What are the construction classifications (A, B, C construction)? Which are the tenant's responsibility? Points to note when relocating or renovating an office

A construction classification is an agreement to clarify the contractor, the builder, and the cost bearer for a construction project.
It is generally classified as follows from three perspectives: "Who orders the construction?", "Who bears the construction costs?", and "Who designates the construction contractor."

[Classification table for A construction, B construction, and C construction]

This construction classification is clearly stated in the "Construction Classification Table" in the rental contract or special agreement. Depending on the contract, it may not be as stated above, so it is important information to check when considering office relocation or renovation.

Now let's take a closer look at each construction division.

A construction is mainly related to the common areas and structure of the building (structurally important parts that support the entire building, such as the foundation and pillars) of the building, such as the exterior of the building and elevators. The owner, who is the landlord, places an order with a designated construction company and bears the costs.

[Main target of A construction work]

• Construction of exterior and interior walls and roofs of buildings
• Elevator construction
• Shared toilet construction
• Construction of stairs and common passages
• Firefighting equipment construction for common areas and the entire building
• Water supply and drainage facility construction for common areas and the entire building

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When moving in as a tenant, it will generally be rare for the lessee to be directly involved in construction work A.

If you have any requests or concerns before moving in, you may be able to consult with the owner and ask them to carry out the necessary work before signing the contract. However, even if the above applies, work carried out at the request of the tenant will often be classified as B work, with the tenant bearing the costs, so it is essential to consult and confirm at the time of signing the contract.

B construction work is mainly carried out in tenant-occupied areas and has the potential to affect the entire building.

[Main targets of B construction work]

• Air conditioning equipment construction
• Electrical installation work (distribution boards, wiring, lighting, etc.)
• Mainly construction of disaster prevention equipment within tenants
• Mainly water supply and drainage facility construction within tenants
• Partition wall construction
• Interior finishing work (wallpaper, carpet, painting, etc.)

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For B construction, the tenant is responsible for the costs, but in most cases, the selection of the construction company and price negotiations with the owner are required. To manage costs, it is important to gather sufficient information and make a plan in advance.

Even if the construction is in the common areas, if the tenant requests it, it may be included in B construction, and the definition of each construction may differ from that of the building before the relocation. Be sure to check carefully in advance.

C-type construction work is construction work carried out primarily by the tenant in the exclusive area, such as interior work and installation of office furniture and equipment that does not affect the building as a whole.

[Main targets of C construction work]

• Furniture installation
• Office furniture installation
• Installation of office automation equipment
• Installation of lighting fixtures (excluding wiring and standard building lighting)
• LAN and other communication equipment construction

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In C construction, the tenant can choose the construction company, which makes it easier to control costs and allows the office to be built in a way that reflects the tenant's wishes as much as possible. However, when carrying out construction work, the building's construction conditions must be adhered to and the owner's approval must be obtained in advance before it can begin.

Now that we understand the characteristics of each construction category, let's take a look at the points to keep in mind and ways to avoid problems when actually proceeding with an office relocation or renovation, by construction category.

Although construction work A is primarily the responsibility of the building owner, tenants also need to be aware of the following points:

Even in areas exclusively used by tenants, facilities already installed at the time of the tenant's move-in (such as air conditioning equipment and lighting fixtures) may be subject to construction A. Repairs and updates to these facilities may also be borne by the owner, so be sure to check in advance.

Please check the contents of the lease agreement in detail and make sure you clearly understand the scope and conditions of construction A. If you have any questions or concerns, it is important to contact the owner directly.

Construction work in common areas such as elevators and shared toilets may affect the business activities of tenants. Be aware of these construction plans and inform employees and visitors as necessary.

The cost of construction work B will be borne by the tenant, but as it will be carried out by a contractor designated by the owner, special attention should be paid to the following points.

Obtaining estimates for construction B projects takes longer than expected, so construction may start later than originally scheduled. It is important to set a schedule with ample time.

Since the construction will be carried out by a contractor designated by the owner, the construction schedule may be affected if construction B occurs at the same time in the same building.

In addition, unexpected problems may occur in construction work for water supply and drainage facilities, which may result in extended construction times. Be sure to include ample leeway in your schedule and make preparations to minimize the impact of delays.

Since there is no freedom in choosing a contractor, it becomes difficult to control costs. Be sure to hold sufficient prior discussions with the owner and reach a clear agreement on the details, costs, and schedule of the construction.

Because the construction work will be carried out by a contractor designated by the owner, it is important to clearly communicate the tenant's requests and needs. Be sure to confirm in advance the quality and design of the materials and equipment to be used.

Be sure to discuss with the owner in advance the procedures and costs involved if any changes or additions are needed after construction has begun.

B If the construction work is likely to affect other tenants (such as noise or vibration), you will need to work with the owner to take appropriate measures, such as providing prior notice and adjusting construction times.

Since the cost of restoring the premises to its original condition upon moving out is likely to be borne by the tenant, it is important to check in advance and estimate the budget. In particular, if you are installing special interior furnishings or equipment, be sure to plan with future restoration costs in mind.

When carrying out tenant-led C construction work, please be aware of the following points:

Make sure you understand the entire process and manage it appropriately so that the schedule for construction C does not overlap with other construction works (constructions A and B).

Setting a schedule that includes other construction work can require specialized knowledge, so if it is difficult to manage in-house, outsourcing the project management is one option.

Construction work can be carried out according to the tenant's wishes, but it is necessary to follow the building's regulations and approval procedures. Before starting construction work, be sure to thoroughly check the building's management regulations and restrictions on construction work.

Since C construction allows a company to select contractors on its own, proper quality control is required. Measures to ensure quality are required, such as selecting reliable contractors, regular checks during construction, and inspections after completion.

As with construction work B, be considerate of neighboring tenants and take appropriate measures, such as giving advance notice and adjusting construction hours.

In order to smoothly proceed with an office relocation or renovation, it is important to correctly understand the three construction divisions and make appropriate plans. However, for those with little experience, it may seem somewhat complicated and difficult.

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