Commercial Tenant Improvement Construction Contract

Owner (Landlord/Tenant, as applicable): [Name] · Contractor: [Name] · Property/Suite: [Address] · Date: [Date]

1. Scope of Work

Contractor will construct the tenant improvements described in the plans and specifications attached as Exhibit A, within the leased premises.

2. Contract Price

Total price: [Amount], payable per the schedule in Exhibit B, [tied to construction milestones/percentage of completion].

3. Tenant Improvement Allowance (if applicable)

[If Landlord is providing a TI allowance to Tenant: state the allowance amount, how costs above the allowance are handled, and whether unused allowance is forfeited or credited toward rent.]

4. Schedule

Construction will begin on [Date] and achieve substantial completion by [Date], subject to permitted delays (permitting delays, force majeure, owner-caused changes).

5. Change Orders

Any change to the approved plans must be documented in a written change order, specifying the cost and schedule impact, before the change is performed.

6. Permits and Code Compliance

Contractor will obtain required building permits and perform all work in compliance with applicable building codes and the landlord's building rules and regulations.

7. Coordination with Landlord

[State any requirements for coordinating construction access, hours, and noise restrictions with Landlord and other tenants in the building.]

8. Warranty

Contractor warrants workmanship for [Period] from substantial completion.

Owner: ______________________ Date: ____________ Contractor: ______________________ Date: ____________

*Clarifying exactly what happens to an unused TI allowance (Section 3) — whether it's forfeited, credited toward rent, or paid to the tenant — is a term worth negotiating into the lease itself before construction even starts, since it's much harder to resolve after the buildout is complete and the numbers are already in.*