USA - IOWA Law and Practice Contributed by: David M Erickson, Robert J Douglas, Jr, Christopher S Talcott and Amy S Montgomery, Dentons Davis Brown
must make diligent inquiry as to the various stat - utes at issue. 6.22 Termination by a Third Party Generally, a lease may be terminated by a third party (ie, a person not a party to the lease) only in circumstances involving condemnation or emi - nent domain. In Iowa, the compensation due to a landlord or tenant is determined based upon their respective property interests. Damages for condemnation of a leasehold interest are gener - ally measured by the value of the remainder of the lease term in excess of the rent to be paid. Unlike valuation of an interest in fee simple, lost business profits may be taken into consideration in determining the value of a leasehold interest. 6.23 Remedies/Damages for Breach The Iowa Uniform Residential Landlord-Tenant Act imposes limitations on the nature of dam - ages that a landlord may claim, generally limit - ing recovery to actual damages and also sub - ject to the landlord’s duty to mitigate damages. Recovery of damages in the commercial leasing context is generally consistent with contract law principles, subject to the landlord’s duty to miti - gate damages. Security deposits in residential leases are tightly regulated by statute, whereas in the commercial context are only limited by agreement of the parties. Commercial leases are frequently secured by security deposits, which may be commingled with a landlord’s personal funds, and by personal guaranties. 7. Construction 7.1 Common Structures Used to Price Construction Projects There are myriad types of construction contracts used in Iowa. However, the most prevalent types of construction agreements in the residential
construction context are generally the cost-plus agreement, with or without a guaranteed maxi - mum price, time and materials agreement, and stipulated sum agreement (as well as combina - tions thereof). 7.2 Assigning Responsibility for the Design and Construction of a Project The most common project delivery methods are as follows. Design-Bid-Build/Traditional Method The owner contracts separately with a design professional, who handles all design responsi - bilities, and a general contractor, who handles all construction responsibilities. Design-Build Method The owner hires a single entity, termed the design-builder, to perform both design and con - struction responsibilities under a single contract with the owner. Construction Management Methods The owner separately contracts with a design professional to develop the design of the project and with a construction manager. The construction manager as adviser (CMa) method The construction manager contracts with an owner to act as its consultant/adviser in the pre-construction/design phases and to provide construction management services during the construction phases. Under this method, the owner holds the subcontracts and assumes the risk of delivery of the project regarding cost and schedule.
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