Lease and Construction Agreement Consulting
Your Lease or Construction Agreement is Where We Start to Level the Playing Field and Protect Your Interests
Project risks and costs are either reduced or increased depending on the terms defined in the lease or construction agreement. Whether your agreement is for a lease that includes Tenant Improvement (TI) construction or is for an owner constructing a build-to-suit facility project, P2M’s lease and construction agreement consulting services will protect your interests.
With experience in design and construction, P2M knows what construction agreement language to accept, reject and modify. Construction industry agreements may be good starting points but they are written to protect the interests of the industry they serve, e.g., construction or architectural. We are experienced in modifying standard industry agreements written by the American Institute of Architects (AIA), Associated General Contractors of America (AGC) “ConsensusDocs” and other industry agreements to better protect your interests.
Tenant Lease Agreements:
Tenants have a different set of construction related issues in lease agreements. P2M is experienced in how to interpret the specifications, allowances and scope of work described by a landlord or contractor and can identify the risks in their proposed language. This is critical to your ability to negotiate change orders and control costs.
Risk areas in your lease agreement may include issues such as these:
- Defining the scope and quality of construction provided under base building and tenant improvements (TI) costs;
- Evaluation of developer “Outline Specifications” and preliminary plans
- Adequacy of allowances in lease for construction scope;
- What triggers a “tenant caused delay”;
- Change order “markup” percentage during design and construction;
- Tenant’s rights to evaluate change order costs;
- Lease commencement triggers.
Corporate legal counsel reviews are encouraged and we often work closely with our clients’ attorney, but P2M brings a level of real world experience to the Agreement reviews that is valued by both the client and its legal counsel.