Make good obligations are one of the most misunderstood clauses in commercial leasing — and getting them wrong in either direction costs money. Over-restore and you've paid for work you didn't need to do. Under-restore and you're exposed to a landlord claim after you've already moved out.
What a make good clause typically requires
Most commercial leases require the tenant to return the premises to its "base building condition" at the end of the lease — meaning fitout elements installed by the tenant (partitions, joinery, signage, data cabling) are generally required to be removed, with the space reinstated to a specified standard. The exact definition of "base building condition" varies significantly between leases, which is exactly why the lease document itself — not a generic assumption — needs to drive the scope.
Common tenant misconceptions
Over-restoring. Some tenants assume make good means stripping the tenancy back further than the lease actually requires — removing elements that were part of the base building handover, or repainting surfaces that don't need it. This wastes budget on work the lease doesn't obligate you to do.
Under-restoring. Others assume a general clean and patch-up is sufficient, without checking the lease's specific requirements around partition removal, service reinstatement or floor coverings — leaving them exposed to a landlord claim for the difference after handover.
How to read your lease's make good clause
The make good clause should be read alongside the original condition report or schedule of condition from when the lease began, if one exists. This comparison — current fitout vs. documented base condition — is what actually defines the scope, not a generic industry checklist.
Scoping against the actual lease document
The only reliable way to price and plan make good works is to scope them against your specific lease document, not a standard restoration checklist. This protects you from both over-delivering (and over-paying) and under-delivering (and facing a claim).
Working with landlords and agents before starting
Where possible, agree the make good scope in writing with your landlord or their agent before work begins. This avoids disputes at final inspection and gives both parties a clear, documented standard to assess the completed work against.
If you're approaching lease end and need your make good obligations scoped properly against your actual lease, our maintenance & make goods team can review your lease and give you an accurate, fixed-price scope.
Planning a maintenance & make goods project in Sydney?
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