Know Your Clause
Additions, Alterations and Re-construction
“Tenants, do you know that understanding the clauses stated in your lease document is critical to your thriving businesses at the parks? Your lease is an agreement that guides the relationship between you – the tenants; and e TecK- the landlord, therefore operating within these terms and conditions means less stress for both parties. Many times tenants may not be even aware that they are in breach because they have not reviewed their lease documents in detail; intimate knowledge of your lease document is key. Unfortunately, a breach can lead to the forfeiture of your lease but this can be avoided if the correct procedure is followed.”
“Know Your Clause” is a new segment to promote greater awareness and understanding of critical clauses found in tenants’ lease documents. Over the next few months, we will be highlighting clauses such as: – User, Additions, Alterations and Reconstruction, Assignment, Use of the Common Area and many more. We have already focused on the following:
This month we will be looking at the Additions, Alterations and Reconstruction.
Q.1. What does the Additions, Alterations and Reconstruction Clause look like?
A.1. See Clause below as taken from lease document.
Additions, Alterations and Reconstruction
Not at any time during the Term without the prior consent of the Landlord:-
(i) to unite the Leased Premises with any adjoining premises or boundary;
(ii) to erect any new or additional plant, buildings or any other structures on the Leased Premises; or
(iii) to make any structural alterations or additionsto the Leased Premises, and
if at any time during the Term there shall be occasion for the Tenant to rebuild any building or plant or other structure or any part of them or to erect any new building, plant, structures or alterations or additions the Tenant shall do so in accordance with plans, elevations and specifications and in such position as shall be previously approved by the Competent Authorities and submitted to and approved by the Llandlord whose approval shall not be unreasonably withheld.
Q.2. Can a Tenant Make Changes to an Additions, Alterations and Reconstruction Clause?
A.2. The answer is No, this is a standard clause in the Lease document.
Q.3. What is the Procedure if I want to make additions and alterations to my existing property?
A.3. The following steps should be followed:
Step 1 – Tenant must send a written request to the Manager, Tenant Relations, e TecK for consent to make additions and alterations.
Step 2 – The Property Officer will conduct a site visit. If the tenant has no breaches, the tenant will then move on to Step 3.
Step 3 – The tenant must supply plans and specifications (4 copies) to e TecK.
Step 4 – e TecK assesses, stamps and returns document to the Tenant. The tenant has to forward the stamped documents to the Town and Country Planning Division as well as relevant statutory bodies to obtain approvals.
Step 5 – The Tenant provides a copy of the approval to e TecK and then can proceed to commence work.
Q.4. What happens when a tenant is found to be in breach of the Additions, Alterations and Reconstruction Clause?
A.4. The tenant is issued a Breach Letter providing a deadline to submit building plans to eTecK for review. In the letter the tenant is mandated to cease all construction. If the plans are not submitted and construction continues; eTecK engages the Legal Department to commence action for forfeiture of the tenant’s lease.
For further information on the clauses found in the Terms and Condition of your lease, please contact the Property Officer for your park or the Industrial Parks-Lease Administration Department at 1-868-675-1989
On the next issue of Tenants eBits we will be focusing on Landscaping.