Construction Law: Co-op and condo renovations by C. Jaye Berger

C. Jaye Berger, Law Offices of C. Jaye Berger

This is the prime season for renovations on co-op and condominium apartments. It never ceases to amaze me how little time people spend on reviewing the contracts, when they are paying so much money for the work itself. Only when the fall comes and the problems in the relationship surface, do they start to look at what they agreed to.

First, whatever you are planning to do, consult with an attorney who knows this area of the law. Alteration agreements with the building are getting longer and longer and you want to know what you are agreeing to and be set up properly for insurance. There needs to be a signed contract requiring insurance coverage in order for the coverage to spring into effect.

On contracts with contractors, a typical mistake people make is agreeing to fixed payments that bear no relationship to the amount of work done. Contractually you may be required to pay, but little work has been done. In rare cases, shareholders will have paid out most of their money and only a small percentage of the work has been done. There must also be signed waivers of mechanic’s liens so that you and the contractor are on the same page with what is or is not owed.

Another big mistake is minimizing the amount of time you use an architect or designer and allowing the contractor to advise on what he thinks is best. Recently, a shareholder in a high end co-op apartment allowed his contractor to demolish a non-load-bearing wall with no design advice from an architect. The crown molding and the plaster came down together, causing expensive damage. When asked how this happened, the client said “The contractor thought it looked good.” The contractor said not to worry because he had studied architecture. You need to have a team of the right people with the right expertise.   

When people consult with me after problems occur and I explain how the process should  work, they often say, “Oh, I had no idea.” This is why, whatever project you are about to embark on, I always recommend taking a deep breath, then pause and run it by an attorney who can explain what can go wrong and how to prevent it.

Ideally, I like to be consulted with about  these issues before the contracts are signed, so that I can help put things on a better course. 

C. Jaye Berger, Esq. is the principal at Law Offices of C. Jaye Berger New York, N.Y.