I think the "average" can range all over the map, depending on what in the building's common areas can be damaged and how much it will cost to repair. In our building, the average alteration fee is $750 to $1,000. This covers damage to the hall walls and flooring, damage to the elevator, and damage in the front entrance and lobby. At the end of the renovation, if there is no damage, the fee is returned.

A part of the fee can be retained by the building if any of the building staff performs work on your behalf that takes time away from their normal responsibilities, like common area cleanup, door security, service shutdown/restart, etc.

Understand that the amount of retainer you are asked for does not in any way limit your liability. Before your renovation started your contractor should have provided your managing agent with a Certificate of Insurance of at least $1,000,000 which names your co-op corporation, your managing agent, and you as apartment owner as co-insured. If your building and/or managing agent allowed the renovation to begin without such a certificate, you have serious liability and risk exposure and should halt all work until the contractor CoI is provided.

As for management doing a daily inspection, do you know what they are looking for? Is it simply to make sure there are no unsafe conditions like an open gas line, exposed wiring, dripping water, etc? Are they checking for things like code compliance and/or adherence to the specs of the renovation?

The landlord (your co-op corporation and its agent, the management company) have the right to enter an apartment to check for unsafe conditions. Unless they are using the inspections to harass you or your contractor, I would not object to them.

I hope this helps.

Steven is right on with everything he says. We require an alteration agreement to be completed along with sketches, DOB permits and contractor contract showing the proposed work before work commences, if board approves. A $1000 deposit or 10% of the contracted price is required as well. We have the super stop in periodically to give the work a once over. He looks to see that plumbing is replaced all the way to new shut offs on the water risers, bx cable used for wiring (no romex). Building manager doesn't have the time to stop by a couple times a week.

Thank you JG & Steven for replying. I was just looking to see what other buildings do. I'm on our FC committee & formerly on our Board, although these items were never discussed. The workers in the unit above drilled thru my bathroom ceiling, filling my tub with cement & never reported the damage to the building, which I came home to find at 8pm. I should've received a call explaining what had happened & it should have been cleaned up before I got home. I felt the property manager should be doing a quick walkthrough before he leaves end of day. Then there was the issue of water that ran along their floor and came down into my apartment. Had I not been home, I would have found this damage at 8pm, hours later. I thought I should see how other more professionally managed buildings handle this. My unit was eventually fixed. I know the building took a retainer of $5000 on the expected $100,000 renovation job, but we are now thinking that was too little. I appreciate any advice that I think is worth trying to institute. Some of the other comments are helpful as well.

Hi PK - From the way I read your description of the damage that was done to your apartment, it sounds as if your upstairs neighbor has the responsibility for making you whole. Your board and managing agent will have very little involvement.

The alteration fees that boards collect at the start of a renovation are to provide immediate reimbursement for damage to any co-op common areas and structures as a result of the renovation. It cannot be used for individual shareholder reimbursement. From what you wrote, it sounds like all the damage to your apartment originated in your neighbor's apartment. Neither are co-op common areas so the co-op is most likely not involved.

Your board is responsible to all shareholders and cannot take sides in something like this. It will be up to you to get reimbursement for repairs settled with your upstairs neighbor one way or another.

Yes Steven, the owner upstairs, or actually the foreman on the job has taken responsibility for the damage to my unit. My question was initially about how buildings handle renovations, retainer amounts and fees. So you have answered all my questions. Thank you for the input. This forum is very helpful.

