Lease Agreement Terms and Responsibilities Overview
This content provides a detailed overview of standard lease conditions relating to alterations, maintenance, repairs, and insurance in a lease agreement. It outlines the responsibilities of both the tenant and landlord regarding property modifications, upkeep, and insurance coverage, emphasizing the importance of compliance to avoid additional costs or legal issues.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
ELIDZ INVESTOR HANDOVER PRESENTATION Induction Upon Practical Completion
Facilities and Maintenance Obligations Mar 2011
Standard lease conditions ALTERATIONS The tenant may not effect improvements, alterations or additions to the leased premises without the prior written consent of the landlord. Any improvements, alterations or additions which the tenant may effect to the leased premises (with or without the consent of the landlord) shall become the property of the landlord and the tenant shall not be entitled to the payment of any compensation in respect thereof. Notwithstanding the above the tenant shall, if required thereto by the landlord, immediately after the termination date remove all or any improvements, alterations or additions effected by the tenant to the leased premises and reinstate the leased premises to its original condition and make good all damage occasioned by such removal.
Standard lease conditions MAINTENANCE AND REPAIRS The tenant shall be responsible for and shall pay all costs of the maintenance and repair of the whole of the leased premises (excluding structural repairs and roofing, for which the landlord will be responsible) including all running costs of whatever nature as if it were the owner of the leased premises and shall on the termination date deliver the leased premises to the landlord in the same good order and condition as in which received, fair wear and tear only excepted Should the tenant fail to comply with any of its obligations in terms of (the above clause) the landlord shall be entitled to effect the necessary maintenance and/or repairs and to claim the reasonable cost thereof from the tenant, which shall be payable forthwith on demand By definition contained in the lease: Leased premises the property and the building
Standard lease conditions INSURANCE The landlord will ensure the leased premises, but The obligation on the landlord to insure the buildings, in terms of this clause, shall not impose any obligation on it to insure the contents of the building without limitation, equipment, records, stock, loss of profits or any consequential damage Note that insurers often specifically exclude damage arising from fire sprinkler systems In the event of any increase in the cost of insurance brought about by actions of the tenant, such increases shall be borne by the tenant and raised as an additional charge by the landlord
Maintenance obligations Building maintenance leased premises. Apart from any contractual obligations pertaining to WBHO, maintenance obligations to both maintain and repair in accordance with the lease commenced on date of occupation. The ELIDZ has to date, been undertaking considerable maintenance requirements which would ordinarily fall within the scope of the lease. This practise will now cease and conditions of lease will prevail
Maintenance obligations General Principle As a General Principle regarding leased premises under a full maintenance lease, it is widely accepted that the tenant is responsible for the maintenance of the premises, however it is in the interest of the landlord to ensure that: Property insurance policies are not compromised due to lack of maintenance The structural integrity of the premises is not compromised Health and safety aspects pertaining to potentially hazardous installations, are not compromised by virtue of poor maintenance practices. Operations and activities of tenants do not compromise the activities of neighboring tenants In this regard a schedule has been compiled indicating areas of responsibility and interaction between the landlord and the tenant. This schedule should not be viewed as an exhaustive list and items not appearing may be queried with relevant ELIDZ officials.
