Corey Johnson’s MTA reform plan targets controversial Scaffold Law

Plan criticizes the law for driving up construction insurance costs

New York /
Mar.March 11, 2019 09:30 AM

City Council Speaker Corey Johnson under a sidewalk shed (Credit: I’m Just Walkin’ and Getty Images)

City Council Speaker Corey Johnson’s plan to reform the MTA would include changing the city’s Scaffold Law, which places 100 percent of the liability on owners and contractors for workplace injuries.

Johnson’s plan says the law increases costs to cover negligence lawsuits, claiming that the cost of insuring a New York construction project is 10 times higher than insuring construction projects in other states, according to the New York Post.

Other states use a “comparative negligence standard” to determine whether injuries are the fault of workers or contractors, and Johnson’s plan calls on New York to adopt a similar standard.

The law has faced criticism before, but efforts to revise it at the state level have not gone anywhere thanks to opposition from trial lawyers and construction trade unions, along with their allies in the legislature.

Johnson’s MTA plan calls on the city to run subway and bus services, and it says that the Scaffold Law has caused the agency’s insurance costs to rise to “7 percent of contracted construction value.”

The plan says that, because of this, construction insurance companies “have either left New York altogether, reducing competition and increasing prices, or have remained while increasing premiums, which are passed on to all contracting entities.” [NYP] – Eddie Small


Related Articles

arrow_forward_ios
Risa Heller and Jonathan Rosen launched NY Forever earlier this week. (Risa Heller, Berlin Rosen)
Civic boosterism gets big backing from real estate
Civic boosterism gets big backing from real estate
Lewis Road Residential Planned Development (Pine Barrens, iStock)
Big golf, resi project in East Quogue approved
Big golf, resi project in East Quogue approved
From left: BSA chairwoman Margery Perlmutter, DRAW Brooklyn founder Alexandros Washburn, New York City Council Member Carlos Menchaca with renderings of the project (Photos via the City of New York, LinkedIn and Arquitectonica)
How a Red Hook developer circumvented the City Council
How a Red Hook developer circumvented the City Council
The bus terminal was built in the 1950s and designed to serve one fourth of the riders it sees today. (Getty)
Port Authority to raze, replace “hell on earth” bus terminal
Port Authority to raze, replace “hell on earth” bus terminal
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
Will Catsimatidis switch parties? (Getty)
Republican or Democrat? Catsimatidis picks his poison
Republican or Democrat? Catsimatidis picks his poison
Vijay Dandapani, president & CEO, Hotel Association of New York City (Getty)
Hotel owners ask NY for break on tax penalties
Hotel owners ask NY for break on tax penalties
NAR's Vince Malta (Photos via NAR; Pixabay; iStock)
NAR suspends federal political donations after Capitol attack
NAR suspends federal political donations after Capitol attack
arrow_forward_ios

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

Loading...