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Last edited 13 Nov 2013See full history

Fit out is a term used to describe the process of making interior spaces suitable foroccupation. It is often used in relation to office developments, where the base construction iscompleted by the developer, and the final fit out by the occupant. The occupant will generallybe leasing space as a tenant from the developer / landlord.

Depending on the degree of completion of the building, and the interior specification requiredby the occupant, fit outs can take a range of different forms:

Contents

1 Shell and core2 Category A fit-out3 Category B fit-out4 Turnkey developments

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Shell and core

Shell-and-core works will generally comprise the structure, cladding, base plant, completedcommon areas and external works. It will include fitted-out main reception, lobbies,staircases, toilets, lift shafts, basements, loading bays, car parking and so on.

Category A fit-out

Category A generally describes the level of fit out that tenant's own space is completed to bythe developer. There is no standard definition, but a category A fit out may include.

Raised floors and suspended ceilings.Distribution of mechanical and electrical services.Internal surface finishes.Blinds.

If the tenant has very complex fit out requirements, this may impact on the category A fit out.In this case, they may make a contribution to the costs of the category A fit out to ensurethat it meets their needs, and offset this against their own costs. This saves wasted time andmoney modifying the category A fit out.

Category B fit-out

Category B completes the fit out of the internal space to the tenants requirements. This mayinclude:

Final finishes and branding.Installation of offices.Installation of specialist facilities in meeting rooms, board rooms conference rooms and soon.Fitting out reception areas.Installation of specialist lighting.Installation of ICT equipment.Installation of audio visual equipment.

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Fit out of kitchen areas.Installation of furniture.

The developer may make ask the tenant to carry out some of their more sensitive category Aworks on their behalf during the category B fit out, when they may be less subject to damage.The developer will pay the tenant a sum equivalent to the cost of the works had they carriedthem out themselves.

Turnkey developments

A turnkey development provides the tenant with spaces that are fitted out by the developer sothat they are ready for use.

These categories do not have standard definitions, and so it is very important that contractdocumentation sets out precisely what work is to be carried out and by who, rather thanrelying on ambiguous short-hand terms.

An agreement to lease between landlord and tenant should clearly define:

What comprises the shell and core built by the developer, including space provision incommon areas for tenant equipment such as standby generators, extra chillers, oruninterrupted power supply plant.What constitutes category A fit out installed by the tenant but funded by thedeveloper/landlord.What tenant equipment is to be installed in common areas.

Category A capital allowances might also be a factor in agreement to lease negotiations.

A rent-free period may be provided by the landlord as a notional contribution to the tenants fitout. It not unusual for a tenant to start fitting out their areas before completion of the shell andcore works, although the rent-free period will be triggered by practical completion of the shelland core works.

The tenants fit out may involve rectifying problems in the developer's works. In order to meetthe fit-out timetable these may be funded by the tenant who may then make a claim torecover their costs.

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Capital allowances.Client commissioning.Defects liability period.First fix.Handover to client.Migration strategy.Occupation.Practical completion.Rent free period.Shell and core.Soft landings.