First redevelopment questions?
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[{"id": "eq2e5vl", "text": "Flipper and residential remodeling contractor here.\n\nI guess it depends on how in depth the renovations are. There are some big differences between residential and commercial construction when it comes to structure and mechanicals, but for the most part finishes are finishes (plus it\u2019s their office, if they want a shit flooring job it\u2019s on them), but as long as they get permits and inspections, it *should* be fine.. \n\nIf you want to be extra safe maybe you tell them that they either use a pre-approved contractor or they will have to pay for the owner to hire an independent inspector to verify the work. \n\nIf they still want to do the work themselves, you absolutely need to get the owner listed as an additional insured on their liability insurance. \n\nAlso, you need to call their insurance company and verify that they are covered for commercial work. I know my liability insurance specifically says residential only.", "replies": [{"id": "eq2x8gb", "text": "&gt;There are some big differences between residential and commercial construction when it comes to structure and mechanicals, but for the most part finishes are finishes (plus it\u2019s their office, if they want a shit flooring job it\u2019s on them)\n\nNot exactly true.  LL is giving them free rent credits in exchange for paying for improvements that will remain in the building if they leave at the end of their term or go belly up before that.  You want the space, including the finishes, to be in as leasable condition as practically possible.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eq2ukj9", "text": "No user is the same, but some layouts and finishes can be used second time around. \n\nYour cousin is your client, so do what you feel is in his best interest. But it is ultimately your cousins decision. \n\nCommunication is everything, so lay it all out and let your client decide the path while you do the guiding.", "replies": [], "depth": 1}, {"id": "eq306pb", "text": "How much abatement are we talking? How long of a term? What is the sf? $400k seems like a lot unless it\u2019s a massive shell with no plumbing?", "replies": [], "depth": 1}, {"id": "eq4jx1r", "text": "Did you underwrite the proposed tenant yet? What is the return for your uncle?", "replies": [], "depth": 1}, {"id": "eqbl3p7", "text": "I would add contingency to the lease regarding the buildout. For example,\n\n\u201cWithin fourteen (14) days after Lease Commencement, Tenant shall furnish to Landlord two (2) complete sets of plans and specifications for Tenant\u2019s Work (signed and sealed by a registered Florida architect, if required by applicable zoning laws). Such plans and specifications shall show the layout, fixturing, interior finish and storefront plans for the Leased Premises and any other work or equipment to be done or installed by Tenant affecting any structural, mechanical or electrical component of the Leased Premises or the Center. Tenant shall not commence the construction of any portion of the Tenant\u2019s Work, until such time as Landlord has approved in writing such plans and specifications for Tenant\u2019s Work. All of Tenant\u2019s Work shall be performed in a good and workmanlike manner and shall be free from all defects in workmanship and materials.\u201d\n\nThen add the following;\n\n\u201cPromptly following Landlord\u2019s written approval of the Tenant\u2019s Work, Tenant\u2019s selection of Tenant\u2019s Contractor and the receipt of all bids from subcontractors, Tenant will prepare a construction schedule outlining the major milestones of planned progress of construction of the Tenant Improvements (the \u201cConstruction Schedule\u201d) and deliver a copy of the Construction Schedule to Landlord.\u201d", "replies": [], "depth": 1}, {"id": "eqerdhl", "text": "As a real estate developer and former GC I believe these comments are generally good advice.\n\nOne additional point to consider, you definitely should have insurance, however, being named as an additional insured is not worth the paper it is written on. My development company was named as an additional insured with the GC on a condominium, project in 2007. When problem arose and it became necessary to use that insurance the [company](https://letsfixitup.com/) would not cover me. They covered the GC okay, but I had to sue the GC and their insurance company to get coverage.", "replies": [], "depth": 1}]