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.
Why This Matters: Predictable term and renewal provisions provide operational certainty or a planned exit. They minimize risk of being locked into unfavorable conditions or facing unexpected vacancies.
Negotiation strategy
If you're the Tenant:
Negotiate for flexible renewal options and clear termination windows to align with business growth and contraction needs.
If you're the Contractor:
Ensure the lease terms provide stability and predictability, while allowing for market rate adjustments upon renewal.
Essential elements
1
Lease Duration
Defines the initial lease term.
2
Renewal Options
Outlines conditions for lease extension.
3
Termination Notice
Specifies required notice period.
Action framework
ACCEPT
Propose edits if the renewal terms do not align with strategic business timelines.
EDIT
Reject if the clause lacks flexibility or imposes undue financial burdens.
ADD
Add language to address jurisdiction-specific requirements or high-value leases.
PRO TIP
Always verify compliance with local laws regarding lease renewals and terminations.
Example clauses
FAVORABLE
Flexible Renewal Terms
"The lease may be renewed for an additional term of five years upon mutual agreement of the parties, with notice given at least 90 days prior to the end of the current term."
NEUTRAL
Standard Renewal Clause
"The lease shall automatically renew for a one-year term unless either party provides written notice of termination at least 60 days prior to the end of the current term."
UNFAVORABLE
Restrictive Renewal Conditions
"The lease may only be renewed at the sole discretion of the lessor, with terms subject to renegotiation."
Fallbacks
Jurisdiction-Specific Requirements
Ensure compliance with local laws regarding lease renewals and terminations. Adjust the clause to meet jurisdiction-specific requirements.
High-Value Lease
Involve senior legal counsel to review terms and negotiate favorable conditions due to the high financial impact.
Short-Term Leases
For short-term leases, prioritize flexibility in renewal options to accommodate rapid business changes.
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
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DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.