A Category A fitout is the basic infrastructure provided by a landlord to make a space ready to lease. A Category B fitout is the custom tenant installation that adds the specific partitions, furniture, and branding required for a business to operate.
Misunderstanding the difference between these two categories can throw your entire project budget out completely.
What a Category A fitout provides
Landlords install Category A fitouts to get a space ready for tenants. This basic infrastructure includes suspended ceilings, raised floors, toilet facilities, basic lighting, and air conditioning. While you can move into a Cat A space, it is bare bones and lacks the specific layout required for business operations.
What a Category B fitout covers
Category B is the tenant fitout that adds business personality and functionality to the space. This stage includes the installation of glass partitions, branded reception areas, and full IT infrastructure. It also covers custom joinery, breakout zones, and collaborative spaces which make the office suitable for your specific team.
How fitout types impact your budget
Category B fitouts always cost more than Category A. The gap between these two levels can be tens of thousands of dollars, particularly in larger offices. Local labour markets and contractor pricing in different cities also cause these costs to vary.
The difference between base build and warm shell
A base build is essentially a concrete shell where you start from scratch. A warm shell is a step up with basic services like power and air conditioning already connected. A project that starts from a warm shell is generally cheaper than a full base build commercial office fitout.
Factors that drive up construction costs
Floor area is the primary starting point for any budget as most contractors quote by the square metre. An awkward or narrow floor plate can waste materials and increase costs compared to a regular rectangular space. Older buildings often require more work to meet current building codes, which adds to the total spend.
The impact of strip-outs and demolition
If you occupy a space that was previously fitted out, you may need to perform a strip-out. Demolition of an old fitout costs money and can reveal unexpected structural issues. These works require engineers and permits, which you must budget for as a contingency.
Defining your project requirements
Progressive Corporate’s project team can help you determine if you need a simple open plan setup or a more complex mid range fitout. Clarifying your headcount and required room types early prevents budget blowouts during the documentation phase.
Frequently asked questions
Is a warm shell the same as a Cat A fitout?
A warm shell has basic services connected but is not necessarily a full Category A fitout. It is a starting point that requires further construction to become a working office.
Does a Cat B fitout include furniture?
Yes, Category B includes the furniture and custom joinery needed for your business. This includes workstations, reception desks, and collaborative furniture.
Can you reconfigure a Cat B fitout later?
Reconfiguring the layout depends on the materials used. Open plan setups with budget workstations are typically easier and cheaper to reconfigure as your team grows or shrinks.
Questions to ask your fitout company before you sign
- What specific services are already included in the base build?
- Are there heritage restrictions on the building that limit partition or service changes?
- Does the current condition of the building require a full strip-out before the Cat B works begin?