Construction Pricing Clause Samples
The Construction Pricing clause defines how the costs for a construction project are determined and agreed upon between the parties. It typically outlines whether the pricing is fixed, cost-plus, or based on unit rates, and may specify what is included or excluded from the contract price, such as materials, labor, and contingencies. By clearly establishing the method and scope of pricing, this clause helps prevent disputes over payment and ensures both parties have a shared understanding of financial obligations throughout the project.
Construction Pricing. Within 10 business days after the Approved Construction Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate (for purposes of this Exhibit A, the “Construction Pricing Proposal”) of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Construction Drawings. Tenant shall provide Landlord with notice approving or disapproving the Construction Pricing Proposal. If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Construction Drawings that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.7 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant. Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence construction relating to such items.
Construction Pricing. Within 10 business days after the Construction Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate based on a bid from the Contractor, as described in Section 3 below (the “Construction Pricing Proposal”), of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Construction Drawings. The Construction Pricing Proposal shall include a commercially reasonable contingency amount consistent with a guaranteed maximum price (“GMAX”) construction contract. Tenant shall provide Landlord with notice approving or disapproving the Construction Pricing Proposal. If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Construction Drawings that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.5 below. Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant. Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and commence construction relating to such items.
Construction Pricing. (a) In the event that a Construction Contract is entered into between TGC and Developer, Developer shall prepare cost estimates and bids for the construction of the Project in accordance with the Project Plans. Within fifteen (15) days following submittal of the final version thereof to Developer, Developer shall submit the completed Construction Contract for the Project, the cost of which shall not exceed Seven Million Eight Hundred Thirty-Three Thousand Seven Hundred Twenty-Four Dollars ($7,833,724) based upon the Proposal. Such Construction Contract shall specify that the Project shall be completed no later than December 1, 1997; and that TGC shall have access to the Project for installation of equipment, supplies and other improvements no later than September 1, 1997. The contract price maximum referenced above shall be exclusive of governmental fees and costs of the Offsite Improvements, but shall include all development services to be provided by Developer, most particularly including, without limitation, all services required to process approval of the Project through all governmental agencies from whom Land Entitlement Permits may be required, including the City of Dixo▇, ▇▇e County of Sola▇▇ ▇▇▇ relevant state agencies.
Construction Pricing. (a) The Approved Budget and Project Cost may be changed only with the prior written approval of Lessee.
(b) Not later than ten (10) Business Days after approval of the Construction Documents by Lessee, Lessor shall deliver to Lessee the General Contractor’s proposed GMP, itemized by category, which shall not exceed the Schedule of Values submitted by the General Contractor as shown on Schedule 3.
(c) If the proposed GMP indicate that Project Costs will exceed the Approved Budget, Lessor shall cause the General Contractor to advise Lessor and Lessee within the Response Time as to adjustments, if any, which could be made to the reduce costs to or below the Approved Budget. Thereafter, Lessee shall determine within the Response Time whether and how to adjust the Construction Drawings.
Construction Pricing. When submitting a proposal, provide a cost breakdown for each task into the following categories: Materials, equipment, labor hours, subcontractor's quotes, overhead, profit, and bond broken down into shell, tenant improvement (TI) (by tenant), Building- Specific Amortized Capital (BSAC), and environmental (as applicable). Follow P120 guidelines for tier level 3 based on project triage tool. Pricing shall be broken down by Construction Specification Institute (CSI) divisions.
Construction Pricing