When it comes to building maintenance in New York City, few compliance requirements are as significant—or as complex—as Local Law 11, also known as the Façade Inspection & Safety Program (FISP). Enacted to prevent dangerous building façade conditions, Local Law 11 mandates that all buildings over six stories undergo routine inspections and necessary exterior repairs every five years.
But while engineers and contractors are central to the technical side of compliance, building owners, co-op boards, and condo associations face a host of legal issues that must be addressed before, during, and after the construction process.
At Kushnick Pallaci PLLC, we regularly assist property owners and boards in navigating the legal complexities of façade repair work. In this post, we’ll break down the most common legal challenges that arise during Local Law 11 projects—and how to avoid costly mistakes.
What Is Local Law 11?
Local Law 11 is part of the NYC Administrative Code (originally Local Law 10 of 1980, revised in 1998). It requires that qualified exterior wall inspections be conducted every five years by a licensed engineer or architect for any building taller than six stories. These inspections must be filed with the NYC Department of Buildings (DOB) and categorized as either:
- Safe
- Safe With a Repair and Maintenance Program (SWARMP)
- Unsafe
If a building is deemed “Unsafe,” repairs must begin immediately, with protective measures such as sidewalk sheds erected until work is completed.
Legal Issue #1: Construction Contracts That Favor the Contractor
Once violations are issued or conditions are discovered, boards often rush to get proposals and sign contracts with façade contractors. Unfortunately, many of these contracts are one-sided, drafted to benefit the contractor with vague language, weak remedies for delay, and little protection for the owner.
Some common pitfalls include:
- Undefined project scope or missing references to the engineer’s FISP report
- Lack of clear milestones or completion deadlines
- No penalty for delays or failure to obtain sign-offs
- Inadequate insurance or failure to list the building/board as additional insureds
- Absence of indemnification clauses protecting the owner from third-party claims
Before signing any proposal or contract, consult a construction law attorney to negotiate fair terms and avoid future disputes. Learn more about construction contract review services here.
Legal Issue #2: Access to Neighboring Properties
In tightly packed areas of NYC, your contractor may need to install scaffolding, netting, or protection equipment that extends beyond your property line. This is where access license agreements and RPAPL § 881 petitions come into play.
Ideally, your neighbor will voluntarily grant access through a written license agreement that spells out:
- The duration and nature of access
- Insurance and indemnification requirements
- Restoration and repair terms
- Compensation, if applicable
However, if the neighbor refuses, your board can petition the court under RPAPL § 881 to obtain access. These proceedings can delay your project if not handled promptly and professionally.
At Kushnick Pallaci PLLC, we draft and negotiate custom access agreements and represent owners and boards in 881 petitions to ensure timely project execution. Read more about construction access and license agreements.
Legal Issue #3: Managing Liability and Insurance Coverage
Façade repairs involve working at height, in occupied buildings, and often on aging structures. That makes risk management a central concern for any Local Law 11 job.
Key legal points to address:
- Does the contractor carry sufficient general liability, worker’s compensation, and umbrella coverage?
- Are you listed as an additional insured?
- Is there a clear indemnification provision protecting the building if a pedestrian, tenant, or neighboring property is harmed?
- Are subs and third-party vendors also covered?
- Will the contractor provide a certificate of insurance and policy endorsements?
Even one gap in coverage can expose the board to lawsuits and insurance disputes. That’s why insurance and indemnity clauses must be drafted carefully and reviewed in detail.
Legal Issue #4: Change Orders and Project Scope Creep
What starts as a $250,000 project can quickly balloon into $500,000 if the contract lacks controls over change orders and extras. Many façade repair jobs uncover unforeseen conditions like spalled brick, deteriorated lintels, or hidden structural issues.
To prevent disputes:
- Require written change orders signed by the board or managing agent
- Link payment to progress milestones—not just time elapsed
- Insist that any price increases be pre-approved in writing
- Consult with your façade engineer or consultant before approving extras
Our team helps boards negotiate payment structures and change order protocols that ensure transparency and cost control throughout the project.
Legal Issue #5: Tenant Interruption and Habitability Claims
Façade repairs can cause loud noise, blocked light, dust, and access disruptions. For residential co-ops and condos, that often leads to complaints—or worse, legal claims from shareholders or unit owners.
We help boards proactively:
- Notify residents of the construction schedule
- Include “no rent abatement” and limited liability clauses in proprietary leases
- Coordinate access notices and limited work hours
- Build protections into the construction contract for unit-owner claims
Legal Issue #6: Contractor Nonperformance or Default
Unfortunately, not every contractor finishes the job. Some disappear mid-project, fail inspections, or leave behind liens. That’s why we recommend including:
- Performance timelines and termination clauses
- Lien waivers with each payment
- Retainage to withhold final payment until DOB sign-off
- Personal guarantees in certain cases
We also represent boards in construction dispute litigation when things go wrong.
Final Thoughts: Don’t Let Local Law 11 Create a Legal Mess
Local Law 11 compliance isn’t just a construction issue—it’s a legal one. From contracts and insurance to license agreements and tenant concerns, boards must protect their buildings legally as well as structurally.
At Kushnick Pallaci PLLC, we focus on construction law and have extensive experience helping NYC condo and co-op boards navigate façade projects safely and efficiently.
Need Legal Guidance on Your Local Law 11 Project?
Call us at (631) 752-7100 or
👉 Visit www.nyconstructionlaw.com
to schedule a consultation. We’ll review your contract, help negotiate terms, and make sure your building is protected from day one.