New York’s ‘Scaffold Law’ under fire for driving up project costs

New York State’s so-called “Scaffold Law,” which makes construction companies 100% liable for work-site injuries, is under heavy criticism for driving up the cost of construction projects.

Critics say the law will inflate the cost of the Gateway project, a new tunnel underneath the Hudson River for Amtrak and NJ Transit, by up to $300 million, according to a report in the New York Daily News. The law costs taxpayers at least $785 million annually and private businesses that work on public projects $1.49 billion per year, according to a study by SUNY Rockefeller Institute.

By consuming more tax dollars, the law has diminished the city’s ability to create more affordable housing, a housing advocate says. Insurance policies have become much tougher for contractors to obtain, a situation so dire that a coalition of builders on Long Island wants the state to declare “an insurance state of emergency.”

The president of the Building and Construction Trades Council of Greater New York says the law has been effective in preventing injuries and saving lives, and challenged critics to prove that the law has hurt companies’ finances.

New York City has two very large buildings dedicated to answering the 911 calls of its five boroughs. With more than 11 million emergency calls annually, it makes perfect sense. The second of these buildings, the Public Safety Answering Center II (PSAC II) is located on a nine-acre parcel of land in the Bronx. It’s an imposing 450,000 square-foot structure—a 240-foot-wide by 240-foot-tall cube. The gleaming aluminum cube risesthe equivalent of 24 stories from behind a grassy berm, projecting the unlikely impression that it might actually be floating. Like most visually striking structures, the building has drawn as much scorn as it has admiration.