Common use of Construction Contract/Schedule/Reports Clause in Contracts

Construction Contract/Schedule/Reports. Tenant’s general contractor and its proposed construction contract(s) for the Improvements shall be subject to the prior review and approval of Landlord, such approval not to be unreasonably withheld, conditioned or delayed. The construction contract shall contain such terms and conditions as shall be mutually satisfactory to Tenant and the general contractor or construction manager, but shall include the following: (i) where reasonably possible and cost effective under the circumstances, a lump sum or guaranteed maximum price for the development, construction, equipping and completion of the Improvements (or the relevant portion thereof governed by such construction contract) so as to minimize the Tenant’s risk of cost overruns; (ii) a guaranty of substantial completion not later than a scheduled completion date reasonably acceptable to Landlord; (iii) a provision for a payment and performance bond in the full amount of the price for the work covered thereby in a form reasonably acceptable to Landlord, with Tenant, Landlord and, if required, Tenant’s lender being named as primary insureds and beneficiaries on all such bonds; (iv) a provision for liquidated damages in the event of a delay in substantial completion beyond the scheduled completion date, in an amount and on terms reasonably acceptable to Landlord and Tenant; (v) appropriate retention amounts; (vi) a provision for the receipt of lien waivers and releases from all construction contractors and their subcontractors; (vii) a requirement that, subject to industry standard, each construction contractor certify in writing that no materials used in the work contain lead, asbestos materials or other Hazardous Materials in excess of amounts allowed by applicable law, including any Environmental Laws; (viii) a requirement that each construction contractor comply with all applicable laws, including Environmental Laws; (ix) a requirement that the construction contractor maintain the insurance required by Section 10.1(a), Section 10.1(c) and Section 10.1(d) hereof, with Landlord named as an additional insured as its interest may appear if appropriate; and (x) a requirement that all construction work shall comply with the Approved Plans. As part of the construction contract, Tenant and its general contractor shall develop a schedule (the “Schedule”) with appropriate milestones providing for substantial completion of the Improvements by the approved scheduled completion date. The Schedule shall include time for adverse weather conditions to the extent normally encountered in the Chapel Hill, North Carolina area and the impact thereof, delineate all phases of the pre-construction work and the construction work and set forth a projected date for completion of each phase in sufficient detail to allow Landlord to monitor progress of the construction. The Schedule shall indicate the projected dates for the starting and completion of the various stages of design and construction and shall be revised as required by the progress and condition of the work. Upon Landlord’s request (which requests may not be made frequently than monthly), Tenant shall provide written reports to Landlord on a regular basis. Such written reports shall describe the status of the design and construction of the Improvements, any revisions to the Schedule, the estimated percentage of completion, and will include copies of (i) any reports Tenant has received from its architect or general contractor since the date of the last progress report delivered to Landlord; (ii) the most recent certification from the architect, if such a certification is available; and (iii) such other relevant information as Landlord shall reasonably request.

Construction Contract/Schedule/Reports. Tenant’s general contractor and its proposed construction contract(s) for the Improvements shall be subject to the prior review and approval of Landlord, such approval not to be unreasonably withheld, conditioned or delayed. The construction contract shall contain such terms and conditions as shall be mutually satisfactory to Tenant and the general contractor or construction manager, but shall include the following: (i) where reasonably possible and cost effective under the circumstances, a lump sum or guaranteed maximum price for the development, construction, equipping and completion of the Improvements (or the relevant portion thereof governed by such construction contract) so as to minimize the Tenant’s risk of cost overruns; (ii) a guaranty of substantial completion not later than a scheduled completion date reasonably acceptable to Landlord; (iii) a provision for a payment and performance bond in the full amount of the price for the work covered thereby in a form reasonably acceptable to Landlord, with Tenant, Landlord and, if required, TenantXxxxxx’s lender being named as primary insureds and beneficiaries on all such bonds; (iv) a provision for liquidated damages in the event of a delay in substantial completion beyond the scheduled completion date, in an amount and on terms reasonably acceptable to Landlord and Tenant; (v) appropriate retention amounts; (vi) a provision for the receipt of lien waivers and releases from all construction contractors and their subcontractors; (vii) a requirement that, subject to industry standard, each construction contractor certify in writing that no materials used in the work contain lead, asbestos materials or other Hazardous Materials in excess of amounts allowed by applicable law, including any Environmental Laws; (viii) a requirement that each construction contractor comply with all applicable laws, including Environmental Laws; (ix) a requirement that the construction contractor maintain the insurance required by Section 10.1(a), Section 10.1(c) and Section 10.1(d) hereof, with Landlord named as an additional insured as its interest may appear if appropriate; and (x) a requirement that all construction work shall comply with the Approved Plans. As part of the construction contract, Tenant and its general contractor shall develop a schedule (the “Schedule”) with appropriate milestones providing for substantial completion of the Improvements by the approved scheduled completion date. The Schedule shall include time for adverse weather conditions to the extent normally encountered in the Chapel Hill, North Carolina area and the impact thereof, delineate all phases of the pre-construction work and the construction work and set forth a projected date for completion of each phase in sufficient detail to allow Landlord to monitor progress of the construction. The Schedule shall indicate the projected dates for the starting and completion of the various stages of design and construction and shall be revised as required by the progress and condition of the work. Upon Landlord’s request (which requests may not be made frequently than monthly), Tenant shall provide written reports to Landlord on a regular basis. Such written reports shall describe the status of the design and construction of the Improvements, any revisions to the Schedule, the estimated percentage of completion, and will include copies of (i) any reports Tenant has received from its architect or general contractor since the date of the last progress report delivered to Landlord; (ii) the most recent certification from the architect, if such a certification is available; and (iii) such other relevant information as Landlord shall reasonably request.

