Photo by Eric Laignel.

Courtesy M Moser Associates

From Gutted
to Golden

Building a Modern
Office Space That Works

BY THE HONEST BUILDINGS TEAM

2014 HONEST BUILDINGS, INC.

233 Broadway, Suite 2705

New York, NY 10007
Phone: 212-292-3170
Email: info@honestbuildings.com
1

Table of
Contents
From Gutted to Golden: Building a Modern Office Space That Works.............................................................................1
Introduction....................................................................................................................................................................................................1
Overview.........................................................................................................................................................................................................2
About Honest Buildings............................................................................................................................................................................2
Before You Begin.........................................................................................................................................................................................2
Range of Tenant Improvements.............................................................................................................................................................3
Section 1: Getting Started.......................................................................................................................................................4
Select a Core Project Team..................................................................................................................................................................... 4
Assess Your Current Space..................................................................................................................................................................... 4
Identify Your Needs................................................................................................................................................................................... 4
Section 2: Selecting Your Space............................................................................................................................................ 5
Review Listings.............................................................................................................................................................................................5
Hire a Broker..................................................................................................................................................................................................5
Start Touring Spaces and Narrow Your Search............................................................................................................................... 6
Navigating the TI Negotiation Process.............................................................................................................................................. 6
Hire an Architect..........................................................................................................................................................................................7
Walkthroughs and Test Fits...........................................................................................................................................................7
Develop a Preliminary Budget and Scope...............................................................................................................................7
Examine Existing Conditions and Performing a Review of Basic Building Systems...............................................7
Paying for an Architect Pre-Lease........................................................................................................................................................7
Paying for an Architect Can Save you Money........................................................................................................................8
Section 3: Designing And Building Your Space................................................................................................................... 9
Hire an Architect (If You Havent Already)....................................................................................................................................... 9
Developing Plans.......................................................................................................................................................................................10
The Importance of Construction Documents.................................................................................................................................10
Gather Bids................................................................................................................................................................................................... 11
Finalize Your Budget................................................................................................................................................................................. 11
File Work Permits and Ensure Sign-Off From the Landlord..................................................................................................... 12
Construction................................................................................................................................................................................................ 12
Post Construction...................................................................................................................................................................................... 12
Move In.......................................................................................................................................................................................................... 12
Conclusion................................................................................................................................................................................13
Helpful Terms.........................................................................................................................................................................................................14
2014 HONEST BUILDINGS, INC.

From Gutted
to Golden

Building a Modern
Office Space That Works

Introduction

hen your company needs a

new office space, where do
you begin? How do you turn
an empty, gutted, or under-developed
shell into a living workplace?

2014 HONEST BUILDINGS, INC.

This process also known as tenant improvement

(TI) or a buildout can involve everything from
negotiations with your landlord down to architecture,
plumbing and wiring for electrical outlets.
In this guide, we will walk you through the tenant
improvement process, step by step, in plain language.
We hope it leaves you better prepared to create the
perfect office space for your thriving company!

Overview

About Honest Buildings

The amount of time, resources, planning, and

funding required for your office buildout depends on the current state of your space and
your ultimate goals for the new office. Are you
installing some new electrical outlets, or are
you building a multi-floor campus with conference rooms and kitchens? Each type of scope
will come with its own challenges and requirements. This guide focuses in particular on medium
to large buildouts (i.e. over 5,000 square feet)
of office space, but it will also touch on smaller,
less complicated development processes.
All time and cost estimates are conservative
and based on recent Honest Buildings data,
but we suggest that you begin planning as
soon as possible to avoid unexpected costs,
complications, or delays. Please note that
tenant improvement is always unique, and
this is only a general guide. If you run into
questions, dont hesitate to contact us.

Honest Buildings (HB) is the worlds leading Connection Engine for Real Estate Projects. From architects to
engineers, contractors to technology experts, HB helps
you find and meet the perfect people for your real
estate projects, fast. We enable the real estate community to make the smartest decisions, one project at
a time. With an innovative suite of products and more
than $200 million in deal flow to date, HB is changing the way real estate connections are forged. For
more information, visit www.honestbuildings.com.

Some spaces will come in the state left

by the last tenant. Depending on the
specific features of these spaces,
customizing your office can involve any
range of services. The most basic
renovation involves changing nothing
and simply moving into the space in its
existing state. The most advanced
renovation involves tearing out the
existing infrastructure and rebuilding
the space from scratch.

