Real Estate associate Daniel Miktus covered various pitfalls for companies to avoid when drafting a construction agreement for a new office space in an article he authored for Law360. He walks through several ways to protect a business’ interests before, during, and after a build-out, including closing liability gaps between the lease and loan terms and the construction agreement, anticipating delays in schedule, handling price escalation and warranties, and what remedies are available in the event of a contractor default.
“It may seem counterproductive to spend time negotiating contract provisions that you don’t think will ever become relevant,” Miktus said. “However, including well-defined termination clauses and remedies can save you substantial time and money in the worst-case scenario.”