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Office Accommodation Management Framework
Guideline 2: Space
Policy and guidelines for the use
of owned and private sector leased
government office accommodation
Policy and guidelines for the use of owned and private sector leased government office accommodation
1.0 Introduction 1
2.0 Purpose 1
3.0 Objectives 1
4.0 Application 1 5.0 Definition 2
6.0 Operating principles 2
7.0 Roles and responsibilities 2
7.1 Cabinet 2 7.2 Government Office Accommodation Committee (GOAC) 2
7.3 Department of Public Works 3
7.4 Agencies 4 8.0 Office building construction and ownership 4 9.0 Office building leasing 4
10.0 Occupancy 5 10.1 Government-owned and ‘Major Leased’ office buildings 5 10.2 ‘Other Leased’ office buildings 5 11.0 Tenancy changes 5
11.1 Additional area 5
11.2 Reducing area 6 11
1.0 Introduction This reference forms part of the Office Accommodation Management Framework (OAMF) suite of documents. The OAMF integrates policies, process, activities and guidelines for government agencies in relation to establishing office accommodation needs, acquiring and fitting out suitable space, utilising that space effectively and managing the accommodation-change process.
Policy and guidelines for the use of owned and private-sector office accommodation were approved in Cabinet decision number 04040, dated 12 September 1994. This document is consistent with the original Cabinet-approved arrangements and the Occupancy Agreement for government accommodation between the Department of Public Works (DPW) and agencies (Occupancy Agreement). This reflects changes in organisational structures and terminology subsequent to the original Cabinet-approved arrangements.
2.0 Purpose The purpose of this reference is to describe the principles, procedures, rights and obligations involved in the occupancy of office accommodation in government-owned office buildings and in buildings leased by the Government from the private sector.
3.0 Objectives The general objective of this reference is to support the Office Accommodation Management Framework (OAMF) and to provide a clear basis for government agencies (agencies) to plan, acquire, fitout and occupy government office accommodation in accordance with the requirements of Cabinet
and the Government Office Accommodation Committee. In addition, this reference facilitates:
• the effective provision and management of government office accommodation
• the maximised utilisation of government-owned office buildings
• the provision of suitable, cost-effective and timely office accommodation for agencies
• office accommodation changes
• the alignment of government office accommodation use with commercial office accommodation market practice
• contribution to the office accommodation needs of eligible, community-based organisations.
4.0 Application The arrangements in this reference apply to all Queensland Government departments as defined in s4A of the Financial Administration and Audit Act 1977 and to all Queensland Government statutory authorities that are wholly or partly funded through the Queensland state budget. These arrangements apply to commercialised business units but do not apply to Queensland Government corporations.
Certain legislation applies to office fitout design and construction. For example, office fitout and use must comply with the Workplace Health and Safety Act 1995 and associated regulations, the Building Act 1975 and incorporated regulations and codes, the Commonwealth Disability Discrimination Act 1992, the Queensland Anti-Discrimination Act 1991 and applicable legislation related to smoking.
In the case of government-owned office buildings and ‘Major Leased’ office buildings, these arrangements should be read in conjunction with the Occupancy Agreement. ‘Major Leased’ office buildings are those six major buildings in Brisbane in which the majority of space is leased by the State of Queensland from the private sector. Details of ‘Major Leased’ office buildings are available from the Department of Public Works (DPW).
In the case of ‘Other Leased’ office buildings, these arrangements should be read in conjunction with the specific lease conditions applicable to each lease. The lease conditions take precedence over the arrangements contained in this reference. ‘Other Leased’ office buildings are those buildings, other than ‘Major Leased’ office buildings, in which office space is leased by the State of Queensland from the private sector.
Non-government tenants occupy government office accommodation under formal agreements or leases.
Further advice regarding applicability is available from DPW.
5.0 Definition Queensland Government office accommodation is broadly defined as the space in a building where the executive, administrative, technical and professional work of agencies is performed in either Government-owned buildings or in private sector leased premises.
6.0 Operating principles The four operating principles for the use of Queensland Government office accommodation and
• Directors-General and Chief Executive Officers (CEOs) are responsible and accountable for their agencies’ utilisation of office accommodation and office accommodation services within this framework
• office accommodation and services are to be provided and utilised on a commercial, marketcomparable and user-pays basis
• whole-of-government needs take precedence over single agency’s preferences when significant benefits to government are to be realised or when significant cost savings can be achieved.
Accordingly, office accommodation in government-owned buildings must be used in preference to acquiring additional accommodation leased from the private sector
• agencies are to be represented in office accommodation matters by one authority, DPW, and must not compete in the marketplace. DPW is the managing authority for all government office accommodation (both owned and leased from the private sector) including office accommodation leased between other agencies.
7.0 Roles and responsibilities
7.1 Cabinet Cabinet may consider office accommodation-related matters from time to time and make decisions on general and specific office accommodation issues. Cabinet is the body of final decision in relation to the interpretation and implementation of the arrangements contained in this reference.
7.2 Government Office Accommodation Committee (GOAC) The role of GOAC is to formulate and review strategies and guidelines in relation to the planning, provision and management of office accommodation for agencies.
