Read the full article at Habitat Magazine online.
A luxury co-op on West End Avenue is undertaking a multimillion-dollar riser replacement project without sufficient reserves by using an interest-free contractor payment plan. This allows the project, estimated at $2.3 million, to start immediately while easing financial strain on shareholders by stretching monthly assessments over nine months post-completion. The plumbing overhaul will replace aging leaking risers and transition the water-circulation system to a more efficient computerized booster system, expected to save 60% in electricity costs.
Managed by AKAM, the project features a unique 18-month payment plan negotiated by Senior Director of Project Management, Matt Resnick. The plan allows for a 10% upfront deposit followed by monthly payments, with completion by the end of 2025.
“The 18-month payment plan decreases the immediacy of the financial burden on all shareholders and it creates some certainty for the contractor,” says Resnick.
This approach also preserves the building’s reserve funds for potential future expenses. The plan’s rarity is emphasized, but Resnick suggests that asking during bidding can yield favorable terms. “I make the request during the final bidding stage, where we haven’t given an indication of who we are awarding it to,” he says.
The project is now in progress, with measures in place to minimize disruption for residents.
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