on Feb 23, 2026

Building Trades Employers’ Association (BTEA) releases “Scaffold Law” Economic Impact Study

HR&A Advisors conducted a comprehensive economic impact analysis for the Building Trades Employers’ Association (BTEA) examining how New York’s absolute liability insurance standard affects construction costs across the state. Drawing on proprietary data from 32 sources including leading developers, general contractors, and public agencies such as the MTA and NYC School Construction Authority, the analysis compared insurance premiums in New York to peer states including New Jersey, Massachusetts, and Illinois. The study found that insurance premiums in New York are 200% to 500% higher than comparable states, representing 6% to 8% of development budgets compared to 2% to 4% in neighboring states. The analysis modeled potential cost savings on major projects including Penn Station redevelopment and Second Avenue Subway Phase 2, and examined the impact of current insurance costs on affordable housing development, small contractors and MWBEs, and infrastructure investments across New York.

 

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