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
| Jan 23, 2014
Washington state micro apartment law prompts fire safety concerns
Proposed legislation to further regulate the building of micro apartments has triggered appeals from community activists concerned that fire safety standards are sub-par.
| Jan 23, 2014
Pennsylvania owes school districts $1B for construction projects
The Pennsylvania Department of Education owes about $1 billion to numerous school districts for about 350 state-approved renovation and construction projects.
| Jan 23, 2014
About 1,500 concrete buildings in Los Angeles found vulnerable to earthquakes
Some 1,500 concrete structures built in Los Angeles before 1980 could be vulnerable to earthquakes, according to University of California researchers.
| Jan 23, 2014
Low-slope roofs with PVs tested for wind uplift resistance
Tests showed winds can cause photovoltaic panels to destroy waterproof membranes.
| Jan 16, 2014
Bio-based materials could transform the future of sustainable building
Recent winners of the Cradle to Cradle Product Innovation Challenge include a brick made from bacterial byproducts and insulation created from agricultural waste products.
| Jan 16, 2014
The incandescent light bulb is not dead
Despite misleading media reports, January 1 did not mark a ban on the manufacture or import of 60-watt and 40-watt incandescent bulbs.
| Jan 16, 2014
ASHRAE revised climatic data for building design standards
ASHRAE Standard 169, Climatic Data for Building Design Standards, now includes climatic data for 5,564 locations throughout the world.
| Jan 15, 2014
ConsensusDocs releases updated subcontract for federal work
The new version addresses recent changes in federal contracting.
| Jan 15, 2014
First quarter 2014 LEED rating system addenda now available
There are 71 new LEED Interpretations, including 65 for Homes and Multifamily Midrise.
| Jan 10, 2014
What the states should do to prevent more school shootings
To tell the truth, I didn’t want to write about the terrible events of December 14, 2012, when 20 children and six adults were gunned down at Sandy Hook Elementary School in Newtown, Conn. I figured other media would provide ample coverage, and anything we did would look cheap or inappropriate. But two things turned me around.