2014 HONEST BUILDINGS, INC.

Before You Begin

Its important to know the scope of your tenant improvement work, especially when dealing with building professionals, vendors, and internal stakeholders.
Below, weve charted several types of office space
development projects, from simple to complex.

Some spaces will come in building

standard state with plain white walls
and minimal infrastructure.
Customizing these spaces can
require adding light fixtures,
electrical sockets, and flooring. It
also requires designing the interior
and adding conference and office
spaces with partition walls if you
choose to do so.

Transforming a gutted space into a

workable office space requires
building walls, ceiling, and floors and
installing electrical outlets, HVAC
ducts, and plumbing for bathrooms.
It also involves constructing kitchen
and conference spaces.

Range of Tenant
Improvements
Simple*

Moderate

Complex

Existing Condition

Move-In Ready

Whiteboxed

Raw Space

Size

1,000 - 5,000 SF
6-30 employees

5,000 - 25,000 SF+

30 - 100 employees

25,000 SF+
100+ employees

Use profile

Basic. Layout of new

or existing furniture,
possible replacement
of flooring, IT and
wiring work to
create productive
workstations

More advanced
space planning, with
dedicated work
areas and focus
on optimizing the
space use. Private
bathrooms, possibly
multiple kitchens

Highly customized,
special features.
Includes things like
private offices or oneof-a-kind amenities

* Even the simplest of buildouts can require a large amount of work and will almost certainly require you to
engage a variety of professionals in order to make the space work for you.

2014 HONEST BUILDINGS, INC.

ASSESSING
YOUR NEEDS

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

Getting
Started

Select a Core Project Team

The first step in any buildout is designating a primary
decision-maker who has the authority to make critical
decisions, and a project manager who coordinates day-today logistics and communicates with outside professionals.
In small companies, the decision-maker and the
project manager are often the same person. Larger
companies tend to designate multiple team members
to these initiatives. In almost all cases, the CEO, COO,
or office manager takes a significant leadership role.
Companies may also hire an owners representative
who is an expert in construction projects to act as a
consultant and liaison. Owners representatives are hired
to conduct very complicated projects, and are less likely
to be involved in small or medium-sized buildouts.

Assess Your Current Space

In what ways is your current office space lacking? Employee feedback and design ideas for the
new office will be incredibly helpful! Be sure to
survey the leaders of each internal team to understand both their space requirements and their
growth plans. List the known issues thoroughly (e.g.
size constraints, location requirements, etc.).
Also observe how employees use the current
space. Where do they spend time, and which areas
are unused? What are the benefits and drawbacks
of your current layout? Finally, document which
teams or employees collaborate most often
and will need workstations near each other.

Identify Your Needs

Drawing on this assessment of your current of-

2014 HONEST BUILDINGS, INC.

fice space, determine the top priorities for your new

space. These are the required features which you
are not willing to compromise. For example, your
priorities might include improved productivity, increased collaboration, and efficient use of space.
In addition, determine your square footage
needs. As a general rule, office space workstations
occupy about 60 to 100 square feet per person,
and conference rooms require 25 to 30 square feet
per person of capacity. Corridors within the space
typically occupy 20-30% of total usable area. Open
group work or gathering areas should be sized to the
needs of your company. Dont forget to leave room
for growth, especially if your company is flourishing.

Hypothetical Office Size Chart

# employees

35

1,850 sqft

# conference
rooms

1 8-person
conference room
and 1 6-person
conference room

350 sqft

Corridors and
common space

25% overage

550 sqft

Space for future

growth

30% buffer

825 sqft

Total space
desired

3,575 sqft

When you have detailed the square footage

requirements and other priorities for your new
space, youre ready to take the next step. Keep your
documentation on-hand and track changes as you go!

