What Is an Alteration Agreement?

An alteration agreement is a contract between a NYC co-op or condo unit owner and the building’s board that governs any renovation, construction, or installation work inside the unit. It specifies the approved scope of work, contractor licensing and insurance requirements, work hours (typically 9 AM to 5 PM weekdays only), construction deposit (usually $2,500 to $25,000), required architectural plans, DOB filing obligations, indemnification clauses, and the unit owner’s financial liability for damages to common elements or neighboring units.

Most NYC buildings require alteration agreements for any work beyond cosmetic painting, including flooring replacement, kitchen and bathroom renovations, wall removals, and HVAC changes. The board’s managing agent reviews submitted plans, collects certificates of insurance from contractors, and inspects work before releasing the deposit. Violations trigger fines, stop-work orders from the board, and liability for damages.

Tired of chasing contractors, COIs, and renovation deposits? MD Squared drafts and enforces alteration agreements, vets contractors, tracks insurance certificates, and inspects work from start to finish. It is all built into our Condo-Coop Property Management service, designed to protect your building while owners renovate. Reach out to our team and let us handle the renovation oversight for you.

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