Facing an aging workforce, contractor CAC Industries converted to a 100% employee-owned company (ESOP). Unusually, they included collectively bargained union tradespeople in the plan, not just office staff, creating a powerful incentive for talent retention in a competitive market.
Public agencies increasingly hire third-party consultants as 'owner's reps' to manage projects. Contractors report these reps can become a source of delays, as their compensation is tied to the project's duration, creating a misaligned incentive that inflates costs and timelines.
Project delays aren't just about lost time; they generate tangible costs. Contractors must continue paying salaries for project managers, supervisors, and safety personnel who are assigned to the stalled project and cannot be reassigned, leading to significant 'indirect overhead' claims.
Insurers like Zurich now require AI-powered cameras on NYC job sites. The AI analyzes daily footage to identify dangerous movements and near-misses, not for live surveillance, but to provide data for correcting worker behavior, improving safety protocols, and reducing future incidents.
New York's absolute liability standard holds contractors 100% at fault for height-related injuries, regardless of worker negligence. This drives insurance to 10% of project costs, compared to just 2% elsewhere, as insurers flee the state or charge exorbitant premiums.
On public works projects in NYC, union wages are aligned with city and state prevailing wage laws. This means both union and non-union contractors must pay similar rates for public projects, countering the common narrative that high costs are primarily due to a 'union premium.'
As insurers exit New York due to the 'Scaffold Law,' remaining carriers dictate terms. This has caused a massive spike in deductibles for contractors, from around $25,000 in the past to as high as $750,000 per occurrence today, forcing firms to self-insure a huge portion of risk.
The term 'Scaffold Law' is misleading. It's an absolute liability law for any height-related injury. A worker falling six inches from a secured ladder in a trench can trigger a claim where the contractor is 100% liable, drastically expanding its scope beyond high-rise work.
Despite having the nation's strictest liability standard (the 'Scaffold Law'), New York's construction industry has a higher fatality rate than the national average — 12 per 100,000 workers versus under 10. This data challenges the primary argument that the law enhances worker safety.