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Understanding the Issues in Leasing Office Space for or to Federal Governmental Entities

By Elizabeth L. Cooper
April 28, 2006

Part One of this article discussed lease forms and standard clauses; federal appropriation of funds; rental payments; and lease language that provides for the award of attorneys' fees to the 'prevailing party' in a law-suit. The conclusion addresses alterations and dispute resolution.

Alterations

In today's environment, most federal agencies do not have the in-house staff to complete alterations. Most often the government prefers the landlord to complete alterations particularly if costs/price of the landlord completing the same are priced competitively. However, some government entities require that their own contractors perform alterations because security/communications work is required to be performed by security-cleared personnel, and more agencies may have to deal with these same issues in the future. In such an instance, the lease must provide the government with greater latitude on performing these alterations. For example, the government may not want to be obligated to obtain a building permit or to be subject to the landlord's requirements and/or local building codes. Often governmental agencies have their own in-house procedures and systems of checks and balances on construction that are more elaborate and time consuming than a typical corporation.

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