How to budget a fit-out before you sign the lease or the quote

The most dangerous number in a fit-out is the first one you’re given. A shopfitter quotes for the works, you nod, and that figure quietly becomes “the budget”. Then come the approvals, the electrical upgrade, the signage, the fridges, the stock, the weeks of rent before opening — and the budget is gone before the doors open. This guide walks through how to build a fit-out budget that holds, and how to fund it, before you sign anything.

Why fit-out budgets blow out

Fit-outs blow out for predictable reasons:

• Scope gaps. The quote covers what the builder does, not everything the project needs.
• Hidden conditions. Old wiring, inadequate plumbing or asbestos behind the walls of older buildings.
• Approvals. Council, building and landlord approvals take time and money.
• Services capacity. Your equipment needs more power, gas or water than the tenancy has.
• Changes mid-build. Every “while we’re at it” adds cost.
• Downtime. Rent and wages run while the space can’t trade.

None of these is unusual. All of them can be planned for.

Step 1: list every cost line

Start with a blank sheet — or our free fit-out budget builder — and work through each category.

Category	What to include
Design and management	Designer or architect, drawings, project management
Approvals	Council, building certifier, landlord, any specialist reports
Building works	Demolition, partitions, ceilings, flooring, joinery, counters, paint
Services	Electrical, lighting, plumbing, gas, data, ventilation, air-conditioning
Equipment and furniture	Everything movable — machines, chairs, fridges, POS hardware
Signage and branding	External signs, window graphics, internal branding
Opening costs	First stock, uniforms, launch marketing, staff training
Downtime	Rent, outgoings and wages while closed for works
Deposits	Lease bond or bank guarantee, supplier deposits
Contingency	A buffer for the unexpected

If you’re refurbishing an existing site rather than fitting out a new one, the same list applies — with lost trading taking the place of pre-opening downtime. See refurbishment finance.

Step 2: check the site before you design

Business.gov.au advises checking with your local council about zoning — whether you can run your type of business in the area — and the permits or approvals you need, for example before you can fit out. Do this before you fall in love with a design.

Also check:

• Electrical capacity. Commercial kitchens, salons and workshops often need upgrades.
• Plumbing and drainage. Basins in treatment rooms, grease traps in food businesses.
• Ventilation and exhaust. Essential for cooking and many trades.
• Accessibility. Entry, amenities and circulation for customers with limited mobility.
• Structural loads. Heavy equipment upstairs or on suspended floors.

A building inspection or trades walk-through before you sign can save thousands.

Step 3: read the lease as a cost document

The lease shapes your fit-out budget in several ways:

• Landlord contributions. A fit-out contribution or rent-free period reduces what you need. Negotiate before signing.
• Consent for works. Most leases need landlord approval for works. Build in the time.
• Make good. If you must return the premises to its original state at the end, that’s a future cost.
• Term and options. A short lease with no renewal option gives you limited time to earn back the investment.
• Outgoings. Who pays for air-conditioning maintenance, insurance and rates.

Retail and commercial lease rules differ by state. Check what applies to you and have the lease reviewed before signing. Our guide to moving into your first premises covers leases in more depth.

Step 4: get itemised quotes

Ask every trade and supplier for itemised quotes, and ask them to separate:

• Equipment and furniture (movable)
• Building works and finishes (fixed)
• Services work
• Exclusions — what they’re not doing

Itemisation does three jobs. It lets you compare quotes fairly, it exposes gaps, and it makes funding simple, because movable items and fixed works are financed differently.

Got quotes coming in? Run them past a specialist — we’ll suggest how to split the funding, and enquiring involves no credit check.

Step 5: set a contingency you’ll actually keep

There’s no official contingency figure. The right buffer depends on the building, how well the works are defined and how much time pressure you’re under. A practical method:

1. Run your budget at a modest contingency.
2. Run it again at a generous one.
3. Make sure the generous version still works — financially and in your funding plan.

Then treat the contingency as untouchable until something genuinely unexpected happens. It isn’t there for upgrades.

Step 6: match each part to the right funding

Budget part	Usual funding
Equipment and furniture	Equipment finance, secured by the items
Building works and services (trading business)	Unsecured business loan sized on turnover
Building works and services (property owner)	Property-secured loan, from $20k to $5m
Deposits and early progress payments	Owner funds or a short-term facility
Opening stock and launch	Working capital or a line of credit
Contingency	Owner funds, or headroom in a facility

New businesses without trading history usually lean on owner funds, equipment finance and property security. Established businesses refitting or opening a second site can often use unsecured lending. Our fit-out finance page explains each route.

On the tax side, the ATO’s instant asset write-off lets eligible small businesses immediately deduct eligible assets costing less than $20,000, which may apply to some equipment in your fit-out. How fit-out works are treated for tax is a question for your accountant.

Step 7: map the cash timeline

Fit-outs run on progress payments. A shopfitter might want a deposit at contract, staged payments as work progresses and the balance at handover. Your finance may be drawn as a lump sum, against invoices, or on delivery of equipment. Lay the two side by side in a simple cash flow statement — business.gov.au has a free template — and look for months where payments out run ahead of funds in.

Illustrative example: An owner opening a small gelato shop builds a budget covering design, council approvals, joinery, flooring, electrical upgrades, a display freezer, a batch freezer, signage, opening stock and six weeks of rent before opening, plus a contingency. The freezers go on equipment finance. The works are funded with a loan secured against the family home. Savings cover the shopfitter’s deposit and the lease bond. Because the cash timeline shows the shopfitter’s second progress payment landing before the loan settles, she arranges settlement a week earlier.

Step 8: sign in the right order

1. Confirm zoning and key approvals.
2. Get itemised quotes and set your budget with contingency.
3. Line up finance — at least an in-principle view.
4. Negotiate and sign the lease.
5. Sign the shopfitter’s contract.
6. Order equipment.

Signing the builder’s contract before finance is confirmed is one of the most common, and most stressful, mistakes we see.

Common fit-out budgeting mistakes

• Treating the builder’s quote as the whole budget
• No contingency, or spending it on upgrades
• Forgetting downtime costs
• Loan terms longer than the lease
• Equipment and works quoted as one lump sum
• Starting works before landlord consent

Ready to fund your fit-out?

Once your budget is built, the funding conversation is straightforward. Share the total, the split between equipment and works, your contribution and your timeline, and a real person will suggest the cleanest structure. You won’t face a credit check for asking, your plans won’t be sent off to a long list of lenders, and the more precise your budget, the faster we can match you properly. Get your fit-out funding options.