AGL sought to optimise its Melbourne workplace footprint and align its accommodation strategy with evolving business needs and hybrid working practices. Following a review of market options and lease scenarios, AGL committed to a renewed lease at 699 Bourke Street and undertook a major workplace transformation to deliver a modern, technology-enabled environment that supports collaboration, flexibility and an enhanced employee experience while maintaining business continuity throughout the works.

Background

AGL is one of Australia's leading energy companies and an ASX-listed market leader, operating a significant corporate headquarters in Melbourne. As its existing lease approached expiry, the organisation undertook a comprehensive review of its accommodation requirements, workplace strategy and long-term property objectives.

Following the lease renewal, AGL initiated the Melbourne Future Workplace Program, comprising the refurbishment of approximately 19,300sqm across seven office floors, a double-height foyer and entrance level, and rooftop facilities incorporating an auditorium and collaborative event spaces. The program included upgrades to workplace environments, technology, acoustics and staff amenities to support modern ways of working and improve workplace utilisation.

The project represented a significant investment in AGL's future workplace strategy and was required to be delivered within a fully operational corporate environment.

Johnstaff's role

Johnstaff provided strategic advisory, project management, superintendent and FF&E procurement services across the entire project lifecycle, from workplace strategy and lease advisory through to project delivery, occupancy and final close-out.

Initially engaged to support AGL's accommodation review and lease decision-making process, Johnstaff assisted with the market search, stay-versus-go assessment and workplace strategy development. This early work established the business case for renewing the existing lease and informed the project's delivery strategy, programme and budget framework.

Following approval of the workplace program, Johnstaff led procurement, stakeholder coordination, commercial administration and project delivery activities, including the implementation of the Managing Contractor model, management of consultants and contractors, variation and claims administration, procurement of the FF&E package, and coordination of final approvals, occupancy permits and handover documentation

Addressing the issues

The project required a major workplace transformation within an occupied corporate headquarters while maintaining business continuity for thousands of employees. To minimise operational disruption and delivery risk, Johnstaff implemented a staged floor-by-floor methodology supported by an Early Contractor Involvement (ECI) process and Managing Contractor procurement model, enabling construction, design and procurement activities to run concurrently while facilitating progressive staff relocations and occupation of completed areas. This approach allowed AGL to remain fully operational throughout the works, while providing flexibility to address latent conditions, design changes and evolving user requirements. Johnstaff also maintained strong commercial control through independent cost reviews and proactive variation management, while coordinating a significant FF&E program, regulatory approvals, commissioning and handover activities to support progressive occupation and successful project completion.

Outcomes

Delivered a 19,300sqm transformation of AGL's Melbourne headquarters into a modern, technology-enabled workplace.
Maintained business continuity through a staged floor-by-floor delivery within a live corporate environment.
Achieved commercial certainty through disciplined cost control, stakeholder alignment and proactive change management.
Successfully coordinated the procurement of a complex FF&E package, incorporating extensive refurbishment, retrofit and reuse initiatives that supported AGL's sustainability objectives.