Setting up a co-location

Agencies in a co-location arrangement partner under shared commercial terms and share costs based on space occupied. All partners are responsible for making joint decisions and following agreed governance. The lead agency has some additional responsibilities.

Partner agency responsibilities

These responsibilities might be shared equally or taken on by the lead agency depending on how the co-location is structured.

Projects

• Managing fit-out, landlord/developer relationships, and property agreements.
• Overseeing construction, design decisions, move logistics, and site opening.

People and change

Leading change support and communications, development of user guides, and induction training.

Governance

Participating in shared governance for the building.

Lead agency responsibilities

Leasing

Holding the head lease and leading procurement.

Building operations

• Managing facilities and operational governance of the building.
• Acting as a person conducting a business or undertaking (PCBU), ensuring health, safety and security requirements, and managing shared services.
• Handling financial processes, reporting, emergency and incident plans, and building-wide communications.

Formalising the co-location

Before any agency signs a lease, everyone involved needs to agree how the co-location will work and who is responsible for what. This helps protect both the Crown and the lead agency from financial or commercial risks.

Memorandum of Understanding (MoU)

The MoU is the first agreement between the agencies who plan to co-locate. It confirms that they intend to lease a space together and includes:

• Key project details – budget expectations, how long the lease should be, and how much space is needed.
• How decisions will be made – including design choices and changes to the project scope.
• What each agency is responsible for – including the lead agency.
• Exit options – what happens if an agency needs to leave the project.

The MoU should be signed early to establish intent for agencies to pursue co-location. It ends when the main co-location agreement is signed or if the project stops before leasing.

Working out how to allocate space and associated cost

There are different ways of working out the space required for each agency and costs depending on the funding model.

Funding a co-location

Before signing the MoU, each agency needs to confirm:

• how many people they expect to have working at the location
• how often staff will be on site
• what working styles will need to be accommodated
• any special spaces required (e.g., secure rooms, customer facing areas)
• how the fit out costs will be shared
• ongoing cost-sharing (e.g., rent and operating expenses)
• how any change to an agency’s requirements will be handled.

Talk to the Government Property Office about suitable cost allocation templates.

Email us

Co-location agreement

The co-location agreement is the main legal agreement between all agencies. It starts when rent begins and ends when the lease ends. It aligns with the lease and sets out:

• how costs will be shared
• how an agency can exit the co-location
• how new agencies can join
• how decisions will be made
• health, safety and security operations
• any limits on what the agencies can do in the building, such as activities that need landlord approval.

How we can help

Contact us for help with facilitating discussions on roles and responsibilities, choosing a lead agency, determining an appropriate cost and funding structure and formalising the co-location.

We can also provide MoU and co-location agreement templates and help develop, customise or review the documents.

Funding a co-location

Email us