Before commencing lease negotiations, agencies should have a sound understanding of their long term property strategy and ensure that the intended outcome of the lease negotiations fit within that strategy.
When negotiating lease terms in relation to price risk, agencies should:
When independent advice is required, as a prerequisite, agencies should consider those who have had experience working with Crown agencies and what the Crown’s property goals and objectives are. It is also recommended that agencies check to see if any of the services being sought are covered by a syndicated or all-of-government contract. Below is a list of the types of independent advice that are commonly required.
Leases set out the rights and obligations of the landlord and the agency during the duration of the tenancy. This makes the lease a document of great significance which is contractually binding, typically non-negotiable once in place, and generally runs for a long period of time.
To ensure negotiations result in best value and outcome for agencies, they should obtain all relevant information about the building, the market, outcomes of recent lease negotiations and engage appropriate specialists to assist if the deal is of a large or complex nature.
Agencies should make sure that they have a rigorous process in place for the preparation and execution of all legal documentation and that internal policies and procedures are adhered to throughout the process. The process should ensure: