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Commercial

Commercial fit-out estimate.

Commercial fit-outs involve different cost drivers than residential projects — landlord specifications, CDM regulations, out-of-hours working, and the distinction between Category A and B fit-outs all affect the bottom line.

Authored by Alexandr Vreme & Maksym Vasylkov
Published — Next review

Who this guide is for

This guide is for fit-out contractors, project managers, and tenants planning an office or retail fit-out. Whether you are taking on a Cat A shell or fitting out a Cat B space, understanding the landlord's requirements and commercial constraints is essential for an accurate estimate.

Information needed

Commercial fit-outs require different information than residential work:

  • Landlord's fit-out specification and works deed
  • Existing services capacity — does the supply need upgrading?
  • Category A vs Category B fit-out scope definition
  • Opening hours and access restrictions for the building
  • CDM 2015 principal contractor and designer requirements
  • Asbestos survey for existing premises
  • Building management's rules for contractors — permits, insurance, welfare

Cat A vs Cat B fit-outs

Understanding the distinction is critical:

Category A (landlord base build) typically includes raised floors, suspended ceilings, M&E distribution to floor level, toilets, and common areas. The landlord delivers a shell ready for a tenant to fit out.

Category B (tenant fit-out) includes partitioning, finishes, decoration, joinery, furniture, branding, AV equipment, IT cabling, and any bespoke fit-out to meet the tenant's operational needs.

Typical work breakdown

A Cat B fit-out estimate typically covers:

  • Demolition and alterations — strip-out of existing fit-out, make good
  • M&E distribution — power, data, lighting, HVAC drops to fit-out positions
  • Partitioning — stud walls, glazed screens, acoustic-rated partitions
  • Ceilings and floors — suspended ceiling tiles, raised access floor coverings
  • Decoration — painting, wallcoverings, feature walls
  • Joinery — reception desk, breakout seating, meeting room fitments
  • Cleaning — builder's clean, final clean, waste disposal

Commonly missed costs

Commercial fit-outs have several costs that residential estimators may not anticipate:

  • Out-of-hours working premiums — evenings or weekends at 1.5x–2x standard rates
  • Landlord's building management costs — service charge, permit fees, security
  • Builder's cleaning — often required to a higher standard than residential
  • Waste disposal licenses — commercial waste requires licensed carriers
  • FM requirements — facilities management handover documentation and training
  • Asbestos survey — legal requirement before any demolition or alteration
  • CDM fees — principal designer, principal contractor, health and safety file

Miniature worked example

A 1,000 sq/ft office Cat B fit-out in a serviced building:

Strip-out and alterations£3,000
Partitioning (stud walls, glazed screens)£8,000
M&E distribution (power, data, lighting, HVAC)£6,000
Ceiling and floor finishes£7,000
Decoration (painting, wallcoverings, feature walls)£4,000
Joinery (reception, breakout, meeting room)£5,000
Total£33,000

Excluding furniture, AV equipment, IT infrastructure, and professional fees.

Questions to ask

  • Is the fit-out Cat A or Cat B — what is the landlord providing versus the tenant?
  • What are the building's working hours and access restrictions for contractors?
  • Has a CDM principal designer been appointed for the project?
  • Has an asbestos survey been carried out before any demolition works?
  • What are the landlord's building management costs and permit fees?
  • Does the existing M&E capacity support the proposed fit-out load?

Related guides

See our new-build house estimate guide for residential new-build cost structures, or daywork and small works pricing for smaller commercial maintenance projects.