When your commercial lease ends, you will need to fulfil your make good provision.
Most of the time, the provision will determine whether you need a full or partial make good. However, on occasion, it will be up to you, as the tenant. This decision affects your budget, your relocation timeline, your ability to recover your bond and the handover relationship with your landlord.
For many tenants, the makegood clause is a point of confusion, especially when lease agreements describe obligations in broad terms. At Makegoods.com.au, we specialise in office defits and commercial strip outs, and we help tenants navigate these obligations with confidence so they can move out smoothly and without unnecessary cost.
A make good involves meeting the specific return conditions in your lease and ensuring the space is handed back in the required condition. When done correctly, it protects your bond, speeds up the handover process and reduces the risk of disputes. When handled poorly, it leads to delays, additional landlord claims and significant financial impact.
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What tenants need to know about office make good provisions
A make good clause outlines how a tenancy must be returned at the end of a lease. Every lease varies, but most office and commercial agreements fall into the category of requiring either a full make good or a partial commercial make good. Understanding what your lease requires is essential for controlling costs and planning your relocation.
Most make good clauses include requirements relating to:
- The removal of tenant-installed fixtures and fittings
- Cleaning the premises to an agreed standard
- Repairing any damage caused during occupation
- Removing or reinstating partitions, signage, cabling or specialised installations
- Returning the space to its original layout or condition.
Many tenants assume the landlord will take a flexible approach. In reality, landlords are becoming more diligent. They want a clean, functional and compliant space that can be re-leased quickly.
When you understand your obligations early (with the assistance of a make good expert), you can make informed decisions about whether to pursue a full or partial make good, how to scope the works and when to schedule them to align with your move.
At Makegoods.com.au, we act as your advocate throughout this process. We review your lease, inspect the space and clearly outline what level of make good applies so you know exactly what needs to be done and what it will cost. Transparency is everything during this process.
What determines a full or partial strip out?
A full or partial strip out is determined by the wording in the lease and the condition of the space at the start of your tenancy.
Leasing agents and landlords often use terms like base building condition, original condition or returning the premises as provided. The level of detail in the original lease schedule and the handover report will significantly influence whether a tenant is responsible for a full strip out or a more targeted make good.
A full strip out usually applies when the tenant installed extensive fitout elements such as offices, meeting rooms, kitchens, breakout spaces or specialised cabling. A full strip out involves removing all these elements and often includes:
- Dismantling partitions and structural fitout
- Removing floor coverings, ceiling tiles or grid alterations
- Disconnecting and removing supplementary air conditioning
- Removing custom joinery or built-in furniture
- Making services safe for handover
- Preparing the shell for landlord works.
A partial strip out applies when some elements of the fitout can remain or when the landlord accepts certain items as beneficial for the next tenant. A partial commercial make good may include:
- Removing only specified fixtures
- Repainting high-traffic areas
- Repairing walls and reinstating damaged surfaces
- Cleaning, patching and minor reinstatement
- Retaining agreed furniture or partitions.
The difference between the two often comes down to negotiation. At Makegoods.com.au, our specialists can help negotiate more favourable terms with your landlord, particularly if elements of your fitout add value to the property. In many cases, this reduces costs significantly compared with a strict lease interpretation.
Comparing works involved with partial vs full make good obligations
A full make good is the most comprehensive end-of-lease requirement. It takes the space back to its original state, often referred to as base building condition. This involves:
- Removing the entire existing tenant fitout
- Stripping out all floor coverings and returning the slab to bare condition
- Removing all joinery, partitions, wall panelling and supplementary services
- Restoring ceiling grids and lighting layouts
- Removing or making safe any cabling and electrical work
- Completing patching, repairs and restoration across all surfaces
- Providing detailed cleaning ready for landlord inspection.
A full or partial make good is less extensive, because only targeted works are required. These obligations may include works such as:
- Removing selected partitions or fittings
- Repainting high impact areas
- Restoring only sections of carpet or flooring
- Cleaning, patching and repairing localised damage
- Addressing landlord specified items only.
The works vary, but the objective remains the same; returning the space to a condition that satisfies your lease. We streamline this process by providing a complete assessment, scoping every item clearly and managing the works from start to finish. This prevents ambiguity, which is one of the biggest causes of disputes during end-of-lease handovers.
