Whenever we purchase or take up a lease for a commercial or industrial space in Singapore, a refundable fitting out deposit or renovation deposit may be required by the building management or the MCST.
Refundable Security Deposit
The refundable fitting out deposit should be placed before commencement of any fitting out or renovation works. The fitting out deposit will be held by the building management or sometimes known as the MCST as a form of security in case there is any damage to the common areas or common properties within the building. The deposit is also held in case there is any waste material or debris left behind and are not removed properly or correctly after the fitting out works are completed. The fitting out deposit will be refunded upon completion of renovation works as long as there is no damage done or no waste materials left behind and that the common areas are in the same condition as previously before any fitting out or renovation works were done.
Who Can Place The Fitting Out Deposit
As to which party can place the fitting out deposit, it usually does not matter whether it is the tenant, owner or their appointed renovation contractors or interior design company. The building management will usually accept the refundable fitting out deposit from either parties as long as it is within the fitting out guidelines.
How to Go About Placing The Fitting Out Deposit
Depending on the area you have bought or leased, the building management or the MCST will usually have some fitting out procedures in place. There may be some forms which you will be able to fill up before your fitting out or renovation works commence. For the fitting out deposit, you can usually place a cheque with the building management during operating hours at their office which may be located within the building itself. The location of the management office may vary for different commercial and industrial buildings and may be located on the ground floor, basement or upper floor. When in any doubt, you may consider getting in touch with the building management for clarifications as different buildings may have their own set of procedures and guidelines.