Common use of Cost Quotation Clause in Contracts

Cost Quotation. Promptly after Landlord’s approval of the Construction Drawings and Specifications, Tenant will provide to Landlord a computation, along with reasonable supporting documentation, setting forth Tenant’s estimate of the Total Costs relating to Tenant’s Improvements (“Cost Quotation”) based upon the approved Construction Drawings and Specifications. If the Cost Quotation exceeds the Improvement Allowance, Tenant will be responsible for paying the cost by which the Cost Quotation exceeds the Improvement Allowance (“Excess Costs”) (or Tenant shall revise the Construction Drawings and Specifications (subject to Landlord’s approval as set forth above), so that the Cost Quotation is either (i) no more than the Improvement Allowance, or (ii) in excess of the Improvement Allowance by an amount of Excess Costs that Tenant agrees in writing to pay). The failure of Tenant so to respond within the five-Business Day period will be deemed to be Tenant’s agreement to pay all of the Excess Costs. In the event that the Excess Costs are greater than $250,000, Landlord shall have the right to require, as a condition precedent to Tenant’s proceeding with the construction of Tenant’s Improvements, either (at Tenant’s election): (i) reasonable financial information to establish that Tenant has a reasonably sufficient net worth and credit to pay for the completion of Tenant’s Improvements, or (ii) payment and performance bonds in an amount not less than the full amount of the Excess Costs.