Agreements for lease for construction lawyers—time issues

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Agreements for lease for construction lawyers—time issues
  • Extensions of time
  • Consequences of failure to complete
  • Delayed rent commencement
  • Liquidated damages
  • Long stop date
  • Completion
  • Early access

Agreements for lease for construction lawyers—time issues

Delay in completion of the landlord’s works can be of far greater concern to a tenant than whether the works have been built in accordance with the specification or if the collateral warranties or contract assignments will be delivered as promised. Usually, the tenant's primary objective is to get into the premises and begin trading. As such, the date for completion of the developer/landlord’s works is key—the target completion date will usually, however, be subject to extensions of time. This Practice Note looks at how the target date for completion may be pushed out and what happens if the landlord does not complete the works on time (including the potential for liquidated damages). It also considers how the tenant may be given early access to the property to carry out its own fitting out works.

Extensions of time

The usual position under an agreement for lease is that the tenant will be required to enter into the lease once practical completion, as defined under the agreement for lease, has been achieved. Practical completion under the agreement for lease will often be the same as practical completion under the building contract, but not always—see Practice Note: Agreements for lease for construction lawyers—practical completion. An agreement for lease will usually also contain a target completion date for the construction works and this

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