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 | Apr 18, 2016
ASHRAE releases proposed energy standard for historic buildings
Designed to balance with preservation requirements.
Codes and Standards | Apr 13, 2016
Canadian city fines itself for failing to get a building permit for building renovation
Guelph, Ontario, will pay a $1,125 fine to the province.
Codes and Standards | Apr 12, 2016
Construction trade groups sue OSHA over silica rule
Cite concerns about technological and economic feasibility.
Codes and Standards | Apr 11, 2016
New LEED 2009 projects will have to meet increased minimum energy performance
New requirements went into effect April 8.
Wood | Apr 8, 2016
New LEED Pilot ACP designed to help eliminate irresponsibly sourced materials
Illegal wood is primary target to restrict illicit material in the supply chain.
Lighting | Apr 5, 2016
Lighting requirements for high-rise dwellings proposed for energy standard
The requirements would effectively eliminate incandescent and halogen bulbs.
Steel Buildings | Apr 4, 2016
AISI publishes Cold-Formed Steel Framing Design Guide, 2016 Edition
Updates 2007 edition; includes five comprehensive design examples.
Data Centers | Apr 1, 2016
ASHRAE releases publication on the impact of IT equipment on data center design
The book offers advice for designing structures in the fast-changing data center industry.
Codes and Standards | Mar 28, 2016
Occupant egress simulations that impact codes fall short, researchers say
Building evacuations in emergencies are too dangerous as a result.
School Construction | Mar 28, 2016
National report on school buildings reports $46 billion annual funding shortfall
Millions of students said to be learning in obsolete facilities.