Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyKickerFeaturesSectionsNewsLJN Newsletters

Construction Chargebacks: The Hidden Costs

By Glenn A. Browne
November 30, 2015

Virtually every retail lease contains what is commonly referred to as the “Construction Exhibit.” Certain retail leases divide the Construction Exhibit into several smaller exhibits that address different portions of the tenant's construction work, including plan submittal, application for permits, insurance, lien waivers, signage, security and construction deposits. In addition, virtually every retail lease addresses a category commonly referred to as “chargebacks.” The chargebacks address certain items for which the landlord seeks payment or reimbursement from the tenant for various aspects of the tenant's construction work. These construction chargebacks may include:

  • Barricade charges;
  • Plan review fees/engineering fees;
  • Temporary utilities;
  • Sprinkler drain-down fees; and
  • Fee for work and/or materials provided by the landlord as part of the tenant's construction work.

This article addresses the manner in which retail leases attempt to assess these construction chargebacks, and also discusses the manner in which a tenant should address these construction chargebacks in its comments to the landlord's draft of a retail lease.

Barricade Charges

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.