ASSESSING
YOUR NEEDS

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

Selecting
Your Space

ow that youve identified your

needs, you can begin selecting a
new office space. We recommend
hiring both a commercial real estate
broker and an architect in this phase.
In the long run, these professionals can
save you time and money, and improve
your chances of finding a perfect space.
In this section, we will cover when to bring in
a broker and an architect, how to pay them, and
how both will help meet your needs while saving
money. Well also walk you through signing the
lease on your new space, and setting a preliminary
budget and timeline for your buildout.

submarket, real estate brokers can ensure that

youre paying a fair price for your space. Brokers
can also provide real-time market knowledge about
potential pitfalls faced by tenants like you. Generally
speaking, they can advise you on every key decision
youll make when choosing a new office space.
Commercial real estate brokers are paid a
commission by the landlord, meaning their services
come at no cost to you. However, because brokers
are only paid if you sign a lease, their incentive is to
ensure that you do so. A good broker will be your
trusted advisor, but its up to you as the tenant to
be sure that your needs are met and you are fully
comfortable with a space before signing a lease.
Typically, a real estate broker will provide a list of
spaces that meet your needs. You can choose which
properties to tour and then compare them to the
office priorities you established in Section One.

Review listings
To get a preliminary estimate of spaces you
like and how much they cost, you can use a resource like 42floors.com to search commercial
real estate listings in your area. This will give you
a rough sense of your rent expectations, and can
help you begin to evaluate different layouts.

Hire a Broker
Ready to get into the market and start looking at spaces? At this point, we strongly recommend retaining a real estate broker. A great
broker can make your real estate hunt more efficient and more effective in a number of ways.
As professionals with a good sense of the

2014 HONEST BUILDINGS, INC.

Real Estate Brokers...

Have access to databases of listings, and suggest spaces
that meet your criteria

Understand reasonable pricing for your submarket and

can help you negotiate a fair deal with your landlord

Save you and your staff time because they negotiate and
monitor transactions for you

Charge fees that are paid by the landlord

ASSESSING
YOUR NEEDS

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

Start Touring Spaces

and Narrow Your Search

transportation and how it will impact both current and

future employees.

After youve selected a broker, its time to start

touring spaces.
During space tours, focus on the suitability of the
primary physical space and the overall building. Are the
building systems (elevators, lobby, etc) adequate for
your needs? What other tenants are in the building?
In addition, be sure to walk the local neighborhood
and get a sense of the amenities that your employees
will access every day. Consider also proximity to

Navigating the Tenant Improvement

Negotiation Process

Type of
transaction

When youre ready to sign a lease on a new office

space, its time to negotiate a renovation approach
with the landlord. There are two options in this process:
a turn-key approach or a tenant-controlled (TI)
allowance. See the below table for more information
about each option.

Definition

Advantages

Disadvantages

Most appropriate
situation

Turn-key

The landlord
creates a ready-tooccupy space using
an agreed-upon
allowance.

The tenant doesnt

have to find providers
and worry about the
logistics associated
with the buildout
process. He/she
doesnt take any of
the pricing risk and
simply has to pick up
the keys when the
space is complete.

The landlord is given

a budget that he/
she may attempt to
undercut in order
to save money, thus
resulting in a lowerquality buildout.
Some argue that this
method results in
higher rents later.

Works best for

relatively standard
and uncomplicated
buildouts in smaller
spaces. May also work
if the tenant is dealing
with a large landlord
who may be able to
secure lower prices for
labor and materials.

Tenant-controlled TI
allowance

The tenant controls

allowance spending
and hires all of the
contractors and
vendors needed for
buildout. The tenant
and landlord negotiate
the size of the
allowance as part of
the lease agreement.
The overall allowance
may or may not cover
the entire estimated
cost of the tenant
improvement.

The tenant has more

flexibility and control
over the bid process,
schedule, and work
quality and can build
the exact space they
have in mind instead
of relying on the
landlord.

The tenant is
responsible for
contributing the time
and resources required
to find vendors and
monitor the entire TI
process. They also
accept all of the
pricing risk.

Works best for

specialized needs
that the landlord
is not equipped to
handle effectively
- such as high-end
finishes, laboratory
space, or unusually
high levels of security
or technology. Also
becomes more
common in good
markets where
landlords dont need
to provide as many
concessions to secure
tenants.

2014 HONEST BUILDINGS, INC.

ASSESSING
YOUR NEEDS

If you choose the turn-key approach, your landlord

will use his or her own approved vendors to complete
the project. We recommend that you require the
landlord to bid out the work to multiple contractors.
We also recommend checking references for the
provided vendors and monitoring construction on a
weekly basis. If you decide to coordinate the buildout
yourself, we highly recommend that you hire an
architect.

Hire an Architect
Once youve narrowed your search down to a shortlist
of spaces, an architect can walk through spaces with
you and assist you throughout the rest of the process.

