Cost Approval Clause Samples
The Cost Approval clause establishes a requirement that certain expenses or costs must receive prior authorization before being incurred. Typically, this clause outlines which types of costs need approval, who has the authority to grant such approval, and the process for submitting requests, such as written notice or budget proposals. Its core practical function is to control spending and prevent unauthorized or unexpected financial commitments, thereby ensuring budgetary discipline and reducing the risk of disputes over unapproved expenditures.
Cost Approval. Lessee shall pay the excess of the Tenant Improvement Costs over the amount of the Tenant Improvement Allowance available to defray such costs. Concurrent with the plan checking referred to in Paragraph (b) of this Paragraph 56, Lessor shall prepare and submit to Lessee a written estimate of the amount of the remaining Tenant Improvement Costs and the cost of the Tenant Improvement Allowance still available to defray such costs 12 Initials /s/ JS -- /s/ MA -- (after preparation of the Preliminary Plans and Working Drawings). Lessee shall approve or disapprove any such estimate by written notice to Lessor within three (3) days after receipt thereof. If Lessee fails to notify Lessor of its disapproval within such three (3) day period, Lessee shall be deemed to have approved such estimate. If Lessee approves such estimate, Lessee's notice of approval shall include payment to Lessor for an amount equal to Fifty Thousand Dollars ($50,000.00). If Lessee disapproves such estimate within the three (3) day period, Lessee shall be required to direct Lessor and the Architect to amend the Working Drawings in a manner satisfactory to Lessor so as to reduce the estimated costs to an amount acceptable to Lessee, and any excess estimated costs remaining after such amendment shall be paid by Lessee in the manner described in the preceding sentence. Lessee shall additionally pay any costs resulting from such amendment and Lessee shall be liable for the delay in completing the Tenant Improvements and the increased costs, if any, resulting from such delay. If Lessee is unwilling or unable to amend the Working Drawings in a manner acceptable to Lessor, then Lessee shall be deemed to have approved of the estimate for the Working Drawings as prepared, Lessee shall pay the Fifty Thousand Dollars ($50,000.00) to Lessor, and shall pay in full the amount of any excess estimated costs together with any costs arising from delay as a result of Lessee's actions hereunder, in the manner hereinabove provided.
Cost Approval. Tenant shall pay the excess of the Tenant Improvement Costs over the amount of the Tenant Improvement Allowance available to defray such costs. Concurrent with the plan checking referred to in Section 3 of this Work Letter, Landlord shall prepare and submit to Tenant a written estimate of the amount of the remaining Tenant Improvement Costs and the Cost of the Tenant Improvement Allowance still available to defray such costs (after preparation of the Preliminary Plans and Working Drawings). Tenant shall