Construction of warehouse hall on a build-to-suit basis

We provided legal assistance to a manufacturer operating in the aviation and automotive industry with the establishment of new headquarters of the company and the construction of a warehouse and production hall. Our Client chose and purchased a real property dedicated for the future investment. The new headquarters as well as the warehouse and production hall had to meet specific requirements necessary for the purposes of the increasing production. The goal of the investment was to construct a building in accordance with the design documentation prepared by the Client and with the building permit obtained by the Client. After a call for tenders and a few rounds of negotiations, the contractor was selected and awarded a contract for turnkey construction of the building on the real property purchased by the Client. Before the construction works began, the building permit and the title to the property had been transferred to the contractor. The transfer was preceded by due diligence of the real estate and regulation of its legal status. The contract concluded with the contractor was a comprehensive contract, including elements of a general contractor contract and a multi-year lease agreement (lease agreement on a build-to-suit basis). The development part of the contract stipulated, among other things, the Client's rights to make changes in the design documentation constituting the basis for the obtained permits, numerous securities for the Client in the case of the failure to perform the contract or its performance not in line with the agreed schedule, participation in interim acceptance procedures, early access or detailed procedure for the acceptance of the premises and for the removal of any potential defects. The part related to lease provided, among other things, for the possibility of long term use of the developed real estate, right to unilaterally extend its term and to exercise a break option, possibility for the Client to manage the property on their own and right to transfer the title to the real property back to the Client. After the construction completion, we supported the Client with the procedure of the property acceptance and defect removal, as well as current performance of the lease agreement.