What Is an Office Fit-Out?
Fit-out refers to the development of empty or semi-finished office space to usable office space and depending on the stage of development of the office space, the work involved will be very different.
An office space may be offered in bare shell-and-core format (concrete without any MEP installation), Category A (flooring, ceilings and basic MEP installations done by landlord) or partially fitted by the previous occupants.
From there, a commercial interior fit out would include space planning, partitioning, flooring, ceiling works, lighting, MEP works, joinery, IT/data cabling, furniture, and branding – in that order more or less, as later trades rely on completion of the preceding ones.
Bypassing space planning in order to cut time on a project will result in going over the budget by far and wide – this is the number one reason why projects exceed budgets.
Having knowledge of what you are getting into prior to signing any lease agreement makes all budget negotiations completely different.
A tenant who thinks that their space will fall under Category A when in reality it will only be shell and core will find themselves with hundreds of thousands of dirhams under-budgeted even before any quotations have been obtained.
Office Fit-Out Cost Per Square Foot in Dubai
| Level of Fit-Out |
AED per Sq Ft |
Scope of Work |
| Category A (Light Refurbishment) |
200 – 450 |
Upgrades in flooring, ceiling tiles, basic lighting and minimal partitions. |
| Category B (Standard Fit-Out) |
400 – 800 |
Custom partitions, workstations, upgraded lighting systems, HVAC upgrades and data cabling |
| Premium / Turnkey |
800 – 1,500+ |
Design to hand-over including custom joinery and finishes |
The costs will be influenced heavily by the location. In case of premium locations such as DIFC and Downtown Dubai, the cost is generally 20-25% higher than the city average due to more rigorous design guidelines by the landlords and logistics access issues, in case of areas such as JLT, DIC, Dubai South, the costs come closer to the median or lower.
Any realistic comparison of fit out cost Dubai has to start by factoring in the location, as the costs of the very same finish level can vary depending on the building that it belongs to, for instance two Category B fits outs, one in DIFC and another in JLT, may have a cost difference of AED 100+ per square foot before anything else.
How Long Does an Office Fit-Out Typically Last?
A standard Category B fit-out would take between 6-8 weeks from approval of the design concept to handover. The total time for a turnkey project which includes the design, construction, furnishings and authorities’ approvals by one single company would normally be between 8-16 weeks according to the design complexity and speed of approvals.
Light Category A fit-outs are relatively quicker and can normally last 3-5 weeks if the work is restricted only to cosmetic work.
The time needed to approve the designs is always underestimated. An interior design concept which requires approval by the landlord, Dubai Municipality and Civil Defence will automatically add between 2-3 weeks to the entire process – allowing for this time ahead of time will save you from paying extra rent on your new office while it’s not yet finished.
A business that allows four weeks for approvals at the start of their project doesn’t feel this delay but one who doesn’t feels the pain of paying double rent.
Hidden Costs Beyond the Per-Square-Foot Rate
This is just one aspect of the true cost, and here’s where many novice tenants fall foul of underestimating their total costs.
Furniture, fixtures and equipment (FF&E). This will normally come outside the actual fit out agreement and cost up to 10-20% of the construction cost for a completely furnished space.
Information Technology & Data infrastructure. IT infrastructure, structured cabling, server rooms etc. might be included in the Category B/turnkey fit out price or might be separate – making sure about this will save you a nasty shock when you get closer to moving in.
Move & Decant Cost. The expense of moving out of your current space into your new office needs to be taken into account in advance rather than a few weeks before the move.
Fit out dilapidations upon lease expiry. In most cases of commercial leases in Dubai, the requirement is that the property must revert to its original shell and core condition at the expiration of the lease term; therefore, the cost associated with removal of your own fit-out will be incurred in due time.
Getting a contractor to break down each category of cost (including those outside his scope) separately is one of the simplest ways to gauge the actual costs involved in a fit-out project before proceeding to make any decisions.
A Complete Guide to Comparing Fit-Out Quotes
When it comes to comparison between fit-out quotes for the same office premises, two quotes usually differ significantly in terms of what exactly they include in their costs, which makes it important to look behind the curtain of bottom-line prices.
Make sure that the quotes include:
- Design fee: bundled in the construction cost or additional?
- MEP scope in detail. “MEP included” means anything from minor electrical work to complete HVAC design – it is important to know the actual scope of the work in question.
- FF&E status. Does the number include FF&E or do you have to pay extra for it?
- Approvals: Who is responsible for them? Some contractors provide landlord, Dubai Municipality and Civil Defence approvals as part of the service; others require the customer to do so and this affects both the price and your responsibility level.
- Payment schedule related to stages. It will provide much more protection to you compared to a payment schedule with large up-front payments.
- Period of defects liability. A good contractor provides warranty for a certain period of time after the hand-over – find out how long and what is covered within it.
If the quote does not include answers to 2-3 of these questions, it doesn’t mean that it is bad; however, it is an incomplete quote and incomplete quotes are what budget surprises happen six weeks into the project.
Why Choose KWH Contracting
KWH Contracting provides interior fit-out services for the commercial, residential and industrial sector in the UAE; manages design, construction and MEP contracting of each project within one team.All projects go according to the fixed itemized quotation managed by the same team from start to completion, with Dubai South and ADNOC being among its clients.