GOAC’s responsibilities have been approved by Cabinet to be:
• determination of the overall strategic direction and approach for the ownership and management of the government’s office building portfolio consistent with government policy
• endorsement of office accommodation dealings/strategies comprising purchases, disposals, refurbishments, redevelopments related to government-owned office buildings, and approval of leases greater than 5000m2 in non government-owned buildings (including coordination of appropriate submissions for ratification and/or financial endorsement of these dealings/ strategies)
• endorsement, review and auditing of accommodation standards and guidelines in terms of quantity and quality
• supervision of the performance of the government’s office building estate through reporting from DPW based on appropriate performance indicators, benchmark targets and tenants’ satisfaction levels
• acceptance and actioning of agencies’ submissions related to office accommodation issues, including the final determination on lease or relocation options which are potentially inconsistent with a GOAC-endorsed strategy
• provision of an Annual Estate Report.
7.3 Department of Public Works DPW is responsible and accountable for managing its portfolio of owned and leased office accommodation.
The Department’s role in relation to office accommodation and GOAC involves:
• performance of GOAC’s secretariat function
• development, review and monitoring of guidelines for the occupancy of government office space
• development, review and implementation of standard government leasing documentation;
• negotiation and management of all leases in non government-owned office buildings including rent reviews and ‘make good’ negotiations
• benchmarking of office accommodation performance
• coordination of office accommodation for the Government at a strategic level including allocation of space within the government’s office accommodation portfolio
• approval of private sector leases of less than 5000m2
• provision of technical and financial strategic advice related to office accommodation including the development of cost-effective solutions for the provision and utilisation of government office accommodation
• development and implementation of acquisition, refurbishment, rationalisation and disposal strategies for office accommodation and office building assets
• consultation and liaison with agencies, local authorities and the property industry in the development of office accommodation strategies
• provision of advance information to Queensland Treasury for financial advice and comment for inclusion in GOAC submissions that have an overall budget impact
• management of DPW’s Office Accommodation Program and Capital Works Program as it relates to office facilities
• formulation, auditing and review of workplace guidelines and standards in terms of quantity, quality, ergonomics and environmental sustainability
• preparation of annual office estate performance reports that include revenue and operating costs, vacancy rates and tenant satisfaction, benchmarked to the performance of office estates owned by other similar governments and the private sector
• liaison with GOAC and with other accommodation bodies in the public and private sectors
• acceptance of accommodation-related community submissions and provision of advice to GOAC regarding these submissions
• the financial tenancy management of government office accommodation, including billing and collection of payments for office accommodation and accommodation services, making contractual payments for leased office accommodation and accommodation services
• making internal government payments for office accommodation-related services.
Agencies are responsible for:
• establishing office accommodation requirements according to service delivery needs
• complying with applicable legislation
• acquiring, occupying, using and vacating office accommodation in accordance with, the policy and guidelines described in this reference, the Occupancy Agreement, and lease conditions applicable to office accommodation leased from the private sector
• payment of rent and charges for office accommodation.
8.0 Office building construction and ownership Generally, DPW assumes the ownership of, and role of landlord for, new government office buildings and existing office buildings except for those currently owned and/or controlled by other agencies.
DPW is the sole agency responsible for the construction of new government office buildings unless otherwise approved by GOAC.
Agencies must not acquire (construct or purchase) office buildings in whole or in part without GOAC approval in principle. Any such acquisitions are also subject to the normal budget process including the Cabinet Budget Review Committee process. Any agency considering construction, extension or purchase of office space may make submission to GOAC for approval. Refer to Planning section Practice Note: Preparing a submission to the Government Office Accommodation Committee (GOAC).
Agencies may acquire operational service delivery facilities such as research establishments, field stations, clinical facilities or police stations. However, the office accommodation components within these facilities should be consistent with the workspace fitout standards. The DPW should be consulted if the circumstances are unclear.
9.0 Office building leasing DPW is responsible for negotiating, acquiring and managing Government office accommodation leased from the private sector. DPW becomes the lessee when a lease is established and agencies occupy the space under an agreement that requires the occupying agencies to comply with the conditions of the lease and meet the financial commitments involved in occupying the space.
If office accommodation is to be leased from the private sector under precommitment lease arrangements, the process is to be managed by DPW on behalf of tenant agencies.
Except where other arrangements are currently in place, agencies must not negotiate nor enter into private sector office accommodation leases, including precommitment leases.
10.0 Occupancy 10.1 Government-owned and ‘Major Leased’ office buildings Occupancy of government-owned and ‘Major Leased’ office buildings is not subject to fixed terms unless agreed at the commencement of the tenancy. Generally, tenure is continuous and secure,
• the accommodation does not meet the changed service delivery needs of the occupying agency;
• the space is required for another tenant as part of a whole-of-government accommodation strategy
• the building is sold with vacant possession as a condition or
• the building needs to be vacated for refurbishment or safety reasons.
Government-owned and ‘Major Leased’ office buildings are occupied under the Occupancy Agreement.