Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Work Letter 'What Ifs'
Editor's Note: Landlords and tenants enter into agreements, known as “Work Letters,” delineating their respective rights and obligations with regard to tenant and landlord improvements. As with any other portion of the lease, complications can develop, so addressing potential Work Letter issues within the contract can pay dividends down the road. To illustrate some of the circumstances that may arise, and how one might deal with them at negotiation, the author has proposed six “what-if” scenarios, the first two of which were discussed in Part One of this article. She continues herein with Scenario number three.
3. What if Tenant Improvement Pricing Exceeds the Tenant's Expectations?
If the tenant is responsible for paying all or any portion of the tenant improvement costs, it will want as much control over those costs as possible. The tenant will want to ensure that:
- the work is bid to multiple contractors and/or subcontractors for pricing;
- the construction plans and documents that are used by the contractors and subcontractors to determine pricing are as detailed as possible to ensure that the bids will be as accurate as possible;
- if the landlord is responsible for the tenant improvements, the tenant has the right to approve the contractor and also the construction contract (or, at a minimum, the type of contract, such as cost-plus-fixed-percentage or cost-plus-guaranteed-maximum-price); and
- it has approved the construction budget (and attached a copy to the lease, if available prior to lease execution).
Once the architectural and engineering drawings and other construction documents are prepared, the tenant will want the right to approve the construction documents before they are submitted to the applicable governmental authority for approval. In addition, if the applicable governmental authority requires changes to the construction documents in order to issue approvals and permits for the work, and the changes would increase the cost of the tenant improvements, the tenant will want the ability to request revised pricing and/or “value-engineer” the design of the tenant improvements to reduce costs or otherwise keep costs in line with the approved budget.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?