The cost implications of different make good approaches
The choice between a full or partial make good has a significant impact on cost. A full make good is usually more expensive because it involves more labour, more trades and more materials. A partial make good gives tenants more cost control, but only when the scope has been properly defined.
Key cost drivers include:
- The extent of the tenant-installed fitout.
More fitout elements mean more work is required to remove them. A modern office with glass partitions, meeting rooms, raised floors or specialist technology infrastructure will usually require more extensive works.
- The condition of the space.
Wear and tear can be costly, especially if the landlord expects the premises to look as-new. Surfaces that have been heavily used often require repainting, patching or replacement.
- Services and compliance requirements.
Electrical disconnections, fire services, plumbing and HVAC reinstatement can add considerable cost. These works require licensed trades and, in some cases, compliance certification.
- Timeframes.
Urgent make goods often cost more, because they require larger crews and after hours work, especially in commercial towers.
- Negotiation with the landlord.
This is the area where we help tenants save the most. Many landlords will accept a partial make good if it assists in re-leasing the space quickly. When we negotiate on your behalf, we look for opportunities to reduce your scope and therefore reduce cost.
A specialist contractor is essential for avoiding surprises. At Makegoods.com.au, we provide fixed quotes and full transparency so you know exactly what your obligations will cost before you begin.
Make good impacts on relocation timelines
A make good project sits on the critical path of your relocation timeline. If you are moving to a new premises, you must coordinate the make good with your office relocation schedule. This is especially important for tenants completing an interstate move or making a tight transition between leases.
Key timeline impacts include:
- The need for early scoping and landlord approvals
- Coordinating the strip out around business operations
- Integrating the works with IT decommissioning
- Managing noisy or disruptive works that may require after hours scheduling
- Aligning service disconnections with your commercial removalists or business movers
- Ensuring compliance inspections are completed before handover.
Delays in make good works often result in additional rent, outgoings or penalties if the space is not returned on time. When managing a full or partial strip out, our team builds a comprehensive project schedule to eliminate these risks. We work with your relocation team, your business removalists or your commercial removalists to keep everything aligned.
A well planned make good strategy ensures your business can exit the premises smoothly and take possession of your new space without disruption. This is especially important when relocating your business interstate, as interstate office relocation projects often have tighter delivery windows and more logistical dependencies.
How to streamline your make good project
The smoother your make good, the faster you can complete your relocation and recover your bond. Efficient planning, clear scoping and professional management are essential. The most effective way to streamline the process is to engage specialists who deliver make goods every day.
Key ways to streamline your project include:
- Start planning early.
Begin reviewing your lease at least six months before your departure. This gives you enough time to assess the scope, negotiate with your landlord and schedule the works without rushing.
- Get a detailed site inspection.
A walk through helps identify hidden issues, previous tenant works and items that may require compliance checks. We provide a comprehensive inspection and report that outlines every requirement clearly.
- Avoid relying on vague lease wording.
Terms like fair wear and tear or original condition often cause disputes. We clarify these terms and help you negotiate a practical and cost effective scope.
- Use a single contractor for all works.
Make goods involve multiple trades; demolition, electrical, plumbing, flooring, painting, waste management and cleaning. Using one contractor ensures efficiency and reduces the risk of delays.
- Integrate the works with your relocation schedule.
Your make good should sit within your office relocation plan. When both processes align, your business avoids unnecessary downtime.
- Prioritise safety and compliance.
Safety sign off and services disconnection are essential for handover. We ensure all required certification is ready to present to your landlord.
When we manage a full or partial make good, we take care of everything. This includes scoping, quoting, project management, strip out, repairs, reinstatement, cleaning and handover. Our clients appreciate that they only need one point of contact and that every aspect of the project is delivered efficiently and professionally.
Speak to a commercial make good expert today
Whether you require a full make good or a more targeted approach, the key to a stress free exit is engaging a team that specialises in make goods and office defits. At Makegoods.com.au, we handle the entire process for our clients and ensure the space is returned exactly as required by the lease. We also work to negotiate better outcomes wherever possible, which saves significant time and cost.