The following Construction guidance note provides comprehensive and up to date legal information covering:
In an agreement for lease which includes construction obligations, the landlord will be contractually obliged to provide the tenant with a certain building (or part thereof), to a set standard and by a certain time. It will, however, only agree to be liable for defects which appear in the works for a limited period of time after completion—usually the end of the defects liability period (for an example of these provisions, see the Defects Liability clauses in Precedent: Agreement for lease—developer landlord to carry out major works incorporating the Standard Commercial Property Conditions (Third Edition)). For this reason, the tenant will want to monitor the construction process and will require additional contractual protection in the form of collateral warranties or third party rights to protect it in the event that defects arise once the landlord's liability to the tenant has expired. For more information on collateral warranties and third party rights in this context, see Practice Note: Agreements for lease for construction lawyers—collateral warranties and third party rights.
The tenant will often appoint its own surveyor and other consultants to monitor the construction works and to represent the tenant’s interest in relation to various certifications (eg early access, practical completion and remedying defects). Most agreements for lease contain provisions which enable the tenant or its representatives to monitor both p
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