Setting Requirements

Following successful Initial Engagement, both owner and occupier will agree to engage in a dialogue regarding the leasing of the space. There is the opportunity at this stage for constructive dialogue around the detail and practical considerations of the fit-out. Sustainability should form part of this process.

The following should be considered as guiding principles to inform agreeing and recording requirements. Some of the requirements may be later captured within the lease (see Legal Agreement) others may be translated from the occupier's Requirements Brief into the design specification.

Any records of preliminary discussions and agreements in principle from any Initial Engagement stage should form the start point.

The joint aim should be to agree minimum mandatory requirements to be captured within key documents, e.g. lease, license for alterations, design specification etc. In addition, the parties may wish to identify some voluntary commitments that are not subject to legal terms but set out collective aspirations that are to be strived for.

considerations

The owner should ensure that:

  • The proposed fit-out design and process is consistent with any “corporate” commitment to sustainability.
  • The detailed negotiations reflect any specific targets, processes or fit-out guidance they have developed.

The occupier should ensure that:  

  • The owner is aware of their vision for the property set during the Search for Space stage.
  • The owner understands how this translates into any specific sustainability aspirations and potential support required from the owner to achieve this.

1. Underpinnings for Project Success

Building on the foundation of the early stage Requirements Brief developed by the occupier to inform their Search for Space, both parties should ensure the discussions can be progressed into a formal plan and legal agreement. Both parties should also ensure that the right people, processes and tools are in place to underpin successful project delivery. More specifically:

People: having the right people (decision-makers, designers, contractors) available at the right time and with clear roles and responsibilities as part of the Project Team Selection.

Processes: having clear mechanisms in place for Design sign-off, Construction monitoring, Commissioning and Handover.

Tools: ensuring leases, specifications, contracts, manuals etc. are appropriate and in place.

Capital Contributions

It is not uncommon for owners to offer capital contributions towards an occupier’s fit-out as part of a lease incentive. These typically include a rent free period or a cash payment towards the occupier’s fit-out costs.

Whilst these will form part of the overall lease negotiation, capital contributions can be used as an effective tool to ensure any mandatory and aspirational requirements are taken on board by the occupier. This is particularly true when requesting the ‘use of a fit-out guide / specific measures’ and the owner is contributing to the cost of the fit-out. 

2. Setting Out Detail on Requirements

Following these early discussions owner and occupier should jointly outline in more detail key sustainability aspects required for any agreement.

Aspects below should be covered, as these are likely to be included in any legal agreement.  The degree to which each/any aspect can be made mandatory or aspirational will vary dependent on asset characteristics and the respective priorities of owner and occupier:

Principles for setting out detail on requirements

1. Regulatory Compliance

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From an owner’s perspective, this focuses on reducing the risk of an occupier’s fit-out failing any regulatory compliance requirements and having a negative impacting on the value of the property. Relevant regulations include:

  • The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
  • The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016.
  • Part L2B of the Building Regulations

2. Ratings & Certification

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Achieving a minimum rating or certification on completion of the fit-out works to help retain or potentially enhance the value of the property, as well as support the Occupier Benefits. Requirements could include:

  • Maintaining a minimum EPC rating, as part of risk mitigation strategy for Minimum Energy Efficiency Standards.
  • Achieving a minimum environmental certification e.g. BREEAM, LEED, Ska.
  • Achieving a minimum health & wellbeing certification e.g. WELL Building Standard, FitWel.

See Rating Tools for more information.

3. Specific Design & Construction Measures

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Supporting and encouraging the adoption of best-practice measures which maximise occupier benefits as part of the design and construction process. Requirements could include:

  • Opportunities identified to retain and reuse or upcycle/recycle existing equipment and materials from the existing fit-out, following circular economy principles.
  • Specific design measures relating to an owner's fit-out guide and integration with base-build systems.
  • Specific design measures relating to an occupier's fit-out specification or Requirements Brief.
  • Requirements relating to use of capital contributions 
  • Adherence to third party construction standards e.g. Considerate Constructors Scheme.

Example BBP member guides on fit-out

4. Measures Related to Commissioning & Handover

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To help ensure a smooth transition in to occupancy to the benefit of both parties it is essential that a clear and robust commissioning plan is set early and implemented fully. All too often inadequate resource is provided to commissioning or it is considered too later in the project to realise the full benefits. Specific requirements could include:

  • Using the BSIRA Soft Landings Framework, which promotes a smooth and effective transition from construction in to occupancy.
  • Using CIBSE Commissioning Codes.
  • Creating a commissioning plan that allocates roles & responsibilities, dedicated resource and a minimum time allocation.

5. Engagement During Occupation

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A framework should also be considered at this stage outlining how best owner and occupier can regularly engage around the sustainability performance of the property during occupation. 

For example, sharing utility data and establishing a Building Management Group. For further guidance on this topic, see the BBP Green Lease Toolkit and BBP Green Building Management Toolkit.

6. A Sustainable Approach to Resinstatement

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Owners and occupiers should seek opportunities early to identify and agree arrangements to reduce cost and waste associated with potentially unnecessary refurbishment works at the End of Tenancy

For example, suitable reinstatement arrangements could be focused around an audit process to identify opportunities to retain or upcycle / recycle / re-use existing fit-out elements.

Solutions Scrapbook

Occupier Engagement 

Occupiers of Low Carbon Workplace buildings are required to sign the Low Carbon Workplace Charter, this serves much the same purpose as a green lease, and signals their commitment to work collaboratively with the Carbon Trust to minimise their CO2 emissions. It also sets out the ongoing support they will receive from the Carbon Trust, free of charge. LCW occupiers that are able to demonstrate they have met specific criteria are awarded with certification to the Carbon Trust’s Low Carbon Workplace Standard. The Standard was developed to provide a robust and transparent approach to measuring the CO2 emissions associated with workplaces. 

Re-using Materials

As part of the fit-out of 25 Cabot Square, Canary Wharf, the design team worked closely with the contractor to achieve 98% of all fit-out waste being diverted from landfill by directing it for either reuse in the fit-out or storage for future reuse or recycling. This formed part of the contractor’s contractual requirements and sustainability plan. 

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