Tenant Questions : My Fit-Out

Introduction
The key to lower fit-out costs and maintaining quality is the transparent delineation and independence between your independent tenant advocate and the construction team including:

  • Architects / Designers
  • Services Engineers
  • Removalists
  • Building Contractors

Those companies offering “one-stop-shop” design and construction contracts may hold back the open market through limiting competition amongst architects, trades and contractors.

Q. How can TRS help me in the process?
As your personal independent project manager we will assist you in the selection of all design and construction parties, tender documentation and probity procedures and manage all works through to final completion of your new fit-out.

TRS understands how contractors’ overheads, margins and preliminaries are calculated and how to negotiate fair pricing in the interests of the tenant. We will ensure that your fit-out is delivered on-time and within your allocated budget.

Q. What are typical fit-out costs?
Fit-out costs depend on the quality of finishes and the density of your design in terms of an open plan versus enclosed plan environment – typically costs are:

  • Medium finish: $800.00/Sqm to 1,000.00/Sqm
  • Medium to High finish: $1,000.00/Sqm to $1,500.00/Sqm
  • High standard finish: $1,500.00/Sqm plus

Q. What influences the cost of my fit-out?
The cost of your fit-out will be influenced by the flowing key factors:

  • Time required to design and construct the fit-out
  • Number of enclosed offices as opposed to open plan workstation style environments
  • Logistics with the proposed building
  • Whether or not furniture is to be purchased new or re-used
  • Specialist needs over and above typical corporate environments such as labs, test rooms, training and conference rooms
  • Data & communications upgrade or re-use of existing equipment
  • Furniture selection and manufacturer
  • Impact of Business peak and off-peak times
  • Proposed new building
  • Decision makers within your organization
  • Desirables

Q. How long should the fit-out take to build?
Fit-out programs vary according to the type of fit-out required, ratio of open to enclosed plan environments and the technical requirements – the programs stated below are indicative only and cannot be deemed as identical to your current or future environment.

  • 500Sqm to 1,000Sqm
    Design : 6 to 8 weeks
    Approval : 4 to 6 weeks (depending on local authority)
    Construction : 6 to 10 weeks (depending on finish)
    Relocation : 2 to 3 days
  • 1,000Sqm to 2,000Sqm
    Design : 8 to 9 weeks
    Approval : 4 to 6 weeks (depending on local authority)
    Construction : 11 to 12 weeks (depending on finish)
    Relocation : 2 to 3 days
  • 2,000Sqm to 3,000Sqm
    Design : 10 to 12 weeks
    Approval : 4 to 6 weeks (depending on local authority)
    Construction : 14 to 16 weeks (depending on finish)
    Relocation : 2 to 3 days
  • 3,000Sqm to 10,000Sqm
    Design : 14 to 16 weeks
    Approval : 4 to 6 weeks (depending on local authority)
    Construction : 16 to 20 weeks (depending on finish)
    Relocation : 3 to 5 days

The indicative time frames don’t take into account statute and public holidays.

Q. What are Lead Time items?
Lead time items include loose furniture, chairs, desking systems and related items which depending on the scale of the fit-out and quality of finishes may take considerable time to prepare and deliver to maintain your fit-out program.

All fit-out programs should take in to account Short and Long lead times for such items thereby ensuring that the items are delivered on-time during the course of the project to prevent any delays to your project.

On average locally manufactured chairs and furniture may take approximately 6 to 8 weeks whilst foreign imports may take an additional 4 weeks.

Q. What are Progress Claims?
For medium to large scale projects fit-out contractors complete the work in phases and they claim for the progress that has been completed at the end of each phase – this is a progress claim.

TRS will ensure that each progress claim meets with the value of work completed at each phase prior to your approval.

Q. What are Variations and how do I minimise them?
There are two (2) key types of variations:

  • Client Driven
    This is when the tenant opts for a change to any component of the fit-out after the contract sum has been approved and the project has commenced.
  • Non Client Driven
    This is when a change (unknown at the start of the project) is required to any component of the fit-out after the contract sum has been approved and the project has commenced. The change is essential to successfully complete the project.

Most non-client driven variations occur through lack of time applied to the initial design and engineering services components of the project.

Variations can be minimised or eliminated if the correct procedures and style of contract are adopted prior to commencing the design phase.

Overall non client driven variations should not exceed 1.00% of the total contract value.