Quick answer
A clinic fit-out usually moves through six stages: finding and negotiating the space, design, approvals, construction, equipment installation and opening. Cash is needed at every stage, not just during the build: deposits and fees early, staged builder claims in the middle, equipment and staff at the end, then a ramp-up buffer. Timing depends on the site, the approvals required and the builder, so plan for delays.
Key points
- Six stages: space, design, approvals, construction, equipment and opening
- Money goes out long before revenue comes in, starting with fees and deposits
- Builders are usually paid in stages; finance must be ready for each claim
- Approvals and long-lead equipment are the most common causes of delay
- Budget for the months after opening, when rent and wages run ahead of bookings
Most clinic owners picture a fit-out as the few months when builders are on site. In reality, it starts the day you find a space and doesn’t really end until the appointment book is full enough to cover costs. Money leaves the account at every stage along the way, often in lumps and sometimes earlier than expected. Knowing the sequence, and when each payment falls due, is how you avoid the most common problem in clinic fit-outs: running short just before opening.
This guide walks through the stages in order, with the costs and delays that tend to arise at each.
Stage 1: Find and secure the space
What happens: You shortlist tenancies, check zoning and suitability, and negotiate the lease or agreement for lease.
What to check: business.gov.au’s guidance on choosing a business location covers access, space, costs, zoning and growth. For a clinic, add:
- plumbing access for basins and any wet areas
- power capacity for equipment
- accessibility for patients with mobility needs, including parking and entry
- soundproofing potential between rooms
- whether the base building includes air conditioning, bathrooms and fire services, or whether you’ll pay for them
Money out: legal fees on the lease, a bank guarantee or bond, and possibly feasibility or design concept fees.
Negotiate now: a rent-free fit-out period, a landlord contribution, and the make-good obligations at the end of the lease. These directly change how much you need to borrow and when.
Stage 2: Design
What happens: A designer or architect turns your clinical workflow into a floor plan: patient flow from reception to rooms, clean and dirty flow for sterilisation, staff areas, storage.
Money out: design fees, often in stages. Services engineers may be needed for plumbing, electrical and mechanical work.
Watch for: design changes late in the process. Every change after quotes are received means repricing.
Stage 3: Approvals and quotes
What happens: Depending on the works and your location, you may need council or building approvals, and a certifier. Meanwhile, builders quote on the design.
Money out: approval and certification fees.
Watch for: this is one of the most common points of delay. Build extra time into your program here, especially if rent has already started.
Finance step: once you have a signed lease, a builder’s quote and a payment schedule, you can finalise finance. This is the time to see what you could qualify for. Having finance approved before signing the building contract avoids a scramble when the first claim arrives.
Stage 4: Construction
What happens: Demolition, partitions, services, ceilings, flooring, joinery, painting and fixtures.
Money out: builders commonly work on progress claims: a deposit, then payments at agreed stages, with the final payment at practical completion. Each claim needs to be paid on time to keep the builder on site.
| Typical construction stage | What’s happening | Cash note |
|---|---|---|
| Contract signed | Deposit | First significant payment |
| Demolition and rough-in | Walls, plumbing and electrical roughed in | Progress claim |
| Lock-up and linings | Plasterboard, ceilings | Progress claim |
| Fit-off | Joinery, flooring, fixtures, painting | Progress claim |
| Practical completion | Final inspection, certificates | Final claim, less any retention |
Watch for: variations once walls are opened. Old buildings hide surprises. A contingency, often expressed as a share of the build cost, is essential.
GST note: fit-out invoices usually include GST. The ATO’s GST-free sales page says you can still claim credits for GST on purchases used to make GST-free sales, which many health services are. A GST-registered practice may be able to claim the GST back through its BAS, but it still needs to pay it upfront. Ask your accountant.
Stage 5: Equipment, IT and fit-off
What happens: Clinical equipment is delivered and installed, IT and phones are set up, practice software is configured, furniture arrives and signage goes up.
Money out: equipment deposits and balances, IT, software licences, furniture, signage.
Watch for: long-lead items. Imaging equipment, dental chairs and custom joinery can have long delivery times. Order early, and confirm installation dates with both supplier and builder.
Tax note: the ATO says the $20,000 instant asset write-off is permanent from 1 July 2026 for small businesses with aggregated turnover under $10 million, applied per asset. An eligible asset must be first used or installed ready for use in the year you claim it. If opening straddles 30 June, the installation date can decide which year a deduction falls in. See our instant asset write-off guide.
