At Makegoods.com.au, we know through experience that the make good provision is one of the most overlooked parts of a commercial lease.
Tenants often focus on rent, incentives and the fitout period, while the make good clause sits quietly in the contract until the very end of the lease. Unfortunately, this is the moment when it becomes most expensive. Failing to understand your end of lease obligations can lead to unexpected costs, disputes with the landlord and delays in vacating the space.
At Makegoods.com.au, our team helps tenants navigate these obligations with confidence. We specialise in office defits and end of lease restorations, and we know precisely how make good details work in real commercial environments. We also know how to protect your bond, because we return commercial spaces to their original condition every single time.
Book a meeting here, or read on to find out more about the questions you need to ask before you sign your lease.
Understanding your make good provision is critical
A make good provision is the clause within your lease that sets out your obligations at the end of the term. It may require you to remove your fitout, restore the space to its original condition or complete specific reinstatement works. The challenge for tenants is that these requirements often have broad wording and can be interpreted differently by each party. This is why understanding the make good clause at the start of the lease is vital.
Commercial landlords use make good points to ensure the property is returned in a leasable state. This can include removing partitions, replacing floor coverings, repainting walls, reinstating building services or repairing minor damage. In some cases the make good provision can require a complete defit of all tenant-installed elements. Without a clear understanding of your obligations at the start, you may commit to a tenancy that is significantly more expensive to exit than you expect.
At Makegoods.com.au, we advise tenants to review every make good detail early in the negotiation process. This allows you to push back on unfair obligations and negotiate more favourable terms before signing the lease.
Key questions every tenant should ask before signing a commercial lease
Asking the right make good questions before signing your lease will give you clarity about the true cost of occupying the space. The following questions will help you assess your obligations and negotiate fairer outcomes.
What exactly are my make good obligations
This is the first and most important question. Some leases require a full strip out that returns the premises to a bare shell, while others only ask for reasonable wear and tear repairs. Some landlords include detailed schedules of what must be removed while others rely on broad or vague wording.
You must ask the landlord or agent to clearly explain your obligations. Do not rely on assumptions or general industry practice because make good clauses can vary significantly. A detailed written explanation will protect you from disputes later.
How is the original condition defined or documented
Many disputes arise because tenants and landlords have different recollections of what the property looked like on day one. Without evidence, the landlord’s interpretation usually prevails.
You should ensure that the original condition is recorded in writing, with photos or a schedule of condition attached to the lease. If the landlord does not have one, request that a condition report be completed before you take possession. This simple step can save thousands at lease expiry.
Will I be required to remove my fitout, services or cabling
Fitout removal is often the most expensive part of a make good provision. Removing office partitions, workstations, flooring, electrical cabling, data cabling or plumbing can involve multiple trades and careful planning. Some leases require a complete strip out while others allow certain elements to remain.
Ask the landlord exactly what needs to be removed. If you plan to invest heavily in your fitout, consider negotiating a clause that allows the fitout to remain or that limits reinstatement to specific areas. Understanding this upfront will prevent major surprises at the end of your lease.
Can the landlord require a cash settlement instead of physical make good works
Some landlords prefer to take a cash settlement rather than allow tenants to complete the make good works themselves. This can be convenient but may also be more expensive, especially if the landlord’s preferred contractors charge premium rates.
You should ask whether cash settlements are allowed or required and whether the landlord will provide quotes in advance. If possible, negotiate the right to complete the works yourself using qualified contractors. At Makegoods.com.au, we often save tenants significant money compared to landlord quotes.
Are make good costs capped or negotiable upfront
Many tenants do not realise that make good costs can be negotiated before signing the lease. Some landlords are open to capping the total cost of reinstatement or agreeing to a specific make good fee. Others may agree to limit obligations to a reasonable and proportional level.
Ask whether the landlord will consider a cap or negotiate specific exclusions. Clarifying this early can significantly reduce financial uncertainty.
Does the clause include reinstatement of building services
Some make good clauses require tenants to reinstate or upgrade building services such as electrical boards, air conditioning, fire systems or mechanical services. These works can be expensive and require specialist contractors.
Ask the landlord to specify which services you will be responsible for and whether their preferred contractors must be used. If these obligations seem too heavy, negotiate to have them removed or limited.
How much time will I have to complete the make good works at lease expiry
Many tenants underestimate how long make good works take. A full defit can involve electrical contractors, data removal, waste disposal, patching, painting and cleaning. If you only have a few days after your final trading day, your team may face a significant time pressure.
Ask for a clear timeframe and negotiate additional time if necessary. Some tenants arrange an early access period before the lease expiry for make good works. This avoids rushed handovers and reduces the risk of disputes.
Additional considerations to review
Beyond the core questions, there are several extra considerations that can influence your make good obligations. These include:
- Fitout approvals and permits
- Fire compliance requirements
- Shared tenancy responsibilities
- Bank guarantees and bond release requirements
- The landlord’s expectations for cleaning and presentation
- Preferred contractors and access restrictions.
Understanding these factors early will reduce risk and help you negotiate terms that support your business rather than restrict it.
Find out how Makegoods.com.au can help
The make good provision is one of the most important parts of your commercial lease because it determines your obligations at the end of the term. Asking the right make good questions now will protect your budget, reduce risk and ensure you are fully prepared for the future. At Makegoods, our team is ready to help.