When considering New York construction projects, The ALS Group is “in a New York State of mind,” to quote Billy Joel. New York’s Scaffold Law Sections 240/241, more commonly referred to as Scaffold, Ladder and Working at a Height Statute, was designed to prevent untimely falls, a leading cause of catastrophic injury and death.
This archaic 1885 law holds contractors and property owners absolutely liable in lawsuits for all fall-to-surface injuries. Organizations cannot use any comparative negligence defense in scaffold law claims regardless of any contributing fault by the worker.
This law comes with a huge price tag. It creates not only an additional cost to projects, but may also present a lost opportunity – the choice to build or not to build. Experts estimate increased costs at $100 M in respects to the Tappan Zee Bridge Project .
Increased costs also have a profound effect on educational issues. The Lawsuit Reform Alliance of New York cites a Rockefeller Institute study that finds the scaffolding law diverts critical funds away from the New York educational system to finance insurance premiums. New York schools are, of course, desperately in need of repairs and upgrades.
Business owners and risk managers must also consider the cost ramifications of the Scaffold Law when budgeting for project bids. The law has an adverse impact on the ability of small contractors to competitively bid projects, severely limiting competition.
With this law still in effect, contractors must continue to improve their health, safety and risk management programs and ensure their contract provisions address this issue. Contractors should also pay particular attention to subcontractor insurance requirements.
With the construction industry so vital to the New York economy, it is critical that the insurance industry and political community address this issue.
About the Author
John Mooney is the Consultant with The ALS Group. Click here to request more information about The ALS Group or for help with developing a risk mitigation strategy and improving safety and risk management programs.
