It asks for the contractor's name, address, the scope of the work, start and completion dates, and whether there is a penalty for delayed completion of work. He or she will look at whether the job needs Buildings Department approval, and whether it would comply with local code. The building should also have rules for how alterations proceed. Be specific also about how hallways and elevators are to be protected, and which elevators workmen can use. The cost for this should be borne by the shareholder, said Steinbach.
Payment is as important as any other element of the job.
The shareholder's contract should specify how much will be paid up front, and how much will be withheld until the job is signed off. One major headache that can arise is when the contractor and shareholder disagree on whether a job is completed. As a result, the shareholder withholds payment and the contractor may place a mechanic's lien - against the building. If this happens, the lien will remain in force until the matter is resolved. While a lien is pending, the building could have trouble refinancing its underlying mortgage or securing other forms of financing.