Tenant wants to remove wall & electrical fittings

[willister]

Tenant in our commercial warehouse would like to remove a wall - he apparently had a structural engineer say it is "fine" to remove. Within that wall there are electrical wires etc.

He has advised my property manager in writing that all costs are to be beared by him and also any electrical costs involved.

What should I do to protect myself and investment legally? Thanks..

We don't really care about the wall being removed as long as it is replastered back up upon his departure in future. What I am really wary of is "electrical costs" - we had a prior episode where an ex tenant did this and racked up $5K of "safety electrical costs" which we had to pay - would have gotten a lot more costly if we went to court etc. so we left it at that.

Added to that the sparky himself was a bloody cowboy and very exxy. We copped that on the chin and moved on and would like to avoid a repeat of this.

Should I insist and can I insist on using my electrician who I have used for years and trust? Secondly, what should I do to protect myself from any accidents that may occur with the removal of the wall?

Thanks again!

What I have thought of is this (all correspondence to be directed via the property manager):

1. Name and business of builder to remove wall and insurance.
2. Name and business of electrician and insurance certificate and licence number.
3. Copies of all compliance certificates upon completion?
4. Notice of any safety issues involved with electrician?
5. Copies of all invoices upon completion? (is this legal and too much to ask??)

 

[belvoir]

If you are worried about dodgy work tell him that you will do the work and to pay you upfront the costs of work.

Costs would include:

Engineer for wall
Electrician
Builder/tradie to demolish wall

Easy and clean.

 

[willister]

If you are worried about dodgy work tell him that you will do the work and to pay you upfront the costs of work.

Costs would include:

Engineer for wall
Electrician
Builder/tradie to demolish wall

Easy and clean.

We are just talking about part of a wall sorry to clarify 2.4m x 2.4m.

 

[chilliblue]

Your PM should have supplied you all that you need to cover yourself when they forwarded the request:

- Description of works including any plans
- Written confirmation from the structural engineer confirming same works
- Insurance for said engineer
- Name and insurance for proposed electrician
- Name and insurance for contractor building the wall
- Some councils may require their approve when altering walls so have the PM check


Once you hold that information and are willing to have the tenant proceed, have your PM confirm in writing of approval on the basis that the tenant sign off in writing that they will:

- not alter agreed works unless otherwise approved by you in writing
- pay for all costs associated with the nominated works
- rectify the wall at the end of the tenancy

Good idea to date stamp some images of the wall for file records before the works commence.

 

[Xenia IM]

It's commercial - make good clause in lease should cover this!
Next tenant will fit out as required anyway!

 

[chilliblue]

It's commercial - make good clause in lease should cover this!
Next tenant will fit out as required anyway!

Not always Xenia and this is where assuming gets people in trouble with commercial leases.

 

[Scott No Mates]

Not always Xenia and this is where assuming gets people in trouble with commercial leases.

The pm changes, new one knows no better and is happy with a paint job upon termination, you've done your dash.

To cover yourself, get a complete set of plans for approval (including structural), prepared by the tenant. Tenant will need a DA/CC (unless it comes under exempt works).

Depending upon what the lease says (or will say), the lessor may have the right to approve the contractors proposed by the tenant. The lessor might, in some cases, be able to claim the cost of approval of the plans (by its consultants).

 

[DaveM]

It's commercial - make good clause in lease should cover this!
Next tenant will fit out as required anyway!

And if the tenant does a runner/goes bankrupt then what?

Depending on the nature of security held eg cash bond, bank guarantee, I would want a security topup equivalent to reinstatement value