Moving Workspace: Legal & Logistical Issues
Are you planning an office move? Perhaps you're conducting a stay-vs-go analysis to decide whether to relocate your office or not. Whatever your situation, you want to understand the key risks and challenges involved in moving office, and how to navigate them.
Office relocation is a significant project for any business. It's a complex undertaking, with hundreds of dynamics and decisions. It can seem very daunting. And it's right to be wary: a poorly planned project could impact your business operations for weeks, months, or even years.
Every week, we speak to companies considering moving office, and this is a story we hear often. Through our 4D methodology, we assist companies from planning, through design and build, to relocation. We have extensive experience supporting organisations like yours through their office moves.
In this article, we'll explore the 6 most important challenges you'll face when moving office. This includes both legal and logistical topics. We'll also provide you with actionable advice and tips to manage them effectively in your project. By the end, you'll understand the key risks to your relocation, and you'll know how to manage them to ensure your project is successful.
Lease Terms
One of the most complex challenges companies face when relocating their office is the lease agreement. This lease agreement covers the legal terms of your use of the office for the length the lease is valid for - usually between 5 and 10 years.
Many companies simply misunderstand the complexities of lease agreements and their ramifications. As a result, they don't review and negotiate the lease terms as thoroughly as they should. This leads to significant financial disputes and legal penalties. 1 in 2 UK companies experience disputes over lease terms during office relocation.
To mitigate the risk of legal exposure in your lease terms, you should engage a specialist commercial real estate attorney. They will be able to review the lease terms and negotiate with the landlord on your behalf. They should also help you understand the legal and financial ramifications of your lease agreement.
Beginning the review process in plenty of time will allow you to be thorough. As a result, you will have a favourable lease contract. This will reduce your exposure to stressful, time-consuming, and expensive disputes.
Permissions
One challenge many companies underestimate when planning their project is the necessary permissions. These cover different areas, such as fit out, occupancy, and usage of the space. In the UK, the key permissions are planning permission (for external or structural works) and building regulations (for all buildings). Listed building consent is also relevant (for listed buildings only).
Operating without sufficient authorisation can result in fines of £20,000 or more. Even worse, beginning works without proper permissions could lead to significant delays. The associated costs of this would be huge.
To avoid this happening in your project, work with an experienced design & build company. They will be able to advise you on the necessary permits for your specific location, building, and project scope. They should also be able to help you prepare the applications, or even manage the process for you.
Appointing a specialist planning consultant may also be advisable if your permission needs are complex. By ensuring you have all the necessary permissions before you begin your project, you will reduce the risk of increased costs and damaging delays.
License to Alter
A licence to alter (LTA) is formal permission from your landlord to make significant changes to the property. If you lease a Category A space, you will need an LTA for the initial fit out. It would also apply to any changes to the layout or services of the building during any refurbishment.
An absent or incomplete LTA pack means the alterations are unauthorised legally. This would cause a breach of the terms of your lease. As a result, you could incur additional costs from the landlord, or delays to the project while the LTA is created.
To avoid this being an issue in your project, you should work with your office fit out company to prepare a full LTA pack before any works. The contents of the pack will vary depending on the works. Typically, this will include a detailed drawing pack, a full scope of works with specifications, and a project programme.
Another way to prevent the LTA from being an issue for your relocation is to maintain open lines of communication with your landlord. By asking keeping them informed regarding your plans, they can advise you of any restrictions or limits. This will enable you to work around their requirements, preventing project delays while the design is changed for LTA compliance.
Local Regulation Compliance
Alongside the nationwide permissions, there will also be local regulations to comply with. These cover areas such as building codes, safety standards, and zoning laws. The key considerations are building regulations, the Health and Safety at Work Act, and local zoning laws.
Much like national-level regulations, non-compliance can incur significant fines. The level of these will depend on the local metropolitan and borough councils in which your office is located. Also much like nationwide regulations, the greater cost lies in delays and increased associated costs. Nearly 40% of UK businesses face operational delays due to failure to adhere to local regulations during relocation.
To mitigate the risk of non-compliance impacting your project schedule, ensure that any planning consultants or other specialists you appoint are knowledgeable as to the local regulations in your new office's borough. Such regulations vary between councils, so understanding the differences is crucial.
Logistics
The most underestimated workspace relocation challenge is the logistics. The practical aspects of physically relocating the entire contents of your office (including your staff) within a very short period of time are very complex and demanding.
Having the new office operational as soon as possible, and minimising the disruption to business operations, is where are lot of projects fall short. The average cost of an office move in the UK is between £500 and £1,000 per employee. However, the cost of not having those employees operational for several days due to logistical failures is far, far higher.
You can mitigate the risk this poses to your relocation through a comprehensive relocation plan. This will ensure nothing is left to chance, every decision is made, and everything is fully resourced. Ensuring good communication and accountability is essential to a hassle-free move. It's also helpful to appoint a company to manage the process for you, whether that be your fit out partner or a removal specialist.
Technology
One of the most dreaded parts of office relocation is the transfer of all the IT equipment and infrastructure in your office. This includes internet, phone systems, and servers as well as equipment such as laptops, and audio-visual suites.
IT relocation is so dreaded because it can potentially increase your move's downtime. If your people and equipment are all relocated, but waiting hours or days for the IT to be fully operational, then your business operations will be severely affected. Over 70% of businesses cite IT as the most challenging aspect of relocation.
You should involve your IT team as early as possible to ensure they are engaged with the process and happy with the IT plan in the new location. You can then work with them to plan the transition and ensure nothing is left to chance. You could also appoint a specialist IT relocation company to ensure a smoother transition.
Another important point is ensuring all files and information have a cloud backup, so that no data is lost. By managing the technology risk effectively, your office relocation will be a lot more efficient and eliminate any risk of disruption to your company.
Navigating Your Office Relocation Challenges
Successfully navigating the key challenges of your office move will turn it from a stressful mess to a hassle-free project. Planning will enable you to focus on long-term success rather than short-term legal and logistical headaches.
By proactively addressing lease terms, permissions, LTA, and local regulations, you're protecting yourself from protracted and expensive legal proceedings. By managing the logistical and technical considerations, you're ensuring that your move is not derailed.
To take the next step toward a hassle-free, successful office relocation, get your own Ultimate Office Relocation Guide. Inside, you'll find answers to your most pressing office relocation questions. By the end, you'll understand everything involved in your office relocation, what it costs, and how long it will take. Get your Ultimate Office Relocation Guide Here.
To keep learning about office relocation planning and risk management, explore these articles on our learning centre:
To get started planning your office relocation with Zentura, reach out today. We help companies with the entire relocation process. This end-to-end approach allows you to focus on what matters most to you - managing and growing your company. Reach out Today.
