Require As-Built Drawings from Tenant Doing Construction Work
Your tenant's lease or work letter may say that if the tenant does construction work at its space—such as erecting improvements—it must give you documents to prove that the work was done properly. For example, the tenant may have to supply you with a certificate of occupancy from your local government, contractor affidavits, and lien waivers.
But if your lease or work letter is like many we've seen, it might not require the tenant to give you another vital piece of information—drawings of the finished construction work. Without them, you're at a huge disadvantage. For example, you might not know where the tenant has relocated wires, and so, accidentally destroy that wiring while making alterations to the space after the tenant moves out. Fixing that damage could be very costly for you.
You can plug this loophole by requiring that the tenant give you “as-built” drawings, says Fort Lauderdale attorney Eric D. Rapkin. As-built drawings are blueprints prepared by the tenant's architect, showing the space after the construction work is finished. They show changes to the space—including new or redirected wiring or pipes behind the walls—to give you an accurate picture of the location of the new improvements as they were actually built.
When As-Built Drawings Can Help
Besides helping you locate improvements or alterations in the space after the tenant moves out, as-built drawings can be valuable in other situations, says Rapkin. For example:
Space is damaged. If fire or another disaster damages the space, the drawings will help you and the tenant determine how the space needs to be rebuilt or restored.
Space is sublet or assigned. If a subtenant or assignee moves into the space, the drawings can help you track whether the subtenant or assignee changes or removes any of the improvements.
Lender/buyer requires blueprints. If you want to sell or finance your building, the buyer or lender will likely require you to hand over accurate blueprints of the building. The as-built drawings should satisfy this requirement for the tenant's space.
What Lease Should Say
To get as-built drawings, have the lease or work letter require the tenant to give them to you as soon as its construction work is done. You also want the tenant to include a list and description of all work done by the contractors, subcontractors, and material suppliers, says Rapkin. The aim is to get an accurate and complete picture of the work done to the tenant's space, he explains.
To do this, Rapkin suggests that you add the following language to your lease or work letter where it discusses which documents the tenant must give you to show that the construction work was done properly:
Model Language
(x) As-built drawings of the Premises, with a list and description of all work performed by the contractors, subcontractors, and material suppliers.
CLLI Source
Eric D. Rapkin, Esq.: Shareholder, Akerman Senterfitt, 350 E. Las Olas Blvd., Ste. 1600, Fort Lauderdale, FL 33301-2229; (954) 463-2700; ERapkin@Akerman.com.