Why Construction Costs are Up

In today’s Crains New York Business, Denise Richardson, Executive Director of the General Contractors Association of New York, addresses the multitude of regulatory and compliance requirements which have driven up the cost of construction.

Missing from Crain’s story “Construction boom triggers big jump in building costs” (Dec. 8) are the real costs associated with noise-code compliance, environmental health and safety rules, diesel equipment retrofit mandates, storm-water runoff management and a multitude of other regulatory requirements, not to mention the archaic scaffold law, deemed “New York’s stupidest law” by a Crain’s editorial.

Taken on their own, each new requirement has merit, but their associated compliance costs in totality are being reflected in rising construction costs, along with insurance premiums increasing by an average of 20% this year.

Read the full editorial here

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