The insightful case summary of 432 Park Avenue Condominium’s recent litigation, authored by Thomas P. Higgins, Partner at Higgins & Trippett and published in Habitat Magazine, underscores the significance of comprehensive building condition surveys for new construction projects. These assessments play a critical role in verifying that the unit owner or shareholder received what was purchased and also safeguarding the comfort and safety of residents.
The case revolves around 432 Park Avenue Condominium, currently reigning as the tallest residential building in the western hemisphere. Despite its renowned status, the Board of Managers has grappled with an array of issues that include water infiltration, ceiling cracks, malfunctioning doors, energy inefficiency, and disruptive wind-induced noise. In response to these issues, the board of managers initiated a lawsuit against the building's sponsor and related parties. The 432 Park Avenue litigation highlights the need for a methodical approach spanning design, construction, on-going maintenance, and review of Offering Plan specifications.
This case serves as an unmistakable reminder that even the most prestigious and opulent new buildings are not impervious to post-construction tribulations, and that building issues can arise from various stages of a structure’s life cycle - from initial design to continual upkeep. Consequently, the role of comprehensive building surveys, both pre- and post-construction, becomes all the more vital. Conducted by engineering and architectural firms as well as industry technical professionals specializing in forensic building surveys and system-specific evaluations, these assessments identify potential and existing design shortcomings, evaluate construction materials and methods, verify adherence to industry standards, and check compliance with Offering Plan specifications and governing building codes.
Condominium Offering Plan Reviews (COPRs)
At the heart of this process is the Condominium Offering Plan Review (COPR), which initiates a complex journey. The resulting report acts as a guide for the Board of Managers and its legal counsel through the intricate maze of potential settlements or legal actions with sponsors. Following the issuance of the initial COPR report, the Board of Managers, in consultation with their technical and legal team, typically determines which issues warrant further investigation.
The steps involved in a typical COPR include:
- Document Analysis: This phase involves a thorough examination of the Offering Plan Description of Property and Building Condition, along with other pertinent reports and building documentation. These documents can encompass a wide range of materials such as construction drawings and specifications, warranties, service contracts, prior surveys and building systems evaluations, and repair and maintenance records.
- Resident and Board Questionnaires: Gathering insights from residents and the Board of Managers is an important step toward gaining a comprehensive understanding of the property's condition, concerns, and potential issues.
- Site Work: The physical examination of the site from roof to cellar involves on-site visual observations and non-destructive tests whose aim is to compare the as-built conditions to what was promised in the Offering Plan and related documents.
- Report Preparation: The resulting report details any observed instances of sub-par workmanship, perceived lack of compliance with applicable building code and/or the Offering Plan, and matters necessitating further investigation, testing, and/or probes. Recommendations for corrective action, associated preliminary budget projections, and photographic documentation of typical conditions should also be included.
- Follow-up Meetings and Consultation: Follow-up meetings and consultations with the design professionals, board, and legal counsel are held to discuss the report's recommendations, address any questions or concerns, and collaboratively chart a course of action.
Following the case of 432 Park Avenue Condominium, it is incumbent upon the various stakeholders in these developments to leverage forensic engineering expertise. By investing in timely assessment and thorough review, developers can enhance their project's value and longevity, while residents can place greater trust in the integrity of their new homes. Ultimately, the 432 Park Avenue Condominium case illustrates that the foundation for a successful building is laid long before its physical construction and extends deep into its life cycle. This call to action is particularly urgent for new condominium boards deliberating Condominium Offering Plan Reviews.
Contact RAND
For more information about COPRs, building condition surveys, and forensic analysis, please visit our website: www.randpc.com. If you believe your property may benefit from a survey, contact our Forensics Team at info@nullrandpc.com or call 212-675-8844.
Jamey Ehrman, PE is RAND's Forensics Team Leader.