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Fire detection equipment Inspect Clean & Service Quarterly, repair as required (sounders, panic buttons, detectors, etc.). Service provider log book and records to be made available for inspection on request. Inspect, clean & service bi-annually, repair as required. Service provider log book and records to be made available for inspection on request. Offices & Factory Fire prevention equipment (Extinguishers and Hose reels) Fire Hydrants/Booster Valves Tenant Offices & Factory Inspect, clean & service bi-annually. Repairs will be undertaken by ELIDZ & cost of repairs will be recovered from respective Tenant. Service provider log book and records to be made available for inspection on request Tenant Action ELIDZ Leased area Footprint. An official mutual agreement to be signed by both parties before repairs. Offices & Factory. An official mutual agreement to be signed by Fire Sprinklers Inspect, clean & service bi-annually. Repairs will be undertaken by ELIDZ & cost of repairs will be recovered from respective Tenant. Service provider log book and records to be made available for inspection on request Tenant Action ELIDZ
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant ELIDZ ELIDZ Fire Pumphouse & Sprinkler Valve room testing Inspect, clean & test Monthly, service quarterly .Service provider log book and records to be made available for inspection on request. Additional inspection & tests to be requested in writing and will be for the account of the respective tenant.(eg. conducted by approved ELIDZ contractor). Monthly Tests, Clean, standard checks Quarterly Servicing as per ELIDZ Insurances requirements maintenance/pr ocedure manual to be issued to tenant & weekly inspections Roof fans, extractor fans, & ventilation Louvers Inspect, clean, service & rebalance quarterly. Service provider log book and records to be made available for inspection on request Tenant Air conditioning equipment Inspect, clean filters & units, service quarterly, (clean & replace filters, re-gas, check paintwork on external units annually or as required) (service records to be kept) Tenant Ablutions and plumbing - internal Remove blockages, repair breaks, replace broken fittings, repair / replace washers, etc. as required Tenant Leased Footprint area
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant ELIDZ ELIDZ Plumbing - external General maintenance and repair to external sewer and water supply network by ELIDZ. Removal of blockages, damage to pipes, MH cover, etc. will be undertaken by ELIDZ & cost of repairs will be recovered from respective Tenant. Inspect Clean, Service bi-annually. (repair, lubricate, adjust as required) Leased Footprint. Agreement be signed by both before repairs area to parties Ironmongery - locks, door and window handles etc Bulk Electrical supply & installation up to Main Distribution Board Meter Tenant Inspect, clean & service bi annually. Emergency response, fault finding and repair, as required. Service provider log book and records to be made available for inspection on request ELIDZ
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Tenant Electrical Installation, LV lights, High-bay lights, Plug/Light Circuits, & Internal Machinery External, on-site security lighting and yard "street" lights Inspect & Clean Monthly. Emergency response, fault finding, repair, etc (replacing globes, starters, plug point, etc as required) Any or additions, to be undertaken by accredited Electrician and COC to issued to ELIDZ Leased Footprint. alteration be Inspect & Clean Monthly. Routine/Emergency response, fault finding, repairs, etc as required General maintenance costs by ELIDZ. Damages and/or repair costs other than Maintenance costs will be recovered from respective tenant. Inspect & Clean Monthly. Emergency response, fault finding, repair, etc as required. Generators tests and servicing monthly. Service provider log book and records to be made available for inspection on request ELIDZ area MV Transformers and Associated Estate Standby Generators ELIDZ
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Tenant-Specific Generators Inspect, Test, & Service Monthly. Emergency response, fault finding and repairs as required. Service provider log book and records to be made available for inspection on request Maintenance/pr ocedure manual to be issued to tenant Data & telecommunicatio n cabling in buildings Dock levellers (Where applicable) Inspect, clean & Service bi-annually. Repairs to cabling & outlet jacks as required Tenant Inspect, clean & Service bi-annually. Load testing yearly. Service provider log book and records including load test certificate to be made available for inspection on request. Cut grass, trim and thin vegetation, clean surrounds, weekly, monthly, yearly. Pesticides, herbicides, pruning, etc. as required. Monthly Maintenance costs will be proportioned and recovered from respective tenants Tenant Maintenance/pr ocedure manual to be issued to tenant Agreement be reached to implement this. Landscaping ELIDZ to
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant ELIDZ ELIDZ Landscaping Irrigation (Rain Bird) Inspect, Clean & Maintain monthly (including timer, pop ups, extension stand pipes, supply pipes, etc). Costs for Repairs to pipes, sprinkler heads, pop ups, etc for respective tenants account. Gates Inspect, Clean, Service Quarterly. Repair as required. Tenant All repairs to ELIDZ approval and specification. Boundary Fencing Inspect, Clean, Service maintenance costs by ELIDZ. Damages/repair costs will be recovered from respective tenant. Inspect, Clean, & Service Monthly. Repair as required, within acceptable timescale. Quarterly. General ELIDZ Booms Tenant All repairs to ELIDZ approval and specification.
