Construction Reimbursement Clause Samples
A construction reimbursement clause outlines the terms under which one party will repay another for costs incurred during a construction project. Typically, this clause specifies which expenses are eligible for reimbursement, the documentation required to support reimbursement requests, and the timeline for payment. For example, it may cover materials, labor, or permit fees, provided the party seeking reimbursement submits detailed invoices and receipts. The core function of this clause is to ensure that parties are fairly compensated for out-of-pocket construction expenses, thereby reducing financial disputes and clarifying cost responsibilities.
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Construction Reimbursement. Purchaser shall reimburse Seller for all reasonable and necessary construction costs (up to $200,000.00) actually incurred by Seller prior to the Closing relating to the conversion (the “Conversion”) of two delivery bays at the Leased Real Property into flowering rooms (the amount of such reimbursement, the “Construction Reimbursement Amount”). The Construction Reimbursement Amount shall be incorporated into and in addition to the Closing Cash Payment pursuant to Section 2.2(b). No later than one (1) day prior to the Closing, Seller shall deliver to Purchaser a final calculation of the Construction Reimbursement Amount, along with copies of all documents and invoices reasonably requested by Purchaser to support Seller’s calculation thereof. During the time between the execution of this Agreement and the Closing, Seller shall use commercially reasonable efforts to complete the Conversion and such construction shall be performed in a professional, safe and workmanlike manner, free from any defects, and Seller shall keep Purchaser reasonably informed with respect to the status of the Conversion and all costs relating thereto, provided, however, that the Conversion may not be a completed prior to the Closing, in which event, Seller will not be liable for any work performed by Purchaser (such as inspection and permitting of the Conversion) taking place after the Closing.
Construction Reimbursement. The Parties recognize that prior to the PSH Formation Date, Penske Corp. and its Affiliates will have loaned or advanced certain amounts with respect to the development and construction of the Raceway. Penske Corp. shall be permitted to reimburse itself and its Affiliates from construction loan proceeds or additional equity investments, for any reasonable and verifiable amounts loaned or advanced with respect to the development and construction of the Raceway which are not treated as PSH capital contributions under the terms of Section 4.3 above. Attached as Schedule 6.5 hereto is a list of all such items to date with respect to which Penske Corp. or its Affiliates are entitled to seek reimbursement under the terms of this Section 6.4. A copy of Schedule 6.5 updated through the PSH Formation Date shall be delivered to ISC on the PSH Formation Date.
Construction Reimbursement. Agreement shall mean that ------------------------------------ certain Construction Reimbursement Agreement to be entered into between Buyer, WGV and others allocating certain construction reimbursements to be paid to WGV for certain WGV Easement improvements.
Construction Reimbursement. Artesian will reimburse Developer for the construction of phase 1 of the Treatment Facility through customer connection fees. The connection fee will be split 40% to Artesian and 60% to developer until the Developer’s investment in the design, treatment, storage and disposal facilities are reimbursed. Artesian shall calculate the portion of connection fees accruing to the benefit of the Developer by the 15th calendar day following the end of the month. That amount, and no more, shall be remitted to the lender charged with administering the debt associated with the construction of Phase 1 of the Treatment Facility until the debt and interest associated with the debt has been fully repaid.