4
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.
Maintenance and Repairs
Negotiation strategy
Negotiate for clear definitions of routine maintenance tasks to avoid unexpected costs. Ensure timelines for repairs are reasonable and penalties for nonperformance are enforceable.
Secure agreement on major structural repairs and capital improvements to protect property value. Advocate for shared costs on significant projects to mitigate financial burden.
Essential elements
1
Routine Maintenance
Day-to-day upkeep tasks.
2
Major Structural Repairs
Significant building repairs.
3
Capital Improvements
Long-term property enhancements.
Action framework
ACCEPT
Propose edits if timelines or penalties are missing.
EDIT
Reject if responsibilities are not clearly divided.
ADD
Add language for cost-sharing and approval processes.
PRO TIP
Always define specific tasks and timelines to prevent ambiguity in maintenance responsibilities.
Real-world examples
FAVORABLE
Preferred Maintenance Clause
"The Tenant shall be responsible for routine maintenance and minor repairs of the premises, including but not limited to [list specific tasks]. The Landlord shall be responsible for major structural repairs and capital improvements, subject to prior written approval from the Tenant for any project exceeding [specified amount]. Costs for capital improvements shall be shared equally, unless otherwise agreed. All repairs must be completed within [specified timeframe], with penalties for nonperformance as follows: [list penalties]."
NEUTRAL
Fallback Maintenance Clause
"The Tenant and Landlord shall mutually agree on the division of maintenance and repair responsibilities, with cost-sharing arrangements to be determined on a case-by-case basis. All repairs and improvements require mutual consent and must adhere to agreed timelines."
UNFAVORABLE
Vague Maintenance Responsibilities
"The parties shall discuss and agree on maintenance and repair responsibilities as needed, without specific timelines or penalties."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure that maintenance responsibilities are clearly defined to prevent costly delays and disputes. Consider additional insurance or guarantees.
Shared Commercial Spaces
For shared commercial spaces, establish a joint maintenance committee to oversee responsibilities and ensure equitable cost distribution.
Historic Properties
Historic properties may require specialized maintenance and repair clauses to preserve their integrity. Include provisions for expert consultations and approvals.
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WEEK 1
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WEEK 2
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WEEK 3
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WEEK 4
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