The High Cost of Development
Building public infrastructure in New York City is extraordinarily expensive, mostly because of extravagant union contracts and the maintenance of prevailing-wage laws. But private construction in New York is also very expensive, driven largely by powerful unions that demand lavish pay and control over project scheduling. Competition from nonunion firms is increasing, but the city’s labor environment remains adverse to development.
The Facts You Need to Know
Schedule: A fraud-related lawsuit connected with construction at Hudson Yards alleges that a union worker was paid $600,000 for working 365 consecutive 12-hour days. Read more.
Boss: In New York City’s unionized construction industry, contractors and subcontractors overlap, resulting in obscured lines of authority and responsibility. Read more.
Staffed: Unions insist on overstaffing construction projects, increasing costs with no added productivity. Read more.
“Spending an extra $100 million here and there because of excessive labor costs is daunting, even in New York.”
Here's my favorite (?) part in which the city basically admits to being in on the NYC construction cost scam.— Second Ave. Sagas (@2AvSagas) August 30, 2018
Also, this is going to cost $2.7 billion and only about half of that will be through value capture (rather than all, as initially suggested). pic.twitter.com/zk4g0nlfsK
The Past is Present
“New York City’s problems call for fundamental reforms. Here’s an agenda for making the city work.”
And in other news...
“New York Gov. Andrew Cuomo descended into the Hudson River rail tunnel late Wednesday night to showcase the deterioration of the tubes that carry hundreds of thousands of daily commuters across the Northeast—and to press President Trump for federal support to fix them.”