10
PLAYBOOK TEMPLATES
Construction Build-Out Agreement
A Construction & Build-Out Agreement governs property improvements or fit-outs between owner and contractor. This playbook discusses scheduling, change order processes, and liability for defects.
Environmental Liability
Negotiation strategy
Negotiate to limit liability to contamination directly caused by your operations. Ensure any remediation costs are capped and seek insurance coverage where possible.
Ensure the tenant is responsible for contamination they cause. Retain rights to conduct assessments and require corrective actions to protect your property.
Essential elements
1
Responsibility Allocation
Defines party liability for contamination.
2
Remediation Process
Outlines steps for cleanup obligations.
3
Inspection Rights
Grants rights to assess environmental conditions.
Action framework
ACCEPT
Propose edits if the clause does not clearly allocate liability or lacks a remediation process.
EDIT
Reject if the clause imposes unlimited liability or lacks inspection rights.
ADD
Add language if the clause is missing indemnity obligations or cost caps.
PRO TIP
Always ensure environmental liability clauses align with current environmental laws and company policies.
Real-world examples
FAVORABLE
Preferred Clause
"The Tenant shall be responsible for all costs associated with the remediation of any environmental contamination caused by its operations. The Landlord retains the right to conduct environmental assessments and require corrective actions as necessary."
NEUTRAL
Fallback Clause
"Both parties agree to share the costs of environmental testing and remediation, with a cap of $100,000, unless otherwise covered by insurance."
UNFAVORABLE
Unclear Liability Clause
"The parties will discuss responsibility for environmental issues as they arise, without predefined obligations."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure comprehensive testing and remediation plans are in place, with clear cost-sharing arrangements.
Pre-existing Contamination
Differentiate between pre-existing and new contamination, ensuring the landlord is responsible for pre-existing conditions.
Shared Facilities
In shared facilities, clearly define each party's responsibilities and rights to conduct environmental assessments.
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WEEK 2
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WEEK 3
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WEEK 4
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