Monthly: May 2014

New Building 

In a new building situation, the accuracy of the civil and utility drawings is paramount. Typically, the largest risk is posed during the site work, and can also arise from utilities and off site items that need to be considered, correctly engineered and estimated, and installed both correctly and timely. The fact that we cannot see underground poses the biggest financial threat to the project. Careful pre-planning with all utility companies for locates of existing utilities and correct civil drawings with proper drainage and flow considerations are just a few concerns.  In addition, the contracting team should be diligent in dust mitigation, knowing the process, timing, and requirements of air quality management authorities, and SWPP (Storm Water Pollution Prevention) plans to mitigate sediment from your site before it pollutes the environment.

For more information on Your Little Black Book of Building Basics, please contact us. It is complimentary to ABG customers or available on amazon.com atwww.amazon.com/Your-Little-Black-Building-Basics/dp/0615352898/ref=sr_1_2

Landlord Rules

As a tenant, your lease agreement should include an exhibit attached or language therein that communicates the landlord’s rules for construction operations. It is imperative that a copy of this document be given to the general contractor that will build out your tenant improvement, and your general contractor should include these rules in all of their subcontract agreements so that every company involved in your project will understand the landlord’s rules.  Typical Landlord rules should spell out on-site working hours, staging areas, trash dumpster locations, security contact information, daily clean up of construction operations, any construction security or damage deposit requirements, permit requirements, any landlord required subcontractors (typically fire alarm and fire sprinkler subcontractors), and, most importantly, insurance requirements for on-site operations. Always check with the landlord to verify whether or not they are carrying a builder’s risk policy for the entire building. We will expand on the importance of this policy under Insurance. (later chapter)

For more information on Your Little Black Book of Building Basics, please contact us. It is complimentary to ABG customers or available on amazon.com atwww.amazon.com/Your-Little-Black-Building-Basics/dp/0615352898/ref=sr_1_2

Tenant Allowance

This is the sum of money granted by the landlord/developer to pay for a portion of modifications that a tenant may require. It is typically a per square foot allocation. Tenant allowances range widely from area to area and change with economic conditions. They also vary with venue and market sector. A competent broker should be able to provide a comparison or matrix of typical tenant allowances by product type, market sector, venue, and market timing. In a heated market with little vacancy and high demand, expect the tenant allowance to be low; and in a down market or recession, expect a higher tenant allowance.

Understand at what point you, as a tenant, will receive the tenant allowance dollars. It is also not uncommon for landlord/developers to review your tenant needs and provide the actual modification on your behalf within a certain dollar limit or specification rather than provide a cash allowance. Landlords tend to provide turn-key spaces in lieu of tenant allowances when they feel they have a team in place that they know and trust to provide the design and construction services, and when they feel they will reduce their costs and deliver the project in a more timely fashion than if the tenant is left to do so on their own. Either approach can result in a good outcome for both parties.

For more information on Your Little Black Book of Building Basics, please contact us. It is complimentary to ABG customers or available on amazon.com atwww.amazon.com/Your-Little-Black-Building-Basics/dp/0615352898/ref=sr_1_2