Construction Contract/Schedule/Reports. Tenant’s general contractor and its proposed construction contract(s) for the Improvements shall be subject to the prior review and approval of Landlord, such approval not to be unreasonably withheld, conditioned or delayed. The construction contract shall contain such terms and conditions as shall be mutually satisfactory to Tenant and the general contractor or construction manager, but shall include the following: (i) where reasonably possible and cost effective under the circumstances, a lump sum or guaranteed maximum price for the development, construction, equipping and completion of the Improvements (or the relevant portion thereof governed by such construction contract) so as to minimize the Tenant’s risk of cost overruns; (ii) a guaranty of substantial completion not later than a scheduled completion date reasonably acceptable to Landlord; (iii) a provision for a payment and performance bond in the full amount of the price for the work covered thereby in a form reasonably acceptable to Landlord, with Tenant, Landlord and, if required, Tenant’s lender being named as primary insureds and beneficiaries on all such bonds; (iv) a provision for liquidated damages in the event of a delay in substantial completion beyond the scheduled completion date, in an amount and on terms reasonably acceptable to Landlord and Tenant; (v) appropriate retention amounts; (vi) a provision for the receipt of lien waivers and releases from all construction contractors and their subcontractors; (vii) a requirement that, subject to industry standard, each construction contractor certify in writing that no materials used in the work contain lead, asbestos materials or other Hazardous Materials in excess of amounts allowed by applicable law, including any Environmental Laws; (viii) a requirement that each construction contractor comply with all applicable laws, including Environmental Laws; (ix) a requirement that the construction contractor maintain the insurance required by Section 10.1(a), Section 10.1(c) and Section 10.1(d) hereof, with Landlord named as an additional insured as its interest may appear if appropriate; and (x) a requirement that all construction work shall comply with the Approved Plans. [OPEN FOR FURTHER DISCUSSION] As part of the construction contract, Tenant and its general contractor shall develop a schedule (the “Schedule”) with appropriate milestones providing for substantial completion of the Improvements by the approved scheduled completion date. The Schedule shall include time for adverse weather conditions to the extent normally encountered in the Chapel Hill, North Carolina area and the impact thereof, delineate all phases of the pre-construction work and the construction work and set forth a projected date for completion of each phase in sufficient detail to allow Landlord to monitor progress of the construction. The Schedule shall indicate the projected dates for the starting and completion of the various stages of design and construction and shall be revised as required by the progress and condition of the work. Upon Landlord’s request (which requests may not be made frequently than monthly), Tenant shall provide written reports to Landlord on a regular basis. Such written reports shall describe the status of the design and construction of the Improvements, any revisions to the Schedule, the estimated percentage of completion, and will include copies of (i) any reports Tenant tenant has received from its architect or general contractor since the date of the last progress report delivered to Landlord; (ii) the most recent certification from the architect, if such a certification is available; and (iii) such other relevant information as Landlord shall reasonably request.. [OPEN FOR FURTHER DISCUSSION]