Corruption is common in the New York City construction market, according to a report in The Real Deal.
The real estate industry publication says the city’s $45.3 billion construction market suffers from a lack of oversight. So, some property managers, suppliers, and subcontractors are able to inflate line items or overbill because nobody is likely to spot these practices.
The sheer size of the market makes it easier to hide from oversight, the publication says. Small contractors and property management companies often don't have the financial resources to closely monitor the situation or implement tough compliance programs.
Large contractors often write off costs associated with corrupt practices as a business expense. The industry’s project management practices are mostly unregulated, and there is resistance to self-policing.
Related Stories
Codes and Standards | Nov 29, 2016
New OSHA rules to reduce fall and trip hazards
Employers can choose from a variety of fall protection systems.
Codes and Standards | Nov 29, 2016
Seattle imposes new construction regulation to address rat problem
The city ranks first in U.S. in rat population.
Codes and Standards | Nov 28, 2016
Construction groups sue New York City over crane safety regulation
The rule bans cranes from operating when wind exceeds 30 mph.
Codes and Standards | Nov 28, 2016
Marines plan first net zero energy military base
The Albany, Ga., site will have ground source heat pumps and a biomass generator.
Codes and Standards | Nov 18, 2016
Mahesh Ramanujam takes reins as U.S. Green Building Council President and CEO
Ramanujam brings his tech and business consulting background to the post.
Codes and Standards | Nov 18, 2016
Canada GBC launching Zero Carbon Buildings Initiative
First step toward Zero Carbon Building Standard.
Codes and Standards | Nov 17, 2016
Santa Monica, Calif., passes historic net-zero ordinance
Includes more stringent commercial, multifamily building standards.
Codes and Standards | Nov 14, 2016
Six more states approve legal marijuana, creating opportunities for developers
Federal prohibition complicates the picture.
Codes and Standards | Nov 14, 2016
Los Angeles voters approve billions to tackle traffic and homelessness
The approved measures will create new rail lines and permanent housing.
Codes and Standards | Nov 9, 2016
NRMCA updates environmental impacts of concrete
The EPD now includes 88 companies, 72 mixes.
