41 C.F.R. Subpart C—Tenant Improvement Allowance
Title 41 - Public Contracts and Property Management
A tenant improvement (TI) allowance enables the customer agency to design, configure and build out space to support its program operations. It is based on local market construction costs and the specific bureau's historical use of space. (See also the definition at §102–85.35.) The customer agency pays for the amount of the tenant improvement allowance actually used. To pay for the installation of tenant improvements, the customer agency may spend an amount not to exceed the tenant allowance. The amount spent by the customer agency for TIs is amortized over a period of time specified in the OA, not to exceed the useful life of the improvements. This amortization payment is in addition to the shell rent and services. Amounts exceeding the TI allowance are paid in a one-time lump sum and are not amortized over the term of the occupancy. The agency certifies lump sum funds are available prior to GSA proceeding with the work. The GSA schedule of allowances for new assignments is adjusted annually for design and construction cost changes. As the need arises, GSA may adjust an agency or bureau's TI allowance. GSA may also adjust a TI allowance for a specific project, if conditions warrant. This decision is solely GSA's. In addition, the customer agency may waive any part or all of its customization allowance in the case of a new space assignment. In the case of backfill space (also known as relet space), the customer agency can also waive any part or all of the tenant general allowance, if the customer agency will use the existing tenant improvements, with or without modifications.
Title 41: Public Contracts and Property Management
PART 102–85—PRICING POLICY FOR OCCUPANCY IN GSA SPACE
Subpart C—Tenant Improvement Allowance
§ 102-85.90 What is a tenant improvement allowance?
§ 102-85.95 Who pays for the TI allowance?
§ 102-85.100 How does a customer agency pay for tenant improvements?
§ 102-85.105 How does an agency pay for customer alterations that exceed the TI allowance?
§ 102-85.110 Can the allowance amount be changed?
