Addendum

TXR 2112 — Commercial Lease Construction Addendum - Tenant to Complete Construction

TXR 2112 is a construction addendum for commercial leases where the tenant is responsible for completing improvements to the leased premises. It covers the license to enter before lease commencement, the cap on the landlord's reimbursement of construction costs, the plan submission and approval process with its deadlines, change orders, contractor requirements, construction standards, the completion deadline and extensions, the supervising person, lien-free completion, bonds, contractor insurance minimums, and the tenant's assumption of liability.

Source: TXR
Form Number: 2112
Category: Addendum
Revised: April 1, 2018

Used For

COMMERCIAL_LEASING

Form Outline

The TXR 2112 form is organized into the following sections:

  1. Addendum Header
    "ADDENDUM TO THE COMMERCIAL LEASE BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE LEASED PREMISES AT ___". The premises are repeated in the running header of pages 2–4 ("Leasehold Construction Addendum concerning ___").
  2. A. Execution and License to Enter
    "In the event the term of the lease has not yet commenced, Landlord grants Tenant a license to enter into the Property and the leased premises effective ___ for the purposes of constructing the improvements described under this addendum."
  3. B. Construction Costs
    "Not later than 10 days after the construction is complete and Tenant has satisfied all of Tenant's obligations under this addendum, Landlord will reimburse Tenant the cost to construct the improvements in an amount that does not exceed ___." (two lines).
  4. C. Approval of Plans
    "(1) Not later than ___, Tenant will submit to Landlord plans and specifications … (2) Within ___ days after Landlord receives the plans … Landlord will notify Tenant whether the plans are approved or disapproved … (3) If the plans are disapproved, Tenant will, within ___ days after receipt of the disapproval notice … submit amended plans … If Tenant is unable or unwilling to satisfy Landlord's reasons for disapproval by ___, and: (a) … this Addendum will have no further effect; or (b) … the lease will terminate."
  5. D. Change Orders
    "Landlord will approve or disapprove any proposed change within ___ days after Landlord receives a copy of the proposed change order from Tenant." Silence is deemed approval.
  6. E. Contractor
    Print only: Tenant contracts with contractor(s) acceptable to Landlord; subcontractors must be acceptable to Landlord.
  7. F. Construction
    Print only: construction per the final plans and all laws; no damage to the Property, no interference with other tenants, no obstruction of common areas; Landlord may inspect; staging and debris rules.
  8. G. Completion
    "(1) Tenant must substantially complete the construction of the improvements … on or before ___." Extensions are limited to the lesser of the delay or "___ days". "(3) The supervising person is ___."
  9. H. No Liens
    Print only: lien-free completion guaranteed; lien waivers, certificate of occupancy and commencement of business before reimbursement; liens removed within 20 days of notice; indemnity.
  10. I. Bonds
    "Before commencement of any construction, Tenant and Tenant's contractors, at no cost to Landlord, must post the following bonds in favor of the Landlord in the amounts specified: ___" (three lines).
  11. J. Insurance
    "(2) … certificates of insurance … evidencing that any contractor maintains insurance to protect Landlord, Tenant, and the contractor from: ❑ (a) workman compensation claims and other employee benefit acts in an amount not less than $___ per occurrence; ❑ (b) claims for damages from bodily injury or death to employees and others in an amount not less than $___ per person and $___ per occurrence; and ❑ (c) property damage in an amount not less than $___ per occurrence." Each box is checked automatically when its minimum is entered.
  12. K. Tenant's Assumption of Liability
    Print only: Tenant pays and discharges all construction-related costs, liens and liabilities and holds Landlord harmless.
  13. L. Special Provisions
    "L. Special Provisions: (If applicable, include any business details, factual statements, or any requirements the parties must satisfy [for example, Landlord's obligation to complete shell construction by a certain date or by the time the license under Paragraph A commences].)" followed by unruled space on page 4 (about eleven lines).
  14. Signatures
    "Landlord: ___" and "Tenant: ___" (two lines each), then two signer blocks per side: "By: ___", "By (signature): ___", "Printed Name: ___", "Title: ___". No Date lines. Signature lines are e-sign tabs placed when the document is sent.

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