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3 Reasons to Take Advice Before Consenting to Fitout Plans

Diana Reed • May 27, 2020
If you own a commercial building, then you work with prospective tenants to make sure that the space they take is suitable for them. If a new tenant wants to develop their space and fit it out to their specification, then you have to agree to any modifications.

If the tenant wants to make major changes, then they need you to provide formal owners' consent documentation. This becomes part of any planning applications they may have to submit.

However, this isn't just about allowing new tenants to make the changes they want; you also have to protect your own interests. It helps to retain a consultant who can give you professional owners' consent advice. What are the benefits to you?

1. Get an independent assessment

While some fitouts are straightforward, some are more complex. When you talk to a prospective tenant and their fitout project manager, their plans may sound fine on the face of it. However, things may not be as simple as you think.

If your tenant wants to make significant changes that go beyond changing the layout of the basic space, then their plan may have more impact than you realise. The fitout may affect the structure of your building, communal areas and your existing tenants.

If you hire a consultant to help you negotiate the planning process, the consent you ultimately give is more informed. Your consultant works in your interests — they ensure that you understand exactly what a fitout plan involves and its possible impact on all stakeholders in the property.

2. Keep all your tenants happy

While you want to encourage new tenants into your building, you also have to look out for the interests of the companies who currently pay you rent. They may worry about fitout changes that might affect them.

Problem is, you might not have the skills to identify how a new fitout will affect other people in the building. Problems won't necessarily show themselves until after the event. Also, people sometimes worry about negative impacts that won't actually happen.

If you retain a consultant to give you owners' consent advice, then they take the needs of other tenants into consideration during their assessment. You get an early heads-up of potential problems.

If necessary, you can get the new tenant to amend their plans. You can also reassure existing tenants that you have taken professional advice to protect their interests as well as your own.

3. Ensure compliance

Your tenants don't bear all the responsibility of making sure that a fitout is legally compliant. You're the owner of the building. You need to ensure that any modifications or changes meet relevant building or development standards.

During the fitout process, a tenant may have to make multiple applications to get approval for the works. They must obtain statutory compliance documentation at key stages during and after the job.

You need to make sure that this happens and that you get copies of all relevant documents. If you go through this process alone, then you rely on the tenant to meet their obligations and to provide supporting proof of compliance.

If you hire a consultant, they make this part of the process easier. They can check that the tenant or their representatives do the right things at the right time.

They also collate copies of compliance certificates for you at the end of the work. Ideally, you also want a set of drawings that outline the work as it is done and after completion. This is useful at the end of contracts if you have an agreement that the tenant will make good any modifications they made.

Plus, some consultants also offer project management services during the fitout process. For example, they could run regular checks to ensure that the work meets your specifications as well as safety standards.

To find out more about owners' consent services, contact Building & Project Services Pty Ltd. We will work with you to make sure that your future fitouts work in everyone's interests.
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