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CAPITAL & CONDITION · CRITICAL REVIEW PRIORITYLEASE TOPIC · Tenant improvements, allowance and landlord work

Who builds the premises, who pays, and when is the money released?

Use this page to control the landlord work, tenant work, allowance, approvals, conditions, draw documents, ownership and closeout requirements.

TenantLandlordFinanceOperationsLegal
See what this page does ↓
WHAT THIS PAGE IS

A guide that turns this lease term into a practical next step.

Use this page to control the landlord work, tenant work, allowance, approvals, conditions, draw documents, ownership and closeout requirements.

01Understand the termSee what it controls in everyday language.
02Check your situationGet the first questions for your side of the deal.
03Do the workOpen the matching workspace and organize the evidence.
MAKE IT SPECIFIC TO YOU · ABOUT 20 SECONDS

What are you trying to do?

Choose your side and the situation you are dealing with. We will show you what it probably means, what to check first and where to continue.

01 Which side are you on?
02 What is happening?

Important: This helps you understand and organize the issue. The signed lease, amendments, facts and applicable law still need qualified review.

01 · WHEN THIS PAGE IS FOR YOU

Use this when one of these situations is real.

Negotiating buildout
Managing construction
Claiming the allowance
IF YOU ARE THE TENANT

Know which costs are funded, which documents unlock payment and what remains tenant capital.

IF YOU ARE THE LANDLORD

Control scope, approvals, lien risk, draw evidence and building standards.

02 · WHAT YOU ACTUALLY DO

Turn the clause into a controlled decision.

  1. 01

    Separate landlord work, tenant work and exclusions.

  2. 02

    Record allowance eligibility, conditions, timing and expiry.

  3. 03

    Track approvals, changes, invoices, holdback and evidence.

  4. 04

    Close deficiencies, permits, warranties and final payment.

DOCUMENT-REVIEW BOUNDARY

This page is a practical checklist—not lease wording.

The actual meaning depends on the complete lease, amendments, facts and governing law. Use the prompts below to extract and brief the issue; do not paste this page into a lease as a substitute for drafting and legal review.

03 · QUESTIONS TO ANSWER

What the business team needs to know

  1. What documents trigger allowance payment?
  2. Who owns schedule, permits, change orders and deficiencies?
  3. What happens if cost exceeds the allowance or work misses the outside date?
04 · WHAT TO CAPTURE

What to capture from the document

01

Landlord work

Capture scope, standard, plans, completion evidence and deficiencies.

02

TI allowance

Record amount, eligible costs, conditions, submission deadline and payment timing.

03

Tenant work process

Capture approvals, contractors, insurance, liens, access and restoration.

05 · WHAT TO WATCH FOR

Terms that can change the practical outcome

  • An allowance that expires before practical invoice submission
  • Landlord work described without drawings or performance criteria
  • Change approval that shifts delay risk without cost control
06 · PROFESSIONAL REVIEW

What qualified counsel needs to test

Reconcile the work letter, plans, budget, allowance, completion standard, lien process, timing relief, ownership and surrender obligations as one project allocation.

Accounting handoff: Carry only accountant-approved commencement, term, payment, incentive, cost and restoration inputs into the Lease Accounting workbench. The clause label does not determine IFRS, ASPE or tax treatment.

Leasing-pipeline handoff: Carry only the sourced space, current stage, proposed term, economics, conditions, activity and next action into the landlord pipeline. A stage or probability does not establish authority, market rent, tenant credit, legal completion, collection, accounting treatment or occupancy.

Amendment-control handoff: Carry the executed source, authority, effective date, changed categories, revised term and approval evidence into Lease Amendment & Change Control. The workspace sequences entered facts; it does not interpret wording, establish enforceability or replace legal, accounting or tax review.

Commencement-control handoff: Carry the exact source, planned and actual events, accountable owner, required authority or professional evidence and every affected gate into Lease Commencement & Handover. A completed workflow task, key delivery or permit reference does not determine possession, acceptance, lawful occupancy, rent commencement or accounting treatment.

07 · AUTHORITATIVE SOURCE DESK

Jurisdiction and statutory context

These sources support limited context only. They do not decide how the actual lease operates.

Canada Revenue Agency — Commercial real-property rentals ↗CRA memorandum on commercial rent, additional rent, tax registration and common lease inducements.
BUILD THE EVIDENCE SCHEDULE

Control the buildout capital.

Track scope, approved changes, commitments, invoices, allowance eligibility, holdback and closeout evidence.

Open TI Budget →