Walkthroughs and Test Fits

An experienced architect can help you determine
whether a proposed space truly fits your needs. They
will walk through spaces with you and even perform
what is called a test fit. This means
theyll use the floorplan to show how
people and workstations might fit into the
space. Architects are very knowledgeable
in this type of process, and will help
you ensure that you get the right type
of space for your needs. Working with
an architect can also help you obtain
a smarter lease. In fact, many brokers
will request an architects input before
finalizing a contract.

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

a buildout, they can still be very helpful in figuring

out whether you should go with a turn-key approach
or a full tenant controlled buildout. As one Honest
Buildings architect notes, sometimes architects
actually end up recommending that a company
does not take the big raw space, but the smaller
as-built space, thus removing the need for design/
construction altogether. That can be a huge savings.

Examine Existing Conditions

and Perform a Review
of Basic Building Systems
There is tremendous value in hiring an architect early
on. Although the broker will be your primary negotiator,
an architect can add value in key aspects of negotiations with the landlord. For example, an architect may
find potential issues in the heating and air conditioning system for which the landlord should take financial
responsibility. Moreover, architects may have relationships with specialists like MEP engineers (experts

There are plenty of tenants

out there, paying more than
they should, because they
didnt seek out design help
when they were looking.

Developing a Preliminary
Budget and Scope

Architect active on Honest Buildings network

As you tour, youll see spaces in all different states of construction - some
will be pre-built, some white-boxed,
and others completely raw. The cost of your buildout will depend greatly on what type of space you
choose. Fortunately, an architect can help you develop a preliminary budget for your different buildout options. This budget, while approximate, can still
provide a helpful starting point for internal decisionmaking and high-level decisions between spaces.
Although architects make a larger design fee from
2014 HONEST BUILDINGS, INC.

in HVAC systems) and code consultants (experts in

building codes) who can be involved should questions
arise during the lease negotiation process. Identifying and correcting a single issue (or ensuring that it
is properly assigned to the landlord) before a lease is
signed can create savings which more than cover the
architects fee. This synergy between architect and
broker is something often overlooked by new tenants.
7

ASSESSING
YOUR NEEDS

Paying for an Architect Pre-Lease

Many architects will offer free consultations, during which they will assess your proposed spaces
and suggest design options and tentative budgets.
Generally, this will include a walkthrough of one or
two spaces, and any verbal advice they give you.
If you want additional consultations or
more formal drawings, architects will generally
charge an hourly rate (ranging from $80 to
$250 based on the project and the seniority of
the architect). This can serve as a useful trial
period before you hire an architect for the full
project, during which a fixed fee structure is
typical (see next section for more details).

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

Paying for an Architect

Can Save you Money
In speaking with CEOs, COOs, and office managers about
their buildouts of office spaces, weve found that many
decision-makers forego retaining an architect, generally in
an effort to be lean and save expense. In fact, weve found
that over 50% of the time, architects are hired after a lease is
signed. This is an understandable mistake, but an avoidable
one!
We cannot stress this point enough: hiring an
experienced architect early on can be one of the most
important cost-saving measures you take. Even if you spend
several thousand dollars on an architect before signing your
lease, your return on that investment may be enormous.

Sources of Architect Value Pre-Lease

What architects do

How this creates savings

Find a space of the right size and develop

alternative use plans

By performing test fits and layouts against the floor plan,

architects help you choose a space of the right size. This
means you can get more out of every square foot, and can
perhaps lower your effective cost of rent.

Negotiate TI with the landlord

By walking through a space, architects can identify problems

with key building systems (mechanical, electrical, plumbing,
etc.) and help you negotiate with the landlord on how
these will be remedied. This depth of building systems
knowledgeand the negotiation leverage it gives youcan
supplement and aid your broker.

Create realistic buildout budgets

Based on their experience with construction and your

particular space and needs, architects can help you create a
preliminary budget and scope for the buildout of your space.
Brokers can be helpful with rules of thumb for construction
costs, but architects can you give much more detailed and
accurate quotes without much trouble. This can also help
you justify the TI allowance that you and your broker will
negotiate with your landlord.

2014 HONEST BUILDINGS, INC.

ASSESSING
YOUR NEEDS

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

Designing And Building

Your Space

ow that youve found the right

new space and signed a lease,
you can prepare to move in!

