Alteration agreement
An alteration agreement is the contract a unit owner or shareholder signs with the board before performing renovation work in their unit. It sets the scope, contractor insurance requirements, liability, deposits, work hours, and post-completion sign-off obligations.
Frequently asked questions
Can a board reject an alteration outright?
Generally yes, on grounds of structural impact, building system load, noise, or non-conformity with house rules — subject to the business judgment rule. Outright denial of cosmetic work that meets all building standards is harder to defend and has produced shareholder litigation.
What insurance limits should the contractor carry?
Current NYC building norms are $2M general liability per occurrence ($5M aggregate), $1M workers comp/employers liability, and $1M auto. Pre-war buildings or work involving structural changes often require higher limits and umbrella coverage. The COI must name the building, board, and managing agent as additional insureds.
Are filed alterations (DOB permits) required?
For any work that touches plumbing, electrical, gas, structure, or means of egress, yes. Cosmetic work (paint, flooring over existing subfloor, cabinet swaps without plumbing relocation) typically does not require DOB filing, but the alteration agreement may still require a licensed contractor and board notification.
When is the deposit returned?
After the work is complete, all permits are signed off, the building engineer or architect confirms no damage to common elements, and any noise/debris complaints are resolved. Typical hold-back period is 30–60 days post-completion.