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Tenant specific Access control systems and equipment. (AE & BW Platform) Shared Access control systems and equipment. (AW & BE Platform) Repair, maintain and inspect as required Cost of replacement ELIDZ Access Cards for Tenant account Cost of replacement ELIDZ Access Cards for Tenant account Repair, maintain and inspect as required ELIDZ Painting; Internally & Externally to Offices & Factory Painting; Parking Lines, Directional Arrows. Etc. External Factory Clean, repair & maintain as required. Inspect bi- annually. Repainting; paint & colours to ELIDZ specification Tenant Clean, repair & maintain as required. Inspect bi- annually. Cost of damages to be recovered from tenant ELIDZ
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Painting; Chevron Clean, repair & maintain as required. Inspect bi- annually. Repainting; paint & colours to ELIDZ specification Flooring: Concrete & Carpets / tiles Clean, repair & maintain as required. Inspect bi- annually. Replacement; patterns & colours to ELIDZ specification Tenant Carpentry Clean, repair & maintain as required. Inspect bi- annually. Replacement/Repairs; handle, hinges, doors, post formed tops, etc styles & colours to ELIDZ specification Inspect, Clean & Service Quarterly. repair and maintain as required Tenant Doors and windows Tenant Signage internal to sites Inspect & Clean Quarterly. repair and maintain as required Tenant Leased Footprint Area
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Glazing - washing and breakages Clean, inspect bi-annually repair & maintain as required. Granite Eye brows - washing and breakages Waste Area's Clean, inspect bi-annually repair & maintain as required. Tenant Inspect, Clean & Maintain weekly (NO Storage of Flammable/Hazardous materials other than in approved storage facility/area). Odour control to be enforced Keep clean and prevent waste being blown / distributed around yard weekly. Disposal of waste on regular basis. No Organic waste to be deposited into metal skips at waste area's. Keep clean and prevent waste being blown / distributed around yard weekly. Organic waste to be removed weekly by approved waste removal company. Organic waste to be stored in appropriate bins. Not in metal skips at waste area. Tenant Waste disposal (non organic) and cleaning of yard Waste disposal (organic) and cleaning of yard Tenant Tenant
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Site Storm water system Keep clean of debris and blockages - weekly. leased footprint area Cleaning gutters Clean as required, inspect bi-annually Tenant Grease/Oil Traps Inspect, clean and maintain weekly. (Safe Disposal Certificates to be kept on site) Tenant maintenance/pr ocedure manual to be issued to tenant maintenance/pr ocedure manual to be issued to tenant Wash Bays including forklift wash bays & associated oil/grease traps Inspect, clean and maintain weekly. (Safe Disposal Certificates to be kept on site) Tenant
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Waste Compactors & Demarcated Area including oil/grease trap. Inspect, Clean & Maintain weekly including oil/grease trap. All materials awaiting compaction to be stored within demarcated area or approved staging area. Safe disposal certificates to be kept on site. (Storage of Flammable/Hazardous materials restricted to relevant approved storage facility) Inspect, Clean & Maintain weekly including oil/grease trap. Safe disposal certificates to be kept on site. (Storage of Flammable/Hazardous materials restricted to relevant approved storage facility) maintenance/pr ocedure manual to be issued to tenant Diesel Store / Forklift re- fuelling area & Demarcated Area including oil/grease trap Tenant maintenance/pr ocedure manual to be issued to tenant