Rentable office spaces come in varying states of

readiness. In simpler cases, you might be able to
move in immediately. The previous tenants offices,
conference rooms, kitchen, etc., will meet your needs.
Furniture might even be available for your use.
On the other end of the spectrum, some spaces
require substantial construction work to prepare
for move-in. In these cases, there are a number
of steps to design and build your space.

Hire an Architect
(If You Havent Already)
As outlined in the previous section, you may want
to retain the architect who performed your prelease work for the rest of your buildout process.
This is exactly what many companies do. But if
you did not work with an architect before signing
the lease, or if you would prefer to have a different professional perform the design work for your
buildout, now is the time to seek out proposals.
We suggest finding two to four architects whom
you think would be a good fit for your project. (More
than four choices is counterproductive, as much
time and effort is required to properly interview
and vet an architect.) In order to evaluate which
architects might be a good fit, we recommend
that you search for professional who have worked
on projects similar to your space, your desired
aesthetic, and your proposed budget. Honest
Buildings has a network of thousands of qualified

2014 HONEST BUILDINGS, INC.

architects if you need help filling out your shortlist.

In order to prepare a proposal, an architect will
need to tour the space and discuss your goals in
depth. After this initial consultation, he or she can
typically submit a proposal in two to five business
days, depending on the complexity of your space.
These proposals will most often be structured around
a fixed fee ranging from 5% to 15% of the total cost
of construction. Projects of greater complexity and
longer development planning will involve higher fees.
The architects proposal may also include line
items for other related services, such as engineering,
expediting, and project management services. When
comparing proposals from different architects, it is
important to make sure that the bids are truly apples
to apples - one bid may only look more expensive
because it includes engineering services, for example.
When discrepancies in scope like this arise, discuss
the issue with both architects to find out whether the
service is truly required. If it is, determine whether
the architect who excluded it from his or her proposal
ultimately expects you to cover those costs.
Given the importance of your architect in ensuring
a smooth and successful outcome, we recommend
running a detailed reference check with his or her
past clients before making a decision. These checks
can be invaluable for making the right choice.

ASSESSING
YOUR NEEDS

Key questions to ask an architects references before

making a hiring decision:

Please describe the capacity in which you

worked with them. Was your project at all
similar to mine?

How would you describe the quality of their work?

Did they work collaboratively and communicate their

design ideas effectively?

Were they able to deliver work on time and within

the budget you agreed upon?

Overall, would you recommend another person in

your position to work with them?

Developing Plans
After touring the space and reviewing all requirements with your new architect, he or she will often
prepare a preliminary set of drawings. Drawings at this
stage might be limited to blueprint-style line drawings for simpler projects, and include 3D computer
renderings for more complex or larger projects.
Drawings will convey the general layout which
your architect is proposing, and help you understand
how various features of the space might affect your
preliminary budget. (That glass-box conference
room, for example, might not seem so crucial after
you review the cost of glass.) An architect will help
you work within your budget limitations and find
the layout which works best for your company.
After lease signing, it is helpful to return to
the space with your architect. Bring along the
proposed layout to get a sense of the location
and dimensions of spaces, location of walls, doors,
light fixtures, etc. After you approve the rough
layout, your architect will begin to prepare more
precise drawings which will be the centerpiece
of the projects construction documents.
2014 HONEST BUILDINGS, INC.

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

The Importance of
Construction Documents
Construction documents are prepared by your architect, and are comprised of a set of drawings and
written instructions. These can be used by a General
Contractor (GC) to draft a complete proposal or bid
for the construction work. When preparing construction documents, architects will typically draw on the
expertise of multiple professionals, including design,
engineering, and expediting consultants. Again, the
more complex the buildout, the more consultants will
play a hand in the creation of these documents.
Constructions documents are essential to ensure that
a contractor has every piece of information needed to
bid on the project, schedule the construction process,
and complete it on time and within budget. Good
construction documents are not cheap to produce,
but they create savings over the life of your project.
In the course of preparing these documents, an
architect will consider every aspect of the project and
the progression of steps to complete it. In making these
considerations, an architect will anticipate issues and
help contractors avoid change orders. A change order
occurs when a contractor encounters an unexpected
obstacle or holdup that results in a deviation from
the original proposal. Change orders can significantly
increase the cost of construction, and a polished set of
construction documents will significantly reduce the
risk that change orders will occur during the build out.
Another option for reducing the likelihood of
change orders is called pre-construction, or pre-con.
During pre-con, you hire a GC to review early drafts
of the architectural drawings and make preliminary
cost estimates based on these plans. This realtime
feedback allows the architect to more quickly create
iterations of their plans, and reveals any issues related
to cost or feasibility before finalizing the documents.
Although GCs typically request a small hourly fee for
pre-con services, some will offer this work at no cost
(free-con) to improve their chances of winning your
business. Dont worry - you are not obligated to hire
a GC for your full project simply because he or she
delivered your pre-con services. Accepting bids from
a shortlist of quality GCs will ensure you find the best
price for your project, and is highly recommended.

