Engineering Service Cost Disallowed

January 21, 2016

LVT Number: #26725

Landlord applied for MCI rent hikes based on pointing and waterproofing, new roof, parapets, bulkhead, scaffolding, and engineering services. The DRA ruled for landlord in part but disallowed the cost of the south parapet wall, portions of the pointing and waterproofing costs, and engineering service costs. Landlord appealed and won, in part. The pointing and waterproofing costs had been disallowed in error and were reinstated. But the engineering services weren’t necessary or customary for new roof and parapet installations, and the work wasn’t exceptionally complex.

Landlord applied for MCI rent hikes based on pointing and waterproofing, new roof, parapets, bulkhead, scaffolding, and engineering services. The DRA ruled for landlord in part but disallowed the cost of the south parapet wall, portions of the pointing and waterproofing costs, and engineering service costs. Landlord appealed and won, in part. The pointing and waterproofing costs had been disallowed in error and were reinstated. But the engineering services weren’t necessary or customary for new roof and parapet installations, and the work wasn’t exceptionally complex. That cost was properly disallowed.

 

 

R 18 North Moore LLC: DHCR Adm. Rev. Docket No. XK430006RO (11/20/15) [3-pg. doc.]

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