Consulting Architect's Fee Disallowed for Elevator Upgrade

Landlord applied for MCI rent hikes based on elevator upgrading. The DRA ruled for landlord but later modified its order to disallow the cost of 16 shaftway doors and the elevator consultant's fees. Landlord appealed and lost. Landlord argued that the engineering consultant's fees didn't duplicate the contractor's fees and were incorrectly disallowed. But the consultant was retained to survey the passenger elevator and prepare the upgrade specifications, provide bid analysis, review drawings, conduct weekly on-site observations, and inspect the completed work. And the elevator upgrade contract stated that the contractor before starting work would study and compare drawings, take field measurements of the existing conditions of the elevator, and supervise, be solely responsible for, and have control over construction means, methods, techniques, sequences, and procedures of the elevator upgrade. The contractor was also required to warranty that the work be done in strict compliance with all building rules and regulations and procure governmental certificates of approval. So tenants shouldn't have to pay additional supervisory and administrative expenses such as the architect's consulting fee.

135 West 225th Street: DHCR Adm. Rev. Docket No. WK430032RO (12/27/12) [2-pg. doc.]