Steps to avoid Pitfalls in Remodeling Residential Condos and Co-ops

1. Confirm if there are any parts of the building exterior and structure that are difficult to modify smoothly.
2. Check for various violations issued by the Building Department that may restrict remodeling.
3. Understand how flexible the condo or co-op board is regarding design plans that slightly deviate from the association’s regulations.
4. Review major aspects and factors that limit remodeling, including the existing building structure and stability, plumbing, electricity, mechanical systems, and fire prevention systems.
5. Prepare a highly detailed construction contract that includes high-quality design drawings and specifications (scope of work, work schedule, cost breakdowns by trades, payment schedule, penalties for construction delays, etc.). This ensures better quality control and supervision of the contractor's work and facilitates conflict resolution in case disputes arise later.
6. Verify that the contractor has sufficient insurance, references for past completed work, and can obtain feedback from the references.
7. Confirm that the contracted contractor has fully paid all amounts related to the construction work including subcontractors and obtained proof of payment receipts and lien waivers to prevent disputes or future liens against the property.
8. Hold retainage from construction progress payments and release it upon receiving the Letter of Completion (LOC) issued by the DOB as part of the final closeout