A Clear Guide for Tenant Fit-Out Projects and How These Relate to Asset Classification

In commercial buildings, shopping centers, and office fit-out projects, the terms A Work, B Work, and C Work appear in almost every project.
These classifications determine who performs the work, who pays for it, and who owns the resulting asset.

A misunderstanding of these categories often leads to:

• unexpected cost burdens,
• delays during design approval,
• disagreements between landlord and tenant.

This article explains, with practical clarity:

1. The correct definitions of A / B / C Work
2. Who orders the work and who pays for it
3. Typical examples for electrical, HVAC, plumbing, and interiors
4. How construction categories relate to asset ownership
5. Practical points to avoid conflicts during tenant fit-outs

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① Definitions of A Work, B Work, and C Work

These categories classify construction work based on responsibility, cost burden, and who controls the work.

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**■ A Work

(Ordered by the landlord, paid by the landlord)**

Characteristics

• Work is performed and paid for by the building owner (landlord).
• Covers building safety, base building systems, fire protection, and structural items.
• Tenants are not allowed to modify these areas independently.

Typical Examples

• Structural reinforcement
• Fire protection systems (sprinklers, detectors, fire dampers)
• Smoke exhaust / fire compartmentation
• Base-building HVAC (main ducts, central systems)
• Electrical primary systems (transformer, main switchgear, riser)
• Plumbing stacks and main drainage lines
• Common areas and exterior façade
• Fire-rated demising walls

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**■ B Work

(Paid by the tenant, performed by landlord-designated contractors)**

Characteristics

• Tenant pays, but the work must be done by a contractor designated by the landlord.
• Used when the work affects base building systems that the landlord must control.

Typical Examples

• Secondary-side HVAC work connected to landlord systems
• Electrical feeder from riser to tenant panelboard
• Fire alarm / sprinkler head relocation
• Connection to base building plumbing systems
• Security and access control integration
• Certain infrastructure upgrades inside the tenant space

B Work tends to be more expensive because the contractor is fixed and methods must follow building standards.

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**■ C Work

(Ordered and paid for by the tenant)**

Characteristics

• The tenant can freely select contractors and materials.
• Applies to finishes, furniture, fixtures, and interior changes that do not affect core building systems.

Typical Examples

• Flooring, wall finishes, ceilings
• Non–fire-rated partitions
• Lighting fixtures and branch circuit wiring after the tenant panelboard
• Signage (subject to building approval)
• Furniture, millwork, kitchen equipment, POS counters
• Decorative elements and branding components

Most of the design-driven interior work falls under C Work.

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② Understanding “Primary Side vs Secondary Side” (Critical for A/B/C Classification)

A common rule of thumb:

Base-building primary systems → A Work

Connection points to tenant → B Work

Tenant interior beyond the connection → C Work

Examples:

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Electrical

• A Work: main switchgear, transformer, vertical riser
• B Work: feeder to tenant panelboard
• C Work: branch circuits, outlets, lighting

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HVAC

• A Work: main HVAC equipment, landlord’s main duct
• B Work: secondary ducts, adjustments of diffusers
• C Work: tenant-installed package AC units or special equipment

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Plumbing

• A Work: main stacks and building-wide drainage
• B Work: connection from tenant to main stacks
• C Work: tenant floor drains, sinks, fixtures, grease traps (if internal)

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**③ Asset Classification and Construction Categories

（Who owns what after construction?）**

This is a crucial but often misunderstood concept.

Category	Cost Burden	Who Owns the Asset?
A Work	Landlord	Landlord Asset
B Work	Tenant pays, landlord controls	Usually Landlord Asset
C Work	Tenant	Tenant Asset

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Why is B Work often considered a “landlord asset” even though the tenant pays?

Because:

• It connects directly to base building infrastructure
• It must remain for future tenants
• It is controlled for quality and safety by the landlord
• Removal at tenant exit may be prohibited or unnecessary

Thus, a tenant may pay, but the resulting equipment legally and functionally belongs to the building.

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C Work = Tenant Asset (subject to reinstatement obligations)

Most C Work items—finishes, lighting, furniture, partitions—
are classified as tenant-owned assets, meaning:

• the tenant may remove them, or
• the landlord may require restoration to base building condition at lease termination.

Understanding this classification prevents disputes during move-out.

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④ Common Misunderstandings to Avoid

**Misunderstanding 1

“Work ordered by the landlord is A Work.” → Incorrect.**
The classification depends on cost burden and infrastructure impact, not simply who orders the work.

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**Misunderstanding 2

“All fire protection work is A Work.” → Not always.**
Detector or sprinkler relocations are often B Work (tenant pays, landlord-selected contractor).

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**Misunderstanding 3

“Tenant-paid work is all C Work.” → Incorrect.**
Tenant-paid work can be B Work if the landlord requires control.

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**Misunderstanding 4

“Interior contractors can freely modify anything inside the space.” → Dangerous誤解**
Primary systems (HVAC main ducts, risers, fire systems) are off-limits and fall under A/B Work.

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⑤ How to Prevent Cost and Schedule Problems

1. Request the building’s official “Construction Category Guidelines” at the start.
2. Identify the boundaries of electrical, HVAC, and plumbing systems early.
3. Clarify B Work costs, which can significantly exceed C Work estimates.
4. Confirm asset ownership and reinstatement obligations at the lease stage.
5. Coordinate early with the landlord’s engineering/operations team.

This prevents unexpected costs and plan revisions.

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■ Summary

• A Work: performed and paid by the landlord → landlord’s asset
• B Work: tenant pays, landlord’s contractor performs → usually landlord’s asset
• C Work: tenant pays and selects contractor → tenant’s asset
• Categorization depends primarily on infrastructure impact and equipment ownership
• Misunderstanding the boundaries can cause major cost overruns
• Early coordination with the landlord is essential

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■ Disclaimer

This article provides general guidance. Actual work categories and asset classifications differ by building rules, lease contracts, and local regulations. Always confirm with the landlord and qualified professionals.