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Association News - April 2003

Chancellor Klein Outlines
Plan to Improve Schools

Major reforms being enacted by the Bloomberg administration will result in more efficient, better quality and less expensive school construction projects, New York City Department of Education Chancellor Joel Klein told members of the New York Building Congress Inc. during its annual luncheon meeting that was cosponsored by New York Construction News.

Klein said the goal of the Bloomberg administration is to bring down the cost of construction from its current rate of $438 per sq. ft. to $325 per sq. ft., adding, "I think, quite frankly, we can do much better than that. We all know there are ways to stimulate competition."

The school construction reforms outlines by Klein include:

  • Merging the New York City School Construction Authority (SCA) and the Department of Education's Division of School Facilities (DSF) which, prior to 2002, had overlapping responsibilities and little to no coordination.
  • Creating one clear line of authority and accountability in the city's school construction process, with a single entity overseeing all capital planning, budgeting and operations.
  • Reducing administrative overhead by decreasing headcount at the SCA by 50 percent. As Klein noted, "We would rather squeeze limited funds into school construction than the bureaucracy."
  • Promoting competition through streamlining the prequalification process, simplifying specifications and actively recruiting the city's best construction firms.

"The action being taken ... will bring down school construction costs by creating accountability and increasing the number of competitive bidders engaged in the school construction process," Klein noted.

NYSBA Supports Senate
Response to Budget Crisis

The New York State Builders Association (NYSBA) said they support the Senate's response to the New York State budget crisis. The Senate's response will focus on areas that will save New Yorkers money, according to NYSBA. One area in particular is tort reform, which NYSBA said will save approximately $1 billion annually.

"We are pleased that Senate Majority Leader Joseph Bruno has chosen to take the necessary action to help fill a multibillion dollar gap. Addressing the liability insurance crisis not only benefits builders but taxpayers as well," said Philip LaRocque, executive vice president, NYSBA. "We are encouraged by his announcement and will dedicate all of our resources to this important cause."

A part of a broader package, the tort reform portion of this Senate budget seeks to change Section 240 of the New York State Labor Law from an absolute liability standard to a negligence standard. Under the current law, a builder is absolutely liable for any injury on their worksite even if a worker has ignored safety training and contributed to his or her own injury.

AGC N.Y. Chapter Elects
Delaney As 2003 Chairman

The New York State Chapter Inc., Associated General Contractors has elected Timothy Delaney, founder and president of Delaney Construction Corp., Mayfield, N.Y., as its 2003 chairman at its 77th annual meeting.

As chairman, Delaney will be charged with leading the statewide association of highway contractors and its associates during a year in which New York Governor George Pataki is proposing a $100 million cut in the New York State Department of Transportation's capital program, according to chapter officials.

In addition the federal six-year highway plan, known as TEA-21, will be up for renewal.

Also elected to serve on the 2003 New State Chapter, AGC Executive Committee are: First Vice President Jeffery DiStefano, vice president, Harrison & Burrowes Bridge Constructors Inc.; Second Vice President William Mascetta, area manager, Granite Halmar Construction Co. Inc.; Treasurer Frederic Stutzman, vice president, Hudson River Construction Co. Inc.; and Assistant Treasurer Daniel Hogan, president, Crane Hogan Structural Systems Inc.

Delaney also appointed Robert Doucet, vice president of northeast operations, Barrett Paving Materials Inc., director-at-large.

ARTBA Commends
Congressional Approval

The American Road & Transportation Builders Association commended the members of the House and Senate for its work on maintaining a $31.6 billion level of investment in the nation's highways.

ARTBA President Pete Ruane said that it will protect 190,000 jobs and urged President Bush to sign the final measure into law.

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