Odd Lots How Insurance Costs Make NYC Construction So Expensive
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Feb 26, 2026 The conversation digs into why building in New York City costs so much, focusing on soaring insurance premiums tied to strict liability rules. They explore how delays, design changes, and dense site logistics drive overhead. Fraud, limited insurers, and rising deductibles are highlighted alongside labor shortages, aging trades, and tech that might improve safety and speed.
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Shorten Permitting Timelines To Cut Overhead
- Reduce permit and review timelines to cut indirect project costs and overhead.
- Elizabeth Crowley highlights that shortening land use and environmental review from years to under six months would lower time-based overhead and claims exposure.
Design Mismatches Cause Expensive, Prolonged Delays
- Design errors and mismatches between plans and field conditions generate lengthy change negotiations that pause productive work.
- Michael Capasso explains those pauses keep salaried project staff idled while agencies and contractors litigate and approve contract changes.
Simple Turf Replacement Took Seven Years
- Elizabeth Crowley gave a personal example of a $4 million turf replacement that took seven years to complete after she left the council.
- The delay stemmed from unexpected subsurface repairs, repeated design reviews, and slow agency processes.