Posted by Leonard Steinberg on March 10th, 2013

Everyone is chattering at the rising costs of a New York apartment. What most don’t realize is the dramatically increased costs of land, and worse, the rising costs of insurance during construction. Its time to reform New York state’s infamous scaffolding law. The law, which dates back to the late 1800s, has become a huge insurance headache for contractors who blame it for driving insurance rates to such levels that they are actually forcing up construction costs—and in some cases even stalling projects, according to the industry.

New York has put itself at an economic disadvantage as the only state with a scaffolding law, known as Section 240 of the state’s labor law code. Whereas every other state puts an equal burden on the worker to ensure they are protecting themselves at work, New York places an absolute liability on the developer and contractors.

If a worker falls or is injured by faulty scaffolding, the property managers are held liable regardless of unsafe behavior by the worker. Insurers typically make seven-figure settlements rather than risk an even bigger loss in court, but this has driven up the price of doing business. With New York City already the most expensive construction market in the country, developers and contractors are looking for any opportunity to reduce costs. The cost of doing business in New York is grossly inflated by insurance costs because insurers settle….they don’t go to court….and we have to pick up the tab. Thanks to the lawyers who created and protected this antiquated law for over a century.

Of course workers should be protected:  that should always be a top priority, but the ability to present evidence in a liability case that can exonerate the building site manager if the worker is at fault is critical if we want to be fair.  It is time for all parties to share responsibility.