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant Tenant ELIDZ Loading dock Sump Pumps Inspect, Clean & Maintain monthly. Service as required maintenance/pr ocedure manual to be issued to tenant maintenance/pr ocedure manual to be issued to tenant Refresher conducted during renewal. Inline Water Strainers Inspect, clean monthly Tenant Repairs, Alterations, Additions by Tenants Tenant to issue, plans, details, specification, method statements, contractors details, etc. to ELIDZ in writing for consideration. No works to commence without prior written approval from ELIDZ. ELIDZ standard of PPE/ health & Safety to apply Inspect annually - maintain structural integrity as required Tenant to lease Defects to structure - not caused as a result of tenant activities ELIDZ
Maintenance obligations Description Maintenance Requirement Comments Responsibility Tenant ELIDZ ELIDZ Tugger Route Inspect, maintenance costs by ELIDZ. Damages/Repairs costs, other than normal maintenance costs, will be recovered from respective tenant. Inspect weekly for damages, spillages, etc. Keep clean & prevent waste being blown/distributed around yard. Storage areas to be clearly demarcated. All hazardous excess/unserviceable materials, equipment to be stored in appropriate facilities, or at pre-approved demarcated areas. Spillage clean up as per safe disposal terms & conditions. Clean, Service Monthly. General General Hardstands Tenant materials,
Maintenance obligations Inspections by the Landlord Maintenance inspections of all facilities will be undertaken by the IDZ or their duly appointed services providers, on a regular basis as dictated by demand, to ensure adequate maintenance provisions are being implemented. Visits will be coordinated between the ELIDZ and tenant based on required frequency of service or maintenance schedules. Non-performance by the tenant Non-compliance on behalf of the tenant with regard to maintenance commitments will be dealt with in terms of the lease. IDZ contracted service providers The IDZ has in its employ, the services of various maintenance service providers under contract on an three year basis. Should the tenant so require, the aforementioned service providers may be called upon to effect maintenance the terms and conditions of which to be negotiated between the contracting parties. Alterations, additions and/or changes to the premises by the tenant Tenants are to note that any envisaged alterations or additions to the premises are subject to review, approval and conditions set by the IDZ. Failure to comply with the above may result in the removal of the alteration/addition, and the consequential remedial works, being undertaken by the IDZ on behalf of and to the account of the tenant.
Maintenance Obligation.Cont Required documents for connection of Utility Services Utility Service Rule Sewerage, Water and Electricity (Annexure A) This document define the terms and condition of supplied service. Applicable connection cost and service charges. Right of Admittance to Inspect, Test and/or do Maintenance Work. Non-liability of the IDZ OPERATOR. Consequences of tampering with connected services equipment. Protocol to how to address matters around defective apparatus and meters. Memorandum of Agreement MOA Part 1 This document cover connection of basic services required by the IDZ enterprise (sewerage, water and electricity). Before such service are made available to the IDZ Enterprise it is very important that this document is completed and signed by the Authorized IDZ Enterprise. IDZ Operator will be responsible for the calculation of connection cost and advice the IDZ Enterprise of the same. Bulk supply capacity and supply voltage required with various type of tariff, preferred by the IDZ Enterprise.
Required documents for connection of Services Cont A detailed IDZ ENTERPRISE Load Forecasts for application above 1000 kVA will be required for review and the minimum monthly demand charge will be based on 1000KVA. In the case of private development, the location of the Bulk Electricity Connection will be on the erf boundary. Where ELIDZ developments are concerned, the supply is brought to the main Distribution Board located within the building.
