The city’s School Construction Authority is set to lose $140 million from its budget by the end of the year due to rising costs related to the so-called scaffold law, which requires the agency to carry hefty accident insurance.
The SCA is required to cover the costs of workers’ possible injuries, the estimated price of which has spiked in recent years. Under the roughly 100-year-old Labor Law 240, often deemed the scaffold law, developers are responsible for all liability for accidents on a building site. And similar budget shortfalls could affect other city agencies that deal with construction costs. [more]