As Sandy gives construction industry a boost, cost of city projects grow

TRD New York /
Nov.November 13, 2012 09:00 AM

City plans to pump $1 billion into city infrastructure projects are being radically altered by the affects of Hurricane Sandy, Crain’s reported. Last October, when the stimulus was announced, the funds were intended for waterfront construction, road and bridge repairs and street construction at a time when construction costs were at a relative low. Now with some 70,000 homes in need of repair, the cost of building materials like plywood and drywall has risen nearly 15 percent  — making construction more costly for the city.

Moreover laborers are being stretched across thousands of repair projects. “Every union member is working,” Lou Coletti, president of the Building Trades Employers’ Association, which represents 17,000 union contractors, said.

According to Crain’s, Coletti’s phone lines have been flooded with calls from contractors who want to participate in the city’s “rapid repairs” program — a FEMA program that pays for contractors to do work on salvageable homes.

Mayor Bloomberg announced yesterday that the city will spend some $500 million on schools and hospitals repairs alone, according to DNAinfo. The money will go to repairing broken boilers, electrical systems, roofs, backup generators  at 37 schools and three public hospitals that were shuttered by Hurricane Sandy.

“To our knowledge, New York City government has never before made such an emergency provision for additional capital spending because of a natural disaster, and certainly never one of this size,” Mayor Michael Bloomberg said Monday. “But our city, I think it is fair to say, is experiencing a storm as destructive as Sandy was and we’ve never done that before.” [Crain’s and DNAinfo]Christopher Cameron

 

Related Articles

arrow_forward_ios
TRD's Erik Enguist and Port Authority's Rick Cotton

Port Authority, out $3B, has waterfront land to sell

Port Authority, out $3B, has waterfront land to sell
Fairway at 480-500 Van Brunt Street in Red Hook and the O’Connell Organization's Greg O’Connell (Credit: Google Maps)

Fairway landlord: Private-equity owners ruined Red Hook store

Fairway landlord: Private-equity owners ruined Red Hook store
Mayor Bill de Blasio and subway damage caused by Hurricane Sandy (Credit: Getty Images)

Program to rebuild Sandy-damaged homes needs extra $92M

Program to rebuild Sandy-damaged homes needs extra $92M
Army Corps of Engineers Commander Lt. Gen. Todd Semonite and flooding caused by Hurricane Sandy in 2012 (inset) (Credit: Getty Images)

A $119B seawall still might not protect Manhattan, critics say

A $119B seawall still might not protect Manhattan, critics say
Plans for NYC’s storm-surge barrier raise environmental concerns

Plans for NYC’s storm-surge barrier raise environmental concerns

Plans for NYC’s storm-surge barrier raise environmental concerns
This is how Miami-Dade plans to protect itself from climate change

This is how Miami-Dade plans to protect itself from climate change

This is how Miami-Dade plans to protect itself from climate change
Swedish private equity firm closes huge infrastructure fund

Swedish private equity firm closes huge infrastructure fund

Swedish private equity firm closes huge infrastructure fund
These two real estate execs bailed on Gov. Cuomo’s Gateway tunnel tour

These two real estate execs bailed on
Gov. Cuomo’s Gateway tunnel tour

These two real estate execs bailed on
Gov. Cuomo’s Gateway tunnel tour
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...