Common use of Tenant’s Contingency Clause in Contracts

Tenant’s Contingency. The Project Budget includes the Tenant’s Contingency, which shall be allocated to Project Costs as provided herein. Tenant’s Contingency is not an Other Cost and is not included in the Fixed Price. During the course of the Project, Tenant may request changes in the Project or Tenant Improvements in excess of the Tenant Improvement Allowance, but, if Tenant requires any material improvement or material deviation in the Construction Documents or the Detailed Specifications from the design or level of quality reflected in the Plans and Outline Specifications and the Project Requirements, any resulting increase in design or construction Project Costs and any costs resulting from a delay in the Project Schedule will be charged against the Tenant’s Contingency until the Tenant Contingency is fully expended. No further design changes shall be permitted unless Tenant can demonstrate the availability of funds to reimburse Landlord for any resulting increase in Project Costs and for any costs resulting from a delay in the Project Schedule. To the extent that the Construction Drawings and Detailed Specifications are consistent developments of the Plans and Outline Specifications, the Fixed Price shall not be adjusted for any change in the Project Costs required to construct the Project in accordance with such Construction Documents. Additionally, at Tenant’s option, the Tenant’s Contingency may be used for the design and/or construction of Tenant Improvements desired by Tenant in excess of the Tenant Improvement Allowance or for Additional Mitigation. Any portion of the Tenant’s Contingency unexpended upon Final Acceptance of the Project shall be disbursed to Tenant for payment of the cost of additional Tenant Improvements to the Project or deposited in the Bond Fund.