Joe Wiesenthal and Tracy Alloway host Elizabeth Crowley, President and CEO of the Building Trades Employers Association (BTEA), and Michael Capasso, President and CEO of CAC Industries, Inc. Crowley represents over 1,200 contractors building New York's infrastructure worth $65 billion annually, while Capasso runs a public works contractor serving agencies like the MTA and Port Authority.

The conversation explores why construction costs are extraordinarily high in New York City, examining factors from insurance premiums to regulatory delays. The discussion reveals how New York's unique scaffold law creates absolute liability for contractors, driving insurance costs to 10% of project budgets compared to 2% in other states.

Key topics include the impact of environmental review processes that can extend projects by years, the role of consultant delays, and emerging technologies like AI-powered safety monitoring. The guests argue that regulatory reform, particularly around insurance liability, could save hundreds of millions on major infrastructure projects.

The Hidden Costs Beyond Labor in NYC Construction

Labor represents only 30-35% of total construction costs, contradicting assumptions that union wages drive high expenses - Michael

Public works contracts are subject to prevailing wage laws, making union rates comparable to required city and state wage standards

Transportation costs are built into contracts as most manufacturing occurs outside the five boroughs, with freight carriers making fewer daily deliveries to NYC than other regions

Historical context from New York A Documentary Film shows steel moved rapidly from Bethlehem Steel Mill to build the Chrysler Building, contrasting with today's slower logistics

New York's Scaffold Law Creates 500% Insurance Premium

New York contractors pay 10% of total construction costs on insurance versus 2% in other expensive states like California - Elizabeth

The scaffold law creates absolute liability for any height-related injury, even falling six inches from a ladder in a sewer trench - Michael

Illinois was the last state to reform absolute liability in 1995, and saw construction fatalities decline after implementing comparative negligence

Subcontractors face the worst impact, paying 15-20% of total work volume on insurance premiums due to their smaller size

Bodily injury settlements under scaffold law are 6.5 times higher than average claim settlements in New York

Insurance Market Collapse and Fraud Concerns

Insurance carriers are exiting New York entirely, with Zurich now only writing large wrap-up projects and excluding small contractors

Contractor deductibles have risen from $25,000 thirty years ago to $750,000 per occurrence today - Michael

Tradesman Insurance invested $16 million in fraud investigations and saved over $2 billion by getting fraudulent claims dropped

One law firm handling 300+ cases reportedly closed after widespread claim dismissals due to fraud investigations

Out-of-state contractors avoid New York projects because their insurers exclude coverage, requiring expensive site-specific policies

Regulatory Delays Add Years to Simple Projects

Environmental review processes that should take months often extend 5+ years, with Mayor Adams pledging to reduce land use approvals from 2 years to under 6 months

A simple turf replacement project funded in the budget took 7 years to complete due to design reviews and surface repair discoveries - Elizabeth

Design errors in bid documents create change orders requiring lengthy approval processes through Controller's office or agency boards

Project staff including managers, supervisors, and safety directors remain assigned during delays, creating indirect overhead costs that compound - Michael

Technology and Future of Construction Safety

AI-powered cameras analyze daily footage to identify dangerous movements and near-misses, with Zurich Insurance requiring this technology for New York projects

The $1.3 billion East Coast Resiliency project uses AI camera systems for both safety monitoring and workforce training through captured video

Caterpillar has developed technology allowing one operator to control four different machines from multiple locations using arcade-style controls - Michael

Robotic systems for tasks like rebar tying are emerging, though not yet widely adopted in the industry

Workforce Challenges and Employee Ownership Models

An aging workforce and declining interest in vocational training among younger generations creates ongoing labor availability concerns

CAC Industries converted to 100% employee ownership including unionized trades workers, an unusual ESOP structure designed to retain talent - Michael

Non-union construction sites account for 80% of workplace injuries despite representing less work volume, highlighting safety differences

Infrastructure contractors frequently compete for skilled workers by recruiting from each other due to labor scarcity