The obligation to perform make good works is a standard component of nearly all commercial property leases in Australia. It dictates the condition in which a tenant must return the premises to the landlord upon lease expiry. While the legal principle remains the same, the practical execution of the works differ greatly between offices and industrial buildings.
These differences impact cost, complexity, safety, and project timelines. Therefore, understanding the nuances between industrial make good and office make good is the first, and most critical, step toward controlling costs and securing a clean handover. Attempting to apply the same project management approach to both types of property guarantees headaches, delays, and often, expensive landlord disputes.
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Fundamental differences in scope and scale
The most immediate distinction between the two types of make good works lies in the nature of the space itself. Industrial facilities, such as warehouses, factories, distribution centres, and workshops, are inherently focused on durability, heavy machinery, and large-scale operations. Office spaces, conversely, are built around personnel, technology, and detailed interior design.
For an industrial facility, the scope typically involves removing heavy-duty additions: large plant and equipment, specialised piping, drainage systems, and structural modifications like loading docks or mezzanines. The focus is on returning the massive structure to an empty, safe, and generally accessible shell.
In contrast, an office make good focuses on the meticulous removal of integrated, often layered, interior elements: demountable walls, complex data cabling, built-in joinery, and custom lighting. The scale of the demolition might be smaller, but the complexity of the defit process and the required finish quality are significantly higher.
Industrial facility make good: heavy lifting and compliance
The defining characteristic of an industrial make good is the sheer size and weight of the items that require removal and rectification. This is where specialist experience is non-negotiable.
The focus on make good strip out and heavy plant removal
An industrial make good almost always includes a substantial make good strip out. Tenants in these spaces frequently install large-scale equipment, known as plant, such as spray booths, heavy compressors, overhead cranes, or specialised ventilation systems. The removal of this heavy plant is a complex engineering task, not just a demolition job.
It requires careful dismantling, often involving heavy lifting equipment and temporary structural support. Crucially, the removal process must be planned to minimise damage to the surrounding building structure, particularly the roof, walls, and load-bearing columns.
Dealing with environmental and hazardous materials
Industrial facilities often involve the storage or use of chemicals, oils, or other contaminants. Therefore, the make good obligation extends beyond physical removal to include environmental remediation. The tenant may be required to prove that the facility is free from contamination, requiring soil testing, the safe removal of contaminated waste, and the decommissioning of specialised drainage or trade waste systems.
This compliance requirement adds layers of cost and time. Landlords will insist on stringent environmental certifications, and failure to provide these can result in the entire security deposit being withheld to cover future, unknown remediation costs.
Structural elements and concrete slab rectification
Industrial tenants frequently alter the floor slabs to support heavy machinery, or install specialised pits and trenches for maintenance or processing. The make good works here involve highly technical concrete rectification, including infilling pits and restoring the slab’s structural integrity and levelness. Repairing a damaged concrete floor to the landlord’s specifications is vastly different from replacing worn office carpet; it requires structural engineering sign-off and specialised concrete contractors.
Office space make good: detailed demolition and aesthetics
While the heavy lifting is the challenge in industrial work, the challenge in office space make good works is precision, integration, and a high expectation of finish quality.
The complexities of commercial defit and partitioning
An office lease typically requires a comprehensive commercial defit, often back to a base-building condition, sometimes known as a “white box.” This involves the detailed removal of all tenant-installed components. Partitions, whether plasterboard or glass, must be meticulously removed without damaging existing structural columns, fire services, or ceilings.
The removal of integrated technologies is another major headache. Modern offices feature complex networks of data cabling, access control systems, and audiovisual equipment woven into walls and ceilings. The commercial defit must not only remove these items but ensure that all corresponding base-building systems (like fire alarms and air conditioning controls) are fully reinstated and operational.
Managing integrated services (office strip out)
The office strip out is defined by its interaction with the base building’s mechanical and electrical services. For example, if a tenant installed additional air conditioning zones or lighting circuits, the make good works must ensure these connections are safely and legally decommissioned, and that the base building’s services are returned to their original, compliant state.
This is a key area for landlord disputes, as poor decommissioning can leave the building with non-compliant services, a significant risk the landlord will pass directly back to the tenant.
The high standards for finishes and aesthetics
The landlord’s expectation for an office make good is generally higher regarding aesthetics. Tenants must restore or replace elements like ceiling tiles, carpets, and paintwork to a professional, corporate standard, usually without ‘patching’ or noticeable repair marks. The finish must be seamless to ensure the premises are immediately attractive to a new tenant. This is a crucial difference from an industrial commercial strip out where safety and structural integrity take precedence over paint colour.
Common ground: essential first steps for any project
Despite their vast differences, both industrial make good and office make good projects share essential requirements that underpin success and cost control.
Understanding your lease: the ultimate authority on commercial make good
Before lifting a single tool, every tenant must meticulously review the lease document. The lease’s “yield up” or make good clause is the ultimate legal authority defining the scope of the commercial make good obligation. It specifies the required condition (e.g., bare shell, fair wear and tear excepted), the type of documentation required (e.g., environmental certificates, compliance sign-offs), and the critical handover timelines. Misinterpreting this clause is the most frequent cause of overspending.
The importance of a detailed scope and condition report
Whether dismantling a complex conveyor system or removing delicate glass partitions, successful make good works depend on comparing the current state to the required state. A professional makes good specialist prepares a detailed scope of works that addresses every line of the lease, ensuring no works are missed and, more importantly, no unnecessary works (or betterment) are performed. This scope, backed by a condition report from the lease start date, is the tenant’s most powerful tool for defending against inflated landlord claims.
Managing the process: from end of lease stripout to handover
Execution strategy must be tailored to the environment, acknowledging the unique challenges of each.
Key differences in project timelines and logistical planning
The logistics of an end of lease stripout are markedly different between the two types of property.
| Aspect | Industrial Make Good | Office Make Good |
| Access | Usually straightforward, focused on heavy equipment traffic and laydown area. | Complex, involving tight building management rules, lift bookings, after-hours work, and noise restrictions. |
| Safety | High risk, focused on structural integrity, large equipment operation, and hazardous materials handling. | Medium risk, focused on asbestos management, dust control, and safe electrical disconnection within a live building environment. |
| Timeline | Can be lengthy due to heavy demolition, structural work, and external approvals (e.g., council for structural changes). | Usually dictated by the tight lease expiry date, focused on fast, high-volume, precision stripping. |
Commercial strip out and the role of specialist contractors
A successful commercial strip out or defit relies on engaging the right contractors. For an industrial facility, this means heavy demolition contractors with experience in decommissioning complex plant and environmental remediation specialists. For an office, it means integrated services contractors who can safely isolate and decommission electrical, data, and mechanical systems without impacting other building tenants.
Attempting to manage these diverse specialist contractors without a dedicated project manager who understands both legal obligations and construction logistics is a recipe for error, delay, and financial penalty.
Ensure a clean exit with expert support from Makegoods.com.au
The complexity of make good works means they are rarely a straightforward internal project. Whether facing the immense structural challenges of a factory make good strip out or the delicate, detailed demolition of an office fit-out, the risk of non-compliance and subsequent penalty is high.
At Makegoods.com.au, our team specialises in navigating these differences. We provide the expertise needed to meticulously interpret your lease, establish a defensible scope of works, and manage the right team of specialist contractors for either industrial make good or office make good. We turn a vague contractual obligation into a precise, managed process.