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ASSESSING
YOUR NEEDS

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

Gather Bids
When construction documents have been
finalized, you should begin gathering bids
for the work. Requesting competitive bids
from multiple GCs will ensure that you receive a fair price, and enable you to make
a fair comparison between candidates.
To acquire multiple bids, start by
developing a shortlist of general contractors.
Honest Buildings can help you quickly
analyze thousands of professionals at no
cost to find candidates with significant
experience working on projects like yours.
After receiving the construction documents
and walking through the space, each of
the general contractors on your shortlist
should be able to provide a proposal in
5-10 business days. The more information
a GC is able to gather via construction
documents and the walkthrough, the
more precise his or her proposal will be,
with less room built in to accommodate
uncertainty or unforeseen issues. Request
that your architect join the walkthroughs to
field technical questions and provide you
feedback on the candidacy of the contractors
that are invited to bid. It is important
that project information and updates are
shared with the entire GC bid pool, so
that each proposal is drawing from equal
information and can be compared in kind.

Finalize Your Budget

Accepting bids from a shortlist of

quality GCs will ensure you find the
best price for your project, and is
highly recommended.

As proposals arrive from each of the general

contractors on your bid list, your architect
should review and confirm that each proposal
is complete, and if not, request changes or updates
from the bidder. The scope of your project can evolve
quickly, and it is not uncommon for contractors to
revise their bids following an update to a project plan.
Bids are typically delivered as simple Microsoft Word
documents. They generally include a table showing
the itemized costs of materials and labor required for
construction. In addition to these expenses, expect
to see figures for insurance, safety, and general
2014 HONEST BUILDINGS, INC.

conditions, which include the cost of accessing

the space, paying for the freight elevator, etc.
The final cost of a commercial office gut renovation
tends to fall between $55 and $175 per square foot,
depending on whether you use union labor (more
expensive) or non-union labor (less expensive), and
the level of finish required. Costs per square foot
can be significantly lower if you lease a space that
is ready or near-ready for move in. Of course, nearready spaces can still require tenant improvement
11

ASSESSING
YOUR NEEDS

projects, including carpet/flooring upgrades,

lighting changes, and interior design work (e.g. wall
paint, artwork, and other aesthetic upgrades).
After all bids have been received, your architect
will help you select one based on its thoroughness
and the qualifications of the bidder. Architects can
also identify bids that are suspiciously low or too
high. While your architect can advise you on the
hiring process, you are ultimately responsible for
this decision - so be sure you are comfortable with
the GC! A strong, healthy relationship with your
GC (with whom youll spend lots of time over the
next weeks and months) is crucial to the success of
your project. If there is a GC whom you trust to do
the work correctly, but whose price is slightly out
of range, you can use lower bids to coax them into
a slight reduction in order to win your business.
Once youve selected a contractor and signed
a contract for the project, plan to meet onsite
with both the architect and GC to discuss the
work. Often, small changes in the construction
documents will be ironed out during these
initial meetings, and the architect will then
produce final drawing that are detailed enough
to submit to the Department of Buildings.

File Work Permits

and Ensure Sign-Off
From the Landlord
Depending on the complexity of the buildout, the
landlord may require a permit to be filed with the
Department of Buildings (DOB). Architects will either
provide this service with in-house permit expeditors,
or subcontract a provider who specializes in this area.
To file for a permit, your architect will produce
a set of detailed drawings. These will include the
exact plan for construction, the final outcome, and
all specifications required by the DOB. Allow two or
three weeks in your construction schedule to receive
approval from the DOB, depending on the complexity
of the project and extent of structural changes.
Construction on your space will not begin until the DOB
has approved the plan submitted by your architect.
Often, the landlord will retain an architect to review
the plans that your architect submits. Be sure to

2014 HONEST BUILDINGS, INC.

SELECTING
YOUR SPACE

DESIGNING
AND BUILDING
YOUR SPACE

ask your landlord who needs to review construction

documents before you are cleared to begin work.