Fault Reporting Fault Reporting All faults which are the responsibility of the ELIDZ can be reported in the first instance via the ELIDZ Call Centre: Telephone: 0873730830 Email: servicedesk@elidz.co.za After hours emergencies: General: Electrical: Security: Mr Vuyolwethu Jako 079 516 9156 Mr Thato Sehau - 066 473 9179 Control Room 087 373 0902 or 079 085 3008
Safety, Security, Health and Environment Disaster Management Access control: Direct employees Visitors Public transport Terminated employment Perimeter monitoring Compliance to zone rules: Speeding, housekeeping, etc. Activity SHE risk monitoring (HIRA) Environmental Monitoring Air, Water, Effluent 28
Other Service Offerings Service Desk Access Control Canteen Clinic Landscaping Grass Cutting Alien Vegetation Road and Stormwater Sewer Network Roadway Lighting Postal Service Labour Management 30
Required Reporting from Tenants Job Statistics Participation in Annual Survey 31
Finance and Invoicing Source of invoicing and service types The invoicing of customers is governed by the agreements signed with the ELIDZ e.g. o Lease agreement, o MOA part 1 and/or 2 Typically a customer, based on agreements signed will be billed for: o rentals, o municipal type services, o ICT services and o estate levies. 33
Finance and invoicing Timing of invoicing Rentals o Rentals are payable in advance i.e. before the start of the month. o ELIDZ generates and invoices the tenants by the 20th of each month for the following month s rentals. o The first month s invoice includes the required deposit/s Municipal and ICT services o These services are mostly usage based and are payable in arrears o An invoice is sent by the 25th of each month Interest is levied at prime +2 for all overdue accounts. 34
Finance and invoicing Debtors collection procedures o All invoices for services except rentals are due within 30 days of invoice date. Rentals are due on the 1st of each month o The following table highlights steps in the process to collect overdue debt: Step Action Business days after account due Telephonic communication (Voice or SMS) to recover outstanding amount Demand immediate Payment. If payment is not received in 10 days after the letter of demand, institute step 3. Meet with investor to assist to identify issues and possible solutions If process 3 does not yield positive results issue warning letter to restrict services Restriction of services 5th day 1 10th day 2 20th day 3 25th day 4 35th day 5 40th day 6 Notice of impending legal action. Depending on circumstances of each case 7 Institute legal action (collection) 35
Finance and invoicing Key contacts Name: Oyena Mininye Email: oyena@elidz.co.za Tel: 087 373 0742 36
Services Strategy Offer ICT Services with a minimum availability of 98 % Offer customizable local services at a competitive rate Maintain the following certification: Information Security Management International Standards Organization 27001:2013 Quality Management International Standards Organization 9001:2015 Proposed future certification: Cloud Security International Standards Organization 270017/18 Always On Data Centre Facility Primary Data Centre Tier 3 (Uptime Institute) 38
Infrastructure Highlights World class primary data centre High availability fibre ring within the zone High availability network, telephony, internet, voice, server and data storage infrastructure Successfully simulated a full ICT Disaster Recovery scenario over the past two years Only Government Parastatal in the region with this level of infrastructure 39
Service Offerings Telephony as a Service Internet as a Service Fibre as a Service Data Centre Rack Hosting Disaster Recovery as a Service (Veeam) Backup as a Service (Veeam) Cloud Services Bare Infrastructure as a Service Operating System Infrastructure as a Service Business Continuity 40
Rationale Enhance Competitiveness through Productivity and Innovation Offer value added services to the ELIDZ tenants and regional industry players which will ensure they meet market required standards Span new ideas which create new products which will eventually locate in the Zone to manufacture new products. (Incubator) 42
Value Offering Strengthen the innovation base of the region with research facilities and centres of excellence which would service the ELIDZ tenants as well as the region as a whole; Renewable Energy Centre. Design Centre Attract business investment to the region through offering laboratory and other services; ELIDZ Water Testing laboratory SANAS Accredited Focus on blue drop and green drop (support local industry, municipalities) Have increased scope to include food and soil testing Incubation facilities (2 in ICT and a Chemical incubator). Cortex Hub ,ECITI, Chemin Open Innovation Platform Prototype Development 43
Support to Industry Industry Sectors Skills & Enterprise Development Needs in line with relevant SETA targets and Provincial goals respectively; Artisans Apprenticeships Electrical and Millwright, Technical workforce (Automotive, ICT & Renewable Energy Sectors) Electrical Engineering Learnerships Technical workforce Automotive MBSA and 1st & 2nd Tier suppliers Automotive Component Manufacturing Learnership NQF2. Incubation - Entrepreneurship Development Renewable Energy products Installations, support and related Support Non-Technical Soft Skills. 44
