Common use of Adjustment to Development Fee Clause in Contracts

Adjustment to Development Fee. Prior to the final payment described in paragraph 1, a determination shall be made as to whether the Development Fee should be reduced, as follows: (a) If the Controllable Construction Costs actually incurred to complete the project exceed the Controllable Construction Costs set forth in the final Development Budget for the project plus the Budget Adjustments, then the Development Fee shall be reduced by the lesser of (i) the amount by which incurred Controllable Construction Costs exceed the Controllable Construction Costs set forth in the Development Budget, or (ii) one percent (1%) of the incurred Controllable Construction Costs; and (b) If the date of Completion is more than sixty (60) days after the date of Completion projected in the Project Schedule (as adjusted for Force Majeure) and delays resulting from Tenant delay, then the Development Fee shall be reduced in the following manner: (A) if the date of Completion occurs more than thirty (30) days after the projected date of Completion but not later than forty five (45) days after the projected Date of Completion, then the Development Fee shall be reduced by .125% of Controllable Construction Costs; (B) if the date of Completion occurs more than forty five (45) days after the projected date of Completion but not later than sixty (60) days after the projected Date of Completion, then the Development Fee shall be reduced by .25% of Controllable Construction Costs; (C) if the date of Completion occurs more than sixty (60) days after the projected date of Completion but not later than seventy five (75) days after the projected Date of Completion, then the Development Fee shall be reduced by ..375% of Controllable Construction Costs; and (D) if the date of Completion occurs more than seventy five (75) days after the projected Date of Completion, then the Development Fee shall be reduced by .5% of Controllable Construction Costs. (c) Notwithstanding the foregoing provisions of this paragraph 3, in no event shall the aggregate decrease in the Development Fee pursuant to subparagraph 3(a) and (b) above exceed one percent (1%) of Controllable Construction Costs.

Adjustment to Development Fee. Prior to Upon the final payment described in paragraph 1date of Completion, a determination shall be made as to whether the Development Fee should be reduced, as follows: (a) If the Controllable Construction Costs actually incurred costs to complete the project Project exceed the Controllable Construction Costs costs set forth in the final Final Development Budget for the project plus the Budget AdjustmentsBudget, then the Development Fee shall be reduced by the lesser of (i) the amount by which incurred Controllable Construction Costs costs exceed the Controllable Construction Costs costs set forth in the Final Development Budget, or (ii) one twenty-five percent (125%) of the incurred Controllable Construction Costsbudgeted Development Fee; and (b) If the actual date of Completion is more than sixty (60) days after extends beyond the date of Completion as projected in the Final Project Schedule (as adjusted for excluding delays caused by Force Majeure) and Majeure Events, delays resulting from Tenant delaychange orders approved or deemed approved by Owner, or delays resulting from arbitration proceedings pursuant to Section 7.22), then the Development Fee shall be reduced in the following manneras follows: (Ai) if the actual date of Completion occurs exceeds the projected Completion date by more than thirty sixty (3060) days after the projected date of Completion but not later than forty five (45) days after the projected Date of Completiondays, then the Development Fee shall be reduced by .125% five percent (5%) of Controllable Construction Coststhe budgeted Development Fee; (Bii) if the actual date of Completion occurs exceeds the projected Completion date by more than forty five ninety (4590) days after the projected date of Completion but not later than sixty (60) days after the projected Date of Completiondays, then the Development Fee shall be reduced by .25% fifteen percent (15%) of Controllable Construction Coststhe budgeted Development Fee; and (Ciii) if the actual date of Completion occurs exceeds the projected Completion date by more than sixty one hundred twenty (60120) days after the projected date of Completion but not later than seventy five (75) days after the projected Date of Completiondays, then the Development Fee shall be reduced by ..375% twenty-five percent (25%) of Controllable Construction Costs; and (D) if the date of Completion occurs more than seventy five (75) days after the projected Date of Completion, then the budgeted Development Fee shall be reduced by .5% of Controllable Construction CostsFee. (c) Notwithstanding the foregoing provisions of this paragraph 3Section 2.2, in no event shall the aggregate decrease in the Development Fee pursuant to subparagraph 3(aSections 2.2(a) and (b2.2(b) above exceed one twenty-five percent (125%) of Controllable Construction Coststhe budgeted Development Fee. (d) Owner shall disburse the Development Fee, as same may be reduced pursuant to this Section 2.2 or withheld pursuant to Section 2.3 below, within twenty (20) business days after Completion, and any amount of the Development Fee withheld pursuant to Section 2.3 below shall be disbursed to Developer within ten (10) business days after receipt by Owner of all Completion Documentation.

Adjustment to Development Fee. Prior to Upon the final payment described in paragraph 1date of Completion, a determination shall be made as to whether the Development Fee should be reduced, as follows: (a) If the Controllable Construction Costs actually incurred costs to complete the project Project exceed the Controllable Construction Costs costs set forth in the final Final Development Budget for the project plus the Budget AdjustmentsBudget, then the Development Fee shall be reduced by the lesser of (i) the amount by which incurred Controllable Construction Costs costs exceed the Controllable Construction Costs costs set forth in the Final Development Budget, or (ii) one twenty-five percent (125%) of the incurred Controllable Construction Costs; andbudgeted Development Fee. (b) If the actual date of Completion is more than sixty (60) days after extends beyond the date of Completion as projected in the Final Project Schedule (as adjusted for excluding delays caused by Force Majeure) and Majeure Events, delays resulting from Tenant delaychange orders approved or deemed approved by Owner, or delays resulting from arbitration proceedings pursuant to Section 7.22), then the Development Fee shall be reduced in the following manneras follows: (Ai) if the actual date of Completion occurs exceeds the projected Completion date by more than thirty sixty (3060) days after the projected date of Completion but not later than forty five (45) days after the projected Date of Completiondays, then the Development Fee shall be reduced by .125% five percent (5%) of Controllable Construction Coststhe budgeted Development Fee; (Bii) if the actual date of Completion occurs exceeds the projected Completion date by more than forty five ninety (4590) days after the projected date of Completion but not later than sixty (60) days after the projected Date of Completiondays, then the Development Fee shall be reduced by .25% fifteen percent (15%) of Controllable Construction Coststhe budgeted Development Fee; and (Ciii) if the actual date of Completion occurs exceeds the projected Completion date by more than sixty one hundred twenty (60120) days after the projected date of Completion but not later than seventy five (75) days after the projected Date of Completiondays, then the Development Fee shall be reduced by ..375% twenty-five percent (25%) of Controllable Construction Costs; and (D) if the date of Completion occurs more than seventy five (75) days after the projected Date of Completion, then the budgeted Development Fee shall be reduced by .5% of Controllable Construction CostsFee. (c) Notwithstanding the foregoing provisions of this paragraph 3Section 2.2, in no event shall the aggregate decrease in the Development Fee pursuant to subparagraph 3(aSections 2.2(a) and (b2.2(b) above exceed one twenty-five percent (125%) of Controllable Construction Coststhe budgeted Development Fee. (d) Owner shall disburse the Development Fee, as same may be reduced pursuant to this Section 2.2 or withheld pursuant to Section 2.3 below, within twenty (20) business days after Completion, and any amount of the Development Fee withheld pursuant to Section 2.3 below shall be disbursed to Developer within ten (10) business days after receipt by Owner of all Completion Documentation.