Construction
Once you have secured the DOB permits and
approval from your landlord, your GC will
move a construction team into place.
As construction advances, two or three weekly checkins at the work site will help you understand the progression of the project, and answer unexpected questions that may arise. Your architect will be able to
manage the project from a high level, but there is no
substitute for being onsite and speaking directly with
the GC. This is also a good time to call an IT service
provider, who will ensure that the wiring installed by
your electrician is appropriate for your IT setup.

Post Construction
When your GC reports that construction is finished,
inspections will be performed by the Fire Department
and the DOB. Walk through the space with your GC to
make note of any work that has not been completed,
and pay the contractor after these issues are addressed.
When your space has been inspected, your local jurisdiction will issue you a certificate of occupancy.

Move In
Now that construction is complete and youve
obtained a certificate of occupancy, you can officially move into your new space! Oversized
ceremonial scissors and ribbon can be purchased on Amazon.com at a reasonable price.
Of course, you still need to install furniture, set
up computers and server rooms, and configure your
internet and phone lines. In addition, youll have
to advertise your move and notify all clients and
vendors of the new address. Once this is complete,
you can move any furniture, computers, and files
into your new, built-out office space. Be sure to plan
for all moving and IT costs in your initial budget.

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Conclusion

he workplace isnt just a physical

space where employees gather.
And its certainly not just a cost of
doing business.
A workplace is the motivating and
supportive space where your ideas and
initiatives come to life. Is it any wonder
that office enhancement has been proven
to boost business performance? Often a
companys second-most valuable asset,
workplaces are necessary to attract and
retain the most valuable asset: talented
workers.
In other words, a thoughtfully
designed space - one which reflects your
companys values, goals, and culture - is
vital for your business. Thats why, in any
organization, serious strategic thinking
about the future means creating an ideal
physical workplace. You are quite literally
laying the groundwork for success.

2014 HONEST BUILDINGS, INC.

THE ROLE OF THE WORKPLACE IS...

Enabling new ways for people to work within an

organization

Valuing the individual

Implementing new technology

Shifting or reinforcing culture and change

Leveraging facilities as assets

Facilitating faster and more simple change

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Helpful Terms
Tenant Improvement (TI): Any construction or
renovations done on the commercial space prior to
move-in; synonymous with buildout and fit out.
TI Allowance: A negotiated sum a landlord is
willing to spend to customize space for the needs
of a particular tenant. For some spaces in need
of freshening up and minor renovations, this will
be enough to cover all costs. However, in a brand
new space the TI allowance is often insufficient to
complete construction, even with the most inexpensive
components. Additional construction expenses
are paid by the tenant. Note that this only covers
the cost of construction and not the furniture and
other funishes you will need before you move in.
Construction Documents (CDs): A set of documents
that includes all building plans, specifications,
and supporting paperwork. These are drafted
and compiled by an architect or interior designer,
and interpreted by general contractors. They are
usually necessary to receive bids from vendors
and obtain permits from local authorities.
Mechanics Lien: Contractors file this if they are not
paid, or not paid the correct amount. It gives them
rights over the leased party until it is waived.

2014 HONEST BUILDINGS, INC.

Close-out Book: A collection of all the permit

and warranty information, a list of all suppliers
and contractors, and the final lien waivers from
all your suppliers, vendors, and contractors.
As-built Construction Drawings: These
show how the project has changed from the
original drawings. This will help with any future
construction that may be done on the site.
Permits: Construction must be inspected during and
after completion to ensure compliance with national,
regional, and local building codes. Failure to obtain
a permit can result in significant fines and penalties,
and even demolition of unauthorized construction.
Unions: Any company that has a contract
with union labor to perform the labor on their
projects. Union labor agreements generally cover
such things as hourly wages, time off, etc., and
can make the cost of construction higher.
Change Orders: Work that is added or deleted
from the original contracts scope of work. It
alters the original contract and/or completion
date. The change order is agreed upon by the
tenant, contractor, and architect/engineer.

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