Commercial Tenant Improvement

This proposal covers tenant improvement build-out at {{client_address}} — {{space_sqft}} sq ft, use: {{space_type}}. Scope per approved TI plans and landlord work letter {{landlord_work_letter}}.

Demolition & prep

• Remove non-structural partitions, existing flooring, ceiling tiles, and utilities not in scope

• Dust walls and floor protection to adjacent tenant spaces

• Coordinate building manager for after-hours noisy work (if required)

Framing & drywall

• Metal stud partition walls per plans; fire-rated assemblies where required

• Drywall, tape, and texture to match existing or per spec

• Ceiling grid modifications; new ACT tile install

Mechanicals

• Electrical: new circuits, panels, lighting, emergency lighting, exit signs per code

• Plumbing: restroom modifications, break room sink, grease trap (if restaurant)

• HVAC: ductwork modifications, new diffusers, VAV reconfiguration; commissioning

• Fire sprinkler relocation/addition per shop drawings by licensed fire sub

• Low-voltage rough-in: data, phone, A/V per IT requirements

Finishes

• Flooring: VCT, LVT, carpet tile, or polished concrete per plan

• Paint all walls per color schedule

• Millwork: reception desk, built-ins, casework per plan

• Storefront glass, interior glass walls (if applicable)

• Signage coordination (signage by others unless included)

Closeout

• Final inspections: building, electrical, plumbing, mechanical, fire, health dept (if applicable)

• Certificate of Occupancy

• As-built drawings delivered to landlord

• Final clean

Estimated duration: 8–14 weeks from permit issuance to CoO, depending on scope complexity and jurisdictional turnaround.

**Critical path items:** Permit plan review (3–6 weeks typical), long-lead mechanical equipment, health department review (for food service). Project schedule is re-baselined at permit issuance.

Start date: on or about {{start_date}}. Target completion: {{completion_date}}.

Total contract price: {{total}}

Fixed-price. Draw schedule follows AIA G702/G703 format with monthly invoicing for percentage-complete:

• **Deposit: {{deposit}}** — signing (covers permit, mobilization, long-lead orders)

• **Monthly progress draws** — invoiced the last business day of each month based on percentage-complete schedule of values

• **10% retention** withheld from each draw; released upon CoO and punch list sign-off

• **Final draw** — after CoO, punch completion, and submission of close-out documents (as-builts, O&M manuals, warranty package)

Monthly AIA-format billing, net 30. Retention of 10% held until CoO and close-out. {{contractor_name}} provides conditional lien waivers with each invoice and unconditional waivers upon payment. For tenant-paid portions, {{client_name}} may not set off landlord-tenant disputes against amounts owed under this contract.

Invoices are due upon receipt. Payments more than ten (10) calendar days past due accrue a service charge of one and one-half percent (1.5%) per month on the unpaid balance, or the maximum rate permitted by law, whichever is less. {{contractor_name}} reserves the right to stop work and preserve lien rights if any progress payment is not received within five (5) business days of the due date. All retained mechanic's lien, stop notice, and bond rights under applicable state law are preserved.

The following items are specifically NOT included in the contract price and are the responsibility of {{client_name}} unless added by written Change Order:

• Permits, plan-review fees, and jurisdictional inspection fees unless explicitly itemized above

• Repair or remediation of pre-existing code violations discovered during the work

• Asbestos, lead paint, mold, or other hazardous material abatement

• Structural engineering, architectural drawings, or third-party design services

• Finish selections, fixtures, or appliances not listed in the itemized scope

• Work on concealed systems (electrical, plumbing, HVAC, framing) beyond the points of connection identified

• Landscaping restoration beyond returning disturbed areas to rough grade

• Post-completion cleaning beyond construction broom-clean

• Landlord-provided items per work letter (typically shell, ADA path-of-travel, base building systems)

• Tenant-supplied FF&E (furniture, fixtures, equipment)

• Signage design, fabrication, and installation

• POS, A/V, security, or IT equipment beyond low-voltage rough-in

• Business license and health department fees

• Commercial kitchen equipment (for restaurant TIs) unless separately contracted

This proposal is based on the following assumptions. If any assumption is incorrect, the contract price and schedule are subject to adjustment by Change Order:

• Site access is available during normal working hours (7am–5pm, Monday–Saturday)

• Adequate parking is available within 100 feet of the work area

• Electrical power and potable water are available on-site at no cost to contractor

• Existing structural elements, waste lines, water supply, and electrical service are in serviceable condition unless noted

• {{client_name}} will remove personal property, artwork, and valuables from the work area prior to start

• Work is based on a single mobilization; re-mobilization required due to delays outside contractor's control will be billed at current rates

• Landlord approves plans and authorizes access within 10 business days of submission

• Building-standard materials are specified; tenant upgrades priced by Change Order

• After-hours work is budgeted for 1 weekend day; additional after-hours requests billed at premium rates

Any modification to the scope, specifications, materials, or schedule set forth in this agreement must be authorized in writing as a Change Order signed by both parties before the work is performed. Each Change Order will describe the modified scope, any adjustment to the contract price, and any impact on the schedule. Verbal instructions do not modify this agreement. Additional time and cost associated with unforeseen conditions — including but not limited to concealed rot, asbestos, mold, faulty prior installation, unmarked utilities, or code-required upgrades triggered by the work — will be documented as a Change Order and billed at the rates stated in this proposal or at {{contractor_name}}'s then-current published labor rates, whichever is in effect at the time the condition is discovered.

{{contractor_name}} warrants the workmanship of the installed work for a period of one (1) year from the date of substantial completion. Manufacturer warranties on materials and equipment pass through to {{client_name}} as provided by the manufacturer and are the exclusive source of any material warranty. This warranty does not cover normal wear, abuse, neglect, acts of God, subsequent work performed by others, damage from settlement or movement of the building, or modifications to the installed work performed without written consent. To make a warranty claim, {{client_name}} must notify {{contractor_name}} in writing within thirty (30) days of discovering the alleged defect and allow reasonable access to inspect and repair.

This proposal is valid for 45 days from the proposal date ({{proposal_date}}). Pricing is subject to change after that date due to material market fluctuations and scheduling availability. Acceptance requires signature below and receipt of the deposit amount stated in Payment Terms. Upon acceptance, this proposal, together with any attached specifications and subsequent written Change Orders, constitutes the complete agreement between the parties and supersedes any prior oral or written discussions.

**{{contractor_name}}** — License {{contractor_license}}

By: ________________________ Date: ______________

Print Name: ________________________

**{{client_name}}** — Owner / Authorized Representative

By: ________________________ Date: ______________

Print Name: ________________________

Property Address: {{client_address}}