Section 11 Construction Provisions

• Library: Real Estate Leasing and Landlord-Tenant Actions and Remedies 2011

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Frequently, the lease will require that the landlord or tenant alter an existing building or construct a new building on the leased premises. If the work is of any consequence, the parties must agree on plans and specifications that are prepared in enough detail to permit judicial enforcement and permit the parties to fully understand their obligations. Frequently, the parties will desire to execute a lease with skeleton plans and specifications with a view to later elaboration. This practice is extremely hazardous and should be avoided.

If the tenant is to build the building, the landlord should be provided with a performance and payment bond before construction begins. The...