all other utilities and services, together with the direct cost of administering such utility services; provided that non exclusive utility costs may at the discretion of the Lessor in cases where, in the opinion of the Lessor, the consumption of utility is heavier in one or more rentable premises by reason of the business carried on in such premises, be allocated on a user basis; - The cost of servicing and maintaining all heating, air conditioning, 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labour, wages (including statutory or usual fringe benefits) and fees of independent contractors relating thereto; - The cost of operating and replacing a public address system, background music, information kiosk, directory boards, and the net cost of operating and the cost of replacing public telephones and information facilities; - The cost of operating and maintaining the Building identification sign(s) and general building signage excluding only the signs paid for directly by the Lessee; - The cost of interest on the capital cost of all cleaning and maintenance equipment owned by the Lessor calculated at rates charged from time to time to borrowers regarded as prime credit risks, together with the cost of depreciation on such equipment; - The direct cost of management, administration and book-keeping services at Five (5%) per cent of the total of the basic rent charged pursuant to paragraph 4 and the additional rent payable to the Lessor pursuant to paragraphs 7 to 12 hereof.", 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explicitly included or excluded to avoid disputes?", "How can parties cap or allocate unexpected increases in operating and maintenance costs?", "What audit or information rights are essential for verifying cost calculations?", "How do courts interpret ambiguous cost allocation language in similar contracts?", "What negotiation leverage exists around pass-through versus fixed cost structures?"], "drafting_tip": "Specify covered costs, allocate payment responsibilities, and set reimbursement procedures to prevent disputes and ensure financial clarity.", "explanation": "The Operating and Maintenance Costs clause defines the responsibilities and procedures for covering expenses related to the ongoing operation and upkeep of a property, facility, or equipment. It typically outlines which party is responsible for routine maintenance, repairs, utilities, and other recurring costs, and may specify how these costs are calculated or reimbursed. By clearly allocating financial responsibility, this clause helps prevent disputes and ensures that the asset remains in good working condition throughout the agreement."}, "json": true, "cursor": ""}}