Agreements for lease with development obligations—tenant’s fit-out
Agreements for lease with development obligations—tenant’s fit-out

The following Property practice note provides comprehensive and up to date legal information covering:

  • Agreements for lease with development obligations—tenant’s fit-out
  • Plans, specifications, etc
  • Licence to alter
  • Developer carrying out fit-out works
  • Insurance
  • Developer’s contribution to fit-out costs

Plans, specifications, etc

In most cases, the tenant will apply its own bespoke fit-out to the developer’s finish condition in which the premises is delivered at practical completion by the building contractor.

Depending on the timing, nature and extent of the tenant’s fit-out works, the tenant may have to provide fit-out plans, specifications, a method statement and works programme to the developer for passing to the building contractor. This is to ensure that the fit-out works do not interfere with outstanding any developer’s works in respect of the premises, any retained building or elsewhere on the site.

In most cases this presents no problem because the tenant’s works are relatively minor, confined to the inside of the premises and are carried out when the premises (and any building containing it) is either practically complete or (if the tenant gains early access) is almost practically complete. So, where the tenant is taking a lease of whole of a stand-alone building which is well away from any other developer’s works, there will be relatively minimal provisions in this respect in the agreement for lease, and any included would usually relate to the need for co-operation between the building contractor and the tenant’s fit-out contractors whilst the latter are on site. However, if the tenant needs to install large items of plant, equipment or machinery (eg industrial refrigeration units or

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