Should reinstatement work start before trading stops?

Topic
Leaving business premises
Reading time
3 minutes
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  1. Consider the work and the occupied area together
  2. Appoint the right project responsibilities
  3. Decide which business functions must move first

Starting earlier can give a closure programme more time. It can also put building work beside the people, stock and equipment still needed for trading. The decision needs an agreed scope and an assessment of how the activities would interact.

Ask the surveyor and competent project team which work can be considered during occupation, which needs empty space and what further information is required. The competent project team must determine the work methods and site controls.

Consider the work and the occupied area together

A fictional business has three areas: an unused office, an active workshop and a dispatch room. The owner proposes reinstating the office first. That looks straightforward until the contractor's access proposal passes through dispatch, which is still sending customer orders.

The empty room alone does not determine whether the programme works. The project team needs to assess access, shared services, people and the effect on the remaining activity.

Compare two arrangements using the same assessed scope:

Question Work during occupation Work after trading stops
Business interruption Which activities would be restricted, and for how long? Which remaining business tasks still need the site?
Project access Can the required areas be made available as proposed? When will each area actually become available?
Supervision Who coordinates the interface with the trading business? Who remains to make decisions after the trading team leaves?
Programme risk What happens if either activity takes longer? Is there enough time before the confirmed property deadline?

These are questions for a viable programme, not a finding that either arrangement is safe.

Appoint the right project responsibilities

Where the work is a construction project in Great Britain, HSE's commercial-client guidance explains the client's role in suitable management arrangements and allowing sufficient time and resources. Ask a competent adviser which duties and appointments apply to the proposed work. Northern Ireland has its own regime.

Give the project team accurate information about the continuing operation. A contractor pricing work in an empty unit needs to know if production, deliveries or staff access will continue. Make the intended working arrangement part of the enquiry rather than an explanation on the first day.

If the property scope itself is unclear, start with a clear instruction to the dilapidations surveyor. An uncertain list of works makes either programme difficult to assess.

Decide which business functions must move first

A sequence can be changed by a small support function. Dispatch might move before the office becomes available to contractors. Alternatively, the owner might keep dispatch in place and reserve a dedicated works period later.

Use the room-release sequence to test the business dependencies. Compare any resulting extra occupation or management cost when considering works versus a negotiated settlement.

If the proposed work belongs to the next occupier, use the incoming-tenant access review to identify the additional parties and agreements involved.

Record the arrangement the responsible parties have assessed, including unresolved conditions. If trading or the works scope changes, send the change back for review. Do not keep using a programme based on different occupancy facts.

Tell UK Auction Group when building work may affect the availability of equipment or access for the proposed sale. Keep dates conditional where the project team has not yet confirmed the arrangement.

See Leaving business premises for the wider property exit plan.

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

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