Common use of Cost of the Tenant Improvements Clause in Contracts

Cost of the Tenant Improvements. The cost of the Tenant Improvements shall include all out of pocket costs associated with the design, permitting and construction of the Tenant Improvements, including, without limitation, building permit fees, payments to Architect and any other engineering or design consultants for services, premiums for insurance and bonds, permit costs, inspection fees, labor and materials, and sales tax (“collectively, the “Tenant Improvement Costs”). Prior to commencing work on the Tenant Improvements, Landlord and Tenant, both acting reasonably, shall prepare an agreed estimate of the Tenant Improvement Costs. If the Tenant Improvement Costs are reasonably anticipated to exceed the Allowance, Landlord may withhold authorization for work to proceed until Tenant has furnished Landlord with reasonable evidence that Tenant has made suitable provision to pay all of the Tenant Improvements Costs in excess of the Allowance and to discharge any liens that may arise therefrom.