What Businesses Should Know About Make Good Works Before the End of a Lease

For many businesses, the focus during a commercial tenancy is on day-to-day operations, growth, and keeping customers happy. The end of a lease can feel like something far off in the distance.

Then suddenly, the lease expiry approaches and the conversation around “make good” begins.

It is one of the most commonly misunderstood parts of commercial leasing, and it can quickly become stressful if businesses are unprepared.

Whether relocating, downsizing, upgrading premises, or simply ending a tenancy, understanding make good obligations early can save time, money, and unnecessary complications.

What Are Make Good Works?

Make good works refer to the process of returning a commercial tenancy to the condition outlined in the lease agreement.

Depending on the terms of the lease, this can involve:

• Removing fitout elements

• Demolishing internal partitions

• Disconnecting services

• Removing signage

• Repairing walls, ceilings, and flooring

• Repainting surfaces

• Restoring the tenancy to a base-build condition

• Cleaning and preparing the space for handover

Every lease is different, which means the required scope of work can vary significantly from one tenancy to another.

Some spaces may only need minor repairs and cosmetic work. Others may require a full strip-out and reinstatement.

Why Businesses Often Leave It Too Late

A common issue with make good projects is timing.

Many tenants do not properly review their obligations until only weeks before handover. By that stage, there is often limited time to organise contractors, approvals, waste removal, building access, and trades.

Rushed projects can create unnecessary pressure and increase the risk of delays.

Starting the process early allows businesses to:

• Review lease requirements properly

• Assess the condition of the tenancy

• Understand likely project scope

• Plan relocation timelines

• Coordinate trades and access requirements

• Reduce disruption to business operations

Early planning also provides a better opportunity to identify practical ways to minimise unnecessary work where possible.

Understanding Lease Obligations

The most important step in any make good project is reviewing the lease documentation carefully.

Some leases require tenants to return the tenancy exactly as it was originally handed over. Others allow certain improvements or existing fitout items to remain.

Areas that commonly create confusion include:

Existing Fitout Items

Not every installed item automatically needs to be removed.

Depending on the lease terms and landlord agreements, some existing fitout elements may be permitted to stay if they benefit the incoming tenant.

This can sometimes reduce demolition and reinstatement requirements.

Services and Electrical Works

Electrical, data, plumbing, and mechanical services often need to be safely disconnected or modified during a make good.

This work usually needs to comply with building management requirements and relevant regulations.

Damage and Repairs

General wear and tear is treated differently from damage.

Items such as damaged walls, broken fixtures, flooring issues, or unauthorised modifications may need rectification before handover.

The Importance of Site Inspections

A physical inspection of the tenancy is one of the best ways to understand the actual condition of the space and identify potential issues early.

Older fitouts can sometimes uncover hidden problems once demolition begins, including:

• Damaged wall framing

• Unused services and cabling

• Ceiling damage

• Non-compliant alterations

• Flooring issues beneath existing finishes

Identifying these conditions early helps businesses avoid surprises late in the project.

Planning Around Building Requirements

Commercial buildings often have strict procedures around after-hours access, waste removal, lift bookings, noise restrictions, and contractor inductions.

This is particularly important in:

• Shopping centres

• High-rise office buildings

• Medical precincts

• Mixed-use developments

Coordinating with building management early helps avoid delays and scheduling conflicts during the make good process.

Minimising Business Disruption

For businesses still operating during the final stages of a lease, minimising disruption is often a priority.

Careful staging and planning can help reduce downtime during relocation or closure.

In some cases, works can be completed progressively rather than all at once.

This becomes especially important for businesses managing:

• Staff transitions

• Equipment relocation

• Inventory management

• Client appointments

• Operational shutdown periods

A structured approach helps businesses maintain control during what can otherwise become a chaotic period.

Sustainability and Waste Considerations

Modern make good projects are increasingly focusing on sustainable waste management and material recycling.

Rather than simply disposing of everything during demolition, some materials and fixtures may be suitable for reuse, recycling, or repurposing.

This can include:

• Joinery and shelving

• Furniture

• Ceiling tiles

• Metal framing

• Electrical components

• Flooring materials

Reducing unnecessary landfill waste is becoming an important consideration across commercial construction and fitout projects.

Common Mistakes Businesses Make

There are several issues that regularly cause problems during make good projects.

Waiting Until the Last Minute

Late planning usually creates unnecessary stress and limits available options.

Assuming All Leases Are the Same

Lease obligations vary widely. What applied in one tenancy may be completely different in another.

Underestimating Building Rules

Building management procedures can heavily affect scheduling, access, and contractor coordination.

Failing to Document Existing Conditions

Condition reports and photos from the start of a lease can be extremely important when determining responsibilities at handover.

Why Professional Coordination Matters

Make good projects often involve multiple moving parts within tight timeframes.

Demolition, waste management, repairs, trades, compliance requirements, and final cleaning all need to be coordinated efficiently.

Having an experienced team managing the process can help streamline communication, reduce delays, and ensure the tenancy is handed back in line with lease obligations.

More importantly, it allows businesses to stay focused on their relocation or ongoing operations while the project is managed properly.

Final Thoughts

The end of a commercial lease is not simply about handing back keys.

Make good obligations can involve significant planning, coordination, and construction work depending on the tenancy and lease conditions.

Businesses that start early, understand their obligations, and plan properly are generally in a far better position to avoid unnecessary pressure and unexpected issues.

Like any commercial project, preparation makes a major difference.

A well-managed make good process helps ensure a smoother handover, minimises disruption, and allows businesses to transition into their next stage with fewer complications.