There are a number of issues here so I will address the ones concerned with policy. First off i agree with the stipulations that have been contributed mostly by Steven, but i would like to fill in some areas:
First things first.
1). The Coop needs to have a standing rule that all Shareholders must carry Homeowners Insurance with a Workers Comp rider that meets whatever minimum standards of liability the Coop feels is necessary. It's not about their apt. per se, it's about all the apartments and basement below them that gets damaged as well.
2). The Coop must have a renovation Agreement document that covers all aspects of standards, do's & don'ts, lien settlements etc. If you don't have one the NY Bar Association had one of their sub-committees devise one a few years back. As a boilerplate starting point it is very good. This must be co-signed by the Contractor and notarized so he and his subs are bound by the doc's rules.
3). There has to be a realistic and negotiated calendared work schedule for the project that has to be adhered to. you must post notices of it, and advance notices of any riser shutdowns as well, work hours-start/finish, no weekend work except maybe quiet work such as painting or extra coats of urethane on an already sanded floor etc.
4). Clean up: We had to institute a $100 per week charge payable in advance, for every week of the project that involved demolition, deliveries, plastering etc. where any debris or trash, including packing materials are generated. you will find that regardless of the Contractor's claim that his guys do clean-up, and they had better do it, your Super will be doing a lot of additional work cleaning, mopping, and trash for that shareholder's personal project, which is not what he is paid for. We take a portion of it to replace consumables used to clean up, and a portion goes to the Super as extra pay for extra work that is not part of his standard job.
5). We take 10% of the signed agreement contract which we must see and approve for it to be accepted as an attachment to the Renovation Agreement. The purpose of that is two-fold - to make sure the punch list has been satisfactorily completed, including any building damages; and the contractor, and his subs must sign off on a notarized Lien Release form we created so that in the event of a dispute on payments etc, they cannot place a Mechanic's Lien on the Coop for settlement. We also have a clause in the Alteration Agreement stating that all Mechanic's Liens must be settled by the Shareholder within a max of 10 days or the Shareholder will be in default of the Prop Lease/Bylaws etc.
6).There needs to be a clause in the Alt. Agreement that all work done on the premises must be done by licensed vendors, with liability insurance, a copy of which etc.
(Insurance: All contractors and their subs must provide evidence of carrying a Commercial Liability policy with the Coop, the Management company and the Shareholder who is engaging them named as 'Additional Insured', and the shareholder should also be listed as a 'Certificate Holder' as well. All Plumbers and Electricians must include a photocopy of their up to date licenses, and so does the contractor.)
7). In the Alt. Agreement should be a clause that in the event that the work involves attaching to or modifying the building systems in any way they must be pre-approved, and the area where these connections are made, those walls cannot be closed up without first being inspected by the Coop's representative. If you do not have a Super who in his past life was a licensed Engineer, then you should have an Architect arrangement on a fee basis for this. chargeable to the Shareholder.
8). depending on your building: we require all demo and construction waste be kept in the apt. until disposal, which is a once in the week before 4:00 PM occurrence, and must be hauled away. we do not allow a dumpster to be parked in front of the building. nothing is allowed to be brought in thru the lobby entrance. you cannot use a hoist to lift sheet rock pallets from the curbside truck thru a front apartment's windows etc. (if you check the insurance you will discover, as I did that the delivery truck's liability stops at the tailgate, and the Contractor's insurance begins with the walls of the apt. thereby leaving the Shareholder and Coop liable for that part over the sidewalk where it can fall and clobber a pedestrian!).
the details can go on and on covering soundproofing, wet over dry, venting of hoods, meters, flood alerts on DW or W/D if allowed, cement beds under W/D etc., etc., etc.,

Great info, dsi1, I'll be discussing these points with our Board and management. There is always room for improvement and I appreciate everyone's time in answering.

Yes Steven, the owner upstairs, or actually the foreman on the job has taken responsibility for the damage to my unit. My question was initially about how buildings handle renovations, retainer amounts and fees. So you have answered all my questions. Thank you for the input. This forum is very helpful.

Yes Steven, the owner upstairs, or actually the foreman on the job has taken responsibility for the damage to my unit. My question was initially about how buildings handle renovations, retainer amounts and fees. So you have answered all my questions. Thank you for the input. This forum is very helpful.

Yes Steven, the owner upstairs, or actually the foreman on the job has taken responsibility for the damage to my unit. My question was initially about how buildings handle renovations, retainer amounts and fees. So you have answered all my questions. Thank you for the input. This forum is very helpful.