Build More New York (BMNY), an advocacy group comprising more than 50 business and civic organizations dedicated to supporting jobs, construction and development across New York, today announced that the regional chambers of commerce of Dutchess, Ulster and Orange counties have joined the coalition. Underscoring BMNY’s commitment to the economic wellbeing of the state, the three chambers support the group’s goal to reform the antiquated, only-in-New York Scaffold Law, which leads to skyrocketing construction costs and stalled development while doing nothing to improve worker safety.
“New York State has not been competitive for business in decades, and that reality has impacted everything from private investment to housing affordability,” said Frank M. Castella, Jr., President & CEO of the Dutchess County Regional Chamber of Commerce. “Supporting the federal preemption provisions in H.R. 3548 and joining the Building More New York coalition is a step in the right direction toward making New York a more attractive place to do business. Reforming the Scaffold Law through this legislation will not only help lower the cost of doing business, but it will also help reduce construction costs that drive up the price of housing and the overall cost of living for our residents.”
“New York’s liability statute dealing with injuries on construction sites doesn’t protect workers and dramatically increases the cost of affordable housing, infrastructure and other construction in our state, ” said Ward Todd, CEO of the Ulster Chamber of Commerce. “New York is the only state in the Union with a law like this. This law increases costs for local governments, school districts, and private sector construction. It is yet another reason why our state is less affordable. The Building Trades Employers Association of union contractors in New York City has reported that the law increases insurance costs by 3 to 5 times those in other states. The law has also inspired a rash of staged construction accident fraud, similar to that we’re seeing with staged auto accident fraud. Federal preemption of this state law on federally funded projects is a common sense solution and hopefully will spur Albany to finally repeal this antiquated law.”
“New York’s outdated Scaffold Law makes our state less competitive and more expensive, driving up the cost of housing, infrastructure, and private construction while burdening local governments, school districts, and businesses,” said Heather Bell, Orange County Chamber of Commerce. “As the only state with this law, New York faces insurance costs reported to be three to five times higher than elsewhere, along with rising construction fraud. Supporting the federal preemption provisions in H.R. 3548 is a practical step toward reform, lowering costs, and making New York more affordable and competitive.”
New York is the only state in the nation that imposes an absolute liability standard on property owners and employers for gravity-related injuries on construction sites. Known as the Scaffold Law, this statute dating back to 1885 holds contractors fully liable for such injuries regardless of fault. In contrast, all 49 other states apply a comparative liability standard that allocates responsibility proportionally. This legal anomaly creates an expensive and unpredictable risk environment unique to New York, raising total construction costs on projects by up to 10 percent. The Infrastructure Expansion Act, introduced by Representative Langworthy as H.R. 3548, offers a targeted solution by ensuring that projects in New York use the same liability standard as in every other state. BMNY urges legislators to federally preempt Scaffold Law and end the blight on New York’s already challenging development environment.
The federal government will provide nearly $80 billion in funding for capital projects in New York State over the next five years, including several prominent projects in Duchess, Ulster and Orange Counties. In Dutchess County, the town of Poughkeepsie recently received $10.5 million in federal funding for a crucial rehabilitation of the historic stone bridge over Fallkill Creek at Washington street. In 2023, Ulster County received $21.7 million through the U.S. Department of Transportation’s (USDOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program to support its waterfront revitalization program known as the Kingston Weaving the Waterfront Transportation Project. Orange County received $17.8 million in federal funding to construct a new bridge to replace the existing, structurally deficient, and flood-prone structure at NY 17A over Long House Creek. Additionally, the $7 billion redevelopment of the Penn Station commuter hub could save between $280 million and $560 million under a more modern liability framework according to the Building Trades Employers’ Association. These valuable projects are made far more expensive due to New York’s Scaffold Law, and taxpayers are wasting precious infrastructure funding on unnecessary insurance costs.
The Scaffold Law affects every category of construction statewide but its impact on housing is especially damaging. High insurance costs reduce project feasibility, shrink the number of units that can be built and push housing prices higher. The Scaffold Law deters job creation, stalls progress, and discourages investment. Reform would free up public funds and accelerate project delivery, including for affordable housing.
Additionally, the law has led to an epidemic of staged accident fraud perpetrated by unscrupulous lawyers and medical professionals, documented by investigative reporters at ABC News. Chubb data from a 2022 report indicates that bodily injury general liability claims greater than $250,000 in value occur in New York more than 30 times more frequently than in other states from 2012 to 2019. This high frequency drives up costs while creating ample opportunities for bad actors to exploit the system.
Reforming the Scaffold Law will support a more efficient and cost-effective construction system in New York. Representative Langworthy’s Infrastructure Expansion Act will create a more sensible liability standard in New York and Build More New York urges representatives to support this bill and champion economic development in the state. Enactment of preemption on federally funded projects may finally force Albany to repeal the scaffold law for all construction activity within the state.