Stage 6: Opening and ramp-up
What happens: Staff start, systems are tested, marketing begins and patients start booking.
Money out: wages (often including training time before opening), marketing, consumables, rent, insurance and your own drawings.
Watch for: the ramp-up. Bookings build over weeks or months, while costs start at full rate. This is where many new clinics run short, even when the build came in on budget.
How much buffer do you need?
A cash flow statement is the best tool. business.gov.au’s guide sets out the basics: opening balance, cash in, cash out, closing balance. For a fit-out, build it month by month from lease signing to the month the clinic covers its own costs, then add:
- a construction contingency
- a delay buffer (what happens if opening is two months late?)
- a ramp-up buffer (what if bookings arrive at half your forecast?)
Our fit-out and equipment calculator does a simple version of this. It adds the build, equipment, fees and buffer, and shows how many months of fixed costs your buffer covers.
An illustrative timeline
Illustrative only; every project differs. A GP and a practice manager plan a four-room clinic in a vacant shopfront.
- Month 1: Lease negotiated with a rent-free fit-out period; designer engaged.
- Month 2: Floor plan finalised; services engineer advises on plumbing and power.
- Month 3: Building approval lodged; three builders quote; finance arranged on the preferred quote.
- Months 4 to 6: Construction, with progress claims paid on schedule. One variation for an unexpected plumbing issue is covered by the contingency.
- Month 6: Equipment, IT and furniture installed; staff trained.
- Month 7: Opening. Bookings build over the following months, with a line of credit covering wages until income catches up.
The fit-out checklist
- Lease signed, with fit-out period and make-good terms agreed
- Design finalised before quoting
- Approvals lodged early, with time allowed
- Builder’s payment schedule in hand
- Finance approved before the building contract is signed
- Long-lead equipment ordered early
- Contingency and ramp-up buffer included in the budget
Who does what on a fit-out team?
Knowing who is responsible for each part helps you avoid gaps:
| Role | Responsible for |
|---|---|
| You (the owner) | Clinical brief, budget, lease, finance, decisions on variations |
| Designer or architect | Floor plan, specifications, coordination of consultants |
| Services engineers | Plumbing, electrical, mechanical and data design |
| Certifier | Checking the works meet building requirements |
| Builder or shopfitter | Construction, trades, program and progress claims |
| Equipment suppliers | Delivery, installation, commissioning and training |
| Practice manager | Systems, staff onboarding, bookings and opening plan |
On smaller projects some roles combine. A design-and-construct builder may handle design and trades together. Whatever the structure, make sure one person is clearly accountable for the program and for telling you early when dates move.
Getting the money in place before the builder needs it
A clinic fit-out is a sequence of payments, and each one has to be ready on the day it falls due. Getting finance sorted before the building contract is signed means you can focus on the build, not the bank balance. Our page on clinic fit-out finance explains the common structures, and start-up finance covers brand-new practices.
When you’re ready, the enquiry takes about 60 seconds, and there’s no credit check involved at that point. We don’t pass your enquiry around to lenders, so you won’t be dealing with a flurry of calls while you’re meeting builders. A real person who has seen plenty of clinic builds will read what you’ve sent and ring you. Please fill in the form accurately, with your total project cost, your state and whether property is available as security, so we can find the right structure first time.
Frequently asked questions
How long does a clinic fit-out take?
It varies widely with the size of the clinic, the condition of the space, the approvals needed and the builder's availability. Rather than rely on an average, ask your designer and builder for a program with each stage dated, then add a buffer for delays.
When should I arrange finance for a fit-out?
Before you commit to the lease, or at least before signing the building contract. You'll want to know the funds will be there for each progress claim. Lenders typically ask for the lease, builder's quote and payment schedule.
When does rent start during a fit-out?
It depends on your lease. Some landlords offer a rent-free fit-out period; others start rent on the lease commencement date regardless. Negotiate this before signing, because it has a direct effect on how much buffer you need.
What delays fit-outs most often?
Approvals, variations once walls are opened, long-lead items such as imaging equipment or custom joinery, and services upgrades to the base building. A realistic program and contingency help absorb them.
Can I start seeing patients before the whole fit-out is finished?
Sometimes, if the fit-out is staged and the completed part has the necessary approvals. A phased approach can bring revenue forward, but it needs careful planning with your builder and certifier.