We acted for Qantas Airways to negotiate the dilapidations claim served by the landlord following their occupation of bespoke office premises. The client’s primary objective was to achieve the best possible outcome by reducing the level of the claim, ensuring that any financial liability was minimised despite the complexity of the fit-out.
The main challenge was the highly specialised nature of the internal fit-out, which included aircraft training areas with bespoke mechanical and electrical installations specifically designed for Qantas’ operations. Determining which items could be removed and assessing the landlord’s actual loss posed a significant technical and strategic challenge.
Our Approach
Our approach involved a detailed assessment of the specialist installed systems to determine which elements could be removed and which could remain. Based on this analysis, we developed a strategy that considered the timing of the client’s departure and the works that could be undertaken, leaving a residual claim. This allowed us to negotiate the settlement based on the landlord’s actual loss, significantly reducing the financial exposure for our client.
The outcome was highly successful. We reduced the landlord’s claim by over 51%, despite the bespoke and extensive nature of the fit-out. This not only delivered substantial financial savings but also enabled the client to release the accrual made on the property over several years. The client specifically stated that they would recommend Snellers to other occupiers in similar situations.
A standout aspect of this project was that it was the first time Qantas had vacated this office in around 20 years. By engaging us early, the client benefited from a comprehensive strategy from the outset, which was instrumental in achieving such a favourable result.
