A small tornado affected my client’s company office last year, causing minor structural damage at their office building. A few months later, they received a bill from the landlord for $30,000 for structural repairs.
This is an example of a pass through operating expense, which is common in commercial leases.
Luckily, before my client signed that lease, I had negotiated a change that limited how operating expenses were calculated and included audit rights for my client.
I recommended getting an audit done before paying the bill. After the audit, my client ended up paying only $2,000.
As a transactional lawyer, I add value by negotiating contract changes up front, rather than litigating them after the fact. That saves my clients a lot of money.