The provided context does not contain specific tax depreciation schedules or accounting guidelines. It does outline the different fitout categories and cost drivers that influence the total capital expenditure for a project.
Accurate accounting for a commercial project requires a clear distinction between landlord provided works and tenant installations.
What is a Category A fitout?
A Category A fitout is the base build provided by the landlord to make a space leasable. It covers the basics including raised floors, suspended ceilings, basic lighting, air conditioning, and toilet facilities. These costs are generally not borne by the tenant.
What does a Category B fitout involve?
Category B fitouts are tenant installations that make the office functional and branded. This scope includes custom joinery, breakout zones, collaborative spaces, glass partitions, and full IT infrastructure. These installations always cost more than Category A works and represent the primary investment for the business.
What are the typical fitout cost ranges in Melbourne?
Costs vary based on the level of finish and layout. Budget open plan setups typically cost between $550 to $600 per square metre, while mid range options sit between $1,200 to $1,400 per square metre. High spec executive environments can cost $2,800 to $3,000 per square metre or more. These figures are based on real Melbourne projects and are subject to GST.
How to manage your fitout budget?
Bringing in a fitout specialist before signing a lease prevents committing to a space with old building services or compliance issues. We recommend holding back a 10 to 15 percent contingency buffer for unexpected surprises. Progressive Corporate provides a free design consultation to establish realistic costs before construction begins.
Frequently asked questions
What is the difference between an office renovation and a refurbishment?
A refurbishment updates finishes and fittings without structural change. A renovation involves changes to the layout, services, or structure.
How long does a medium office fitout take?
A medium office between 50 to 200 square metres typically takes 3 to 6 weeks. This timeline does not include the design and approval phase.
What is a turnkey fitout?
A turnkey fitout is a fully managed service covering design, furniture, partitions, and installation. The client receives a finished office ready for immediate occupation.
Questions to ask your fitout company before you sign
- Is the space currently a warm shell or a cold shell?
- What are the specific make good obligations at the end of the lease?
- Is there a VBA registered building practitioner overseeing the commercial construction?