alteration agreement process

An architect will be required due to the wall. Proceed accordingly.

Check with your super first. Mine knows all the load bearing walls in all the lines. They usually must check the work as it proceeds, so supers often know a lot about the infrastructure of the apartments. My super was very helpful in these matters, especially with the alteration agreement.

Also, a good contractor can also help you with the details of the alteration agreement so that there are no problems or flagged items. It depends on how things are worded. It's not that you want to lie or misrepresent what you're doing. It's just that certain wording sets up red flags. Our managing agent is very good and processing these applications quickly. However, they look for certain phrases in the description of the work as flags for further details.

For example, I have a galley kitchen and wanted to take down 95% of the wall at the entrance door. I would have said just that, but the contractor said that should be worded as "widen the entrance".

I wanted to reroute the required kitchen vent, something else that could be flagged. That was worded as "upgrade the vent".

All detailed plans were sent to the Board. The super came up several times during the process to check the work. Nothing was hidden.

As for painting, we use the same alteration agreement, but certain parts don't have to be completed. The application fee is cheaper for painting that a kitchen renovation. The only reason they even want the paperwork is for the license and insurance of the painters.

I appreciate the help. The super didn't know if an architect would be needed or not. The contractor has done work in a lot of units in the building (about 40% according to the super) and told me that he hasn't needed architectural plans before.

An architect quoted $6000 to draw up plans for the board and DoB - is this reasonable? With the expediter fees, it comes to about $10000. Yikes. It almost seems only wealthy people are able to do these type of renovations.

If I'm painting myself, do I need to complete an alteration agreement?

Chobria,

Most buildings do not require an alteration agreement to paint. Some buildings require you to hire an architect (thats if they require a permit) to demo a wall but many will let you do it. If your contractor has done a lot of work in the building I would hope he knows what he is talking about

You don't need an alteration agreement if you paint your apartment yourself. Please note that some buildings have both a DECORATING agreement plus an ALTERATION agreement. The decorating agreement is for painting and minor work. The alteration agreement is for renovations.

In my building they only have one agreement, the alteration agreement, that is tiered with fees based upon the tier. Painting you're not doing yourself comes under Tier 1, the equivalent of a decorating agreement.

Please note that with these agreements, the boards require licensing for all contractors/subcontractors, including lead paint abatement certification. They also require between 1 and 2 million dollars of insurance with both the building and managing agent listed on the policy. In my building, they require insurance separately for all plumbers and electricians.

In my building the alteration agreement excludes things that they consider "cosmetic" or "minor," so you should check yours. Cosmetic in my coop means
Painting
Wallpapering
Bathroom fixtures
Lighting fixtures
Kitchen fixtures
Floor refinishing

Removing a wall requires permit and 6,000 for architect is pretty reasonable. Expediter should not cost more than 2,500 for such job. You will also need to pay for asbestos report though, less than 500 I believe. When architectural plans are required, it may take a while for the board review process before you can submit to Department of Buildings.

Karhu is right, however some buildings do allow you to remove a wall or walls so you should check with them

Thanks everyone. Lots of good info and very much helpful!

One more question - if my apartment does not have a dishwasher already, would I need to complete an alteration agreement if I wanted to install only a dishwasher (and not do any other work)?

Thanks again!

Your super should know what paperwork is required. You'll need a licensed plumber and possibly an electrician for the installation. Some coops that originally did not have dishwashers in all the apartments impose a maintenance surcharge for this; so they require paperwork. Some coops require a decorating agreement.

I am surprised that your board requires you pay them a percentage of the cost of the work. Mine charges a non-refundable fee for processing the application with a sliding scale based on the scope of the work. HOWEVER, the require a $5,000 refundable check to cover potential damages. This is besides the contractor's insurance. They return the check after the super signs off on the completed project.

$5K is not bad, jelj; I think my condo just raised the equivalent deposit to $10K.

Each building has different fees and deposits, many are now charging 10% of the contract if the project is of decent scale

Yep, that's what's happening now in my building. Until this year, my coop charged 10% deposit of the renovation, but didn't deposit the check. They held it until the renovation was completed and then gave it back. This year they changed the agreement, stating they WILL deposit the check and give you the money back afterwards, plus whatever interest it earns. So frustrating.. I wrote the check a few months ago and ..... amazing, they still haven't deposited it. Shhh-- don't tell them!

Thanks everyone.

My alteration agreement states that I need to submit a check for $600 processing fee to the management company, 2% of the total contract amount to the co-op, and a minimum $1000 to maximum 7.5% of total work order as a refundable security deposit. I don't mind submitting the 2% to the co-op or the security deposit, but what annoys me is the $600 that the management company takes for every single work order you submit. So if I need to submit an alteration agreement for the dishwasher, that's $600. Then a few months later if I decide to change the floors, that's another $600.

do contractors negotiate the alteration fee in the cost or is this separately paid for by the owner having the work done.

George: No. The alteration fee is charged by the cooperative to the shareholder, and is not the responsibility of the contractor. I have never heard of a negotiable alteration fee.

As a contractor, we have never been involved with any type of fees regarding the alteration agreement.