Draft lease for 7 World Trade Center, March 1998

NYC 9/11 Public Portal Document

be part of the Work Cost.

Within ten (10) business days after DRES’s approval of the Final Plans, and prior to the commencement of the Tenant’s Initial Work, Landlord shall submit to DRES completed DRES cost estimate forms and promptly upon receipt by Landlord all of the Port Authority administrative approvals with respect to the Final Plans and completed DRES cost estimate forms. The cost estimate forms shall be completed by the bidders approved by DRES and Landlord and shall indicate in reasonable detail the proposed cost of Tenant’s Initial Work after Landlord, (i) shall have obtained three (3) competitive bids, proof of which will be supplied to DRES, by three (3) subcontractors of each trade pre-approved by DRES, of which Landlord or an affiliated entity may be one; and (ii) shall have selected the lowest? responsible bidder, except that Landlord shall designate sprinkler and fire alarm subcontractors, whose bids shall be reasonably competitive for first class office buildings in Manhattan. If Tenant shall dispute that such bids of the sprinkler and fire alarm subcontractors are so reasonably competitive, said subcontractors shall be as designated bv Landlord, subject to the right of Tenant to have such issue \ resolved by arbitration as provided in Paragraph (J) of this Article.

DRES shall, within five £5} business (5) days of its receipt of Landlord’s notice of the Work Cost, approve or disapprove the Work Cost. If DRES^isapproves, it will meet with Landlord within five (5) days to determine an agreed upo^ost. As part of the process DRES will meet with the lowest bidder to resolve any discrepancies in unit prices and quantities. In the event Landlord and DRES are unable to resolve their ^ferences and agree upon the Tenant’s Initial Work cost items. Landlord shall solicit bids fr^ at least three (3) new subcontractors designated by DRES in which case the procedures ^d time frames with respect to the bids shall \3 apply to such additional bids and bidders. Withiryfive (5) business days from approval of the Tenant’s Work Cost and prior to commencing construction. Landlord will upon receipt submit a copy of the work permit (or alternative docurmmt issued by the Port Authority) to DRES. Landlord shall c mce construction wUnin (5) business days after the later of (x) approval by Tenant of the Work Cost (v) receipt bv Landlord of Port Authortv approval / to^ommence construction All subcontractors shall be approved by Landlord, have a good —-''"’^^utation, be acceptable for the performance of such work in other first class office buildings in Manhattan to meet Landlord’s reasonable requirements for the Building.

The Work Cost shall be subject to audit by the Department of Citywide Administrative Services and/or its authorized representative. Such costs may, in the discretion of the Comptroller of the City of New York, also be post-audited by the Comptroller.

(C) In all instances where Tenant is required to supply information or authorizations with regard to Tenant’s Initial Work, Tenant shall supply the same within three (3) business days after written request therefor by Landlord, except in such unusual case where more than three (3) business days shall be reasonably necessary due to the nature of such request but. Tenant shall promptly commence and diligently proceed to supply the same to Landlord.

F:\CR\LHC\ 4219.1016\NEWLSE.7 16

NYC-WTC_000169856