What the Fit-out Budget Covers

An office fit-out budget generally spans several parts: base works such as partitions, ceilings and flooring; electrical and air-conditioning services; fire safety and escape provisions; network and telephone cabling; and furniture and finishes. It is also wise to set aside design fees, professional consultant costs and a contingency reserve for surprises during construction. Set an overall cap based on floor area and use, then allocate it across items.

Approvals and Submissions

Most structural work, or work touching fire and building services, needs approval. Common steps include:

  • Landlord or management approval: submitting fit-out drawings to confirm compliance with building rules and no impact on shared facilities.
  • Statutory submissions: where partitions, fire services or building services are altered, an authorised person or registered contractor may need to handle submissions and inspections.
  • Construction time and protection rules: buildings usually set working hours, lift usage and measures to protect common areas.

Approvals take time, so allow enough of the rent-free period to handle them and avoid delaying your opening.

Construction Tips

During works, agree a clear schedule and payment stages with the contractor, and keep drawings, quotations and change records. Arrange regular inspections to confirm that concealed works such as electrical, fire and network services meet requirements, and run an overall check before handover to catch issues early.

Reinstatement Obligations

Leases usually spell out the tenant's reinstatement duty at the end of the term, meaning the unit must be returned to its original condition, with added partitions and fit-out removed and furniture cleared, to a vacant handover standard. Some leases may allow certain changes to remain, depending on the landlord.

When moving in, photograph or document the original condition and keep the reinstatement clause details, so you have evidence at lease end and fewer disputes.

Common Pitfalls

Frequent problems include underestimating reinstatement costs, overlooking the time needed for approvals, and failing to keep a contingency. Factor reinstatement into total cost at the signing and planning stage, rather than discovering extra expenses only when you leave.