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Projects & building works

What is make-good in a commercial lease?

By Progress Services Group · Last reviewed 30 October 2026

Short answer

Make-good is the work a tenant must do at the end of a commercial lease to return the premises to the condition the lease requires, such as removing fit-out and repairing damage. The exact scope is set by the lease, so read the make-good clause early and plan well before the lease ends.

What make-good usually covers

  • Removing partitions, cabling, signage and fixtures installed by the tenant.
  • Repairing walls, ceilings, floors and services affected by the removal.
  • Repainting and reinstating finishes.
  • Reinstating ceilings, lighting and air conditioning to the original layout.
  • Cleaning and handing back keys and access devices.

Make-good and fair wear and tear

Leases often exclude fair wear and tear. What counts as fair wear and tear can be disputed, so photograph the premises at the start of the lease and again before handback.

Plan early

Make-good takes time. Review the lease clause well before the end date, get the landlord's requirements in writing, and allow time for approvals, trades and inspection.

Scoping and pricing

A site walk with the landlord's representative, a written scope and a fixed price reduce disputes. Compare the cost of doing the works against any cash settlement the lease allows.

Handover

Finish with a joint inspection, a defect list and sign-off. Keep photos, certificates and invoices on record.

This is general information, not legal advice. Check your lease and seek advice if the scope is disputed.

Frequently asked questions

Who decides what make-good is required?

The lease sets the obligation. The landlord's representative usually inspects and confirms whether the works meet it.

Can make-good be paid out instead of done?

Some leases allow a cash settlement. Check the lease and agree the amount in writing.

This page is general information about the topic and is not legal, financial or safety advice. Requirements vary by state, site and contract. Last reviewed 30 October 2026.

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