New Report Shows Implementation of Capital Process Reform Task Force Recommendations, Saving Time and Taxpayer Dollars
Thanks to Governor Hochul, New Contracting Tools Will Allow City to Cut Red Tape, Advance Projects Faster, Build Higher-Quality Projects That Create Opportunities for M/WBEs
Comes After Mayor Adams, Building & Construction Trades Council Sign PLAs Enabling Faster, More Efficient Infrastructure Work, Ensuring Projects Create Good Union Jobs
New York City Mayor Eric Adams today released a new report showing significant progress in reforming how public infrastructure is constructed across the five boroughs and celebrated New York Governor Kathy Hochul’s signing of legislation last week that enables the city to cut red tape and deliver projects faster and more efficiently for New Yorkers. The report outlines how the city has fully implemented, or is in the process of implementing, 100 percent of the Capital Process Reform Task Force’s 39 recommendations, made in 2022, to more efficiently deliver public infrastructure across New York City. The legislation Governor Hochul signed today — sponsored by New York Senator Leroy Comrie and New York Assemblymember Ed Braunstein — will build on that progress by expanding the city’s ability to use progressive design-build and construction manager build — two contracting models which cut time-consuming and expensive steps out of the outdated design-bid-build model, resulting in faster, more efficient project delivery. Governor Hochul also signed legislation — sponsored by New York Senator Luis Sepulveda and New York Assemblymember Jenifer Rajkumar — which will allow New Yorkers to submit comments on procurements over $100,000 online as opposed to requiring an in-person hearing; this will save an average of 20 days on every applicable project timeline.
“If it seems like city construction projects take forever, and your street has been cracked open for years on end, there’s a reason why: archaic rules here in New York, that have been eliminated nearly everywhere else in the country, mandate that we go at a snail’s pace,” said Mayor Adams. “New Yorkers deserve better — and thanks to our Capital Process Reform Task Force and Governor Hochul, we’re delivering just that. The legislation Governor Hochul signed will let us cut a full year off of hundreds of project timelines, saving taxpayers millions in the process. Our Task Force has found dozens of additional ways to help us build faster, better, and more efficiently, and we’re moving forward on all of their recommendations. This means more projects done on time, done on budget, and best of all — done.”
“From the moment I took office, I have been focused on cutting red tape to speed up investment in our communities,” said Governor Hochul. “Signing alternative delivery into law allows the city to streamline projects, eliminating the unnecessary obstacles that stand in the way of creating more community investments and good-paying jobs.”
“As we make these common-sense reforms, the real winners are everyday New Yorkers. While they may never learn the names of the hard-working civil servants who made this possible or understand how long this journey took, they will see transformational civic projects being delivered faster, with less interruption to their lives,” said Deputy Mayor for Operations Meera Joshi. “The old system of announcing a project — and then waiting years upon years — is finally a thing of the past.”
“A new era of great public works is becoming possible again for New York City,” said New York City Department of Design and Construction (DDC) Commissioner Thomas Foley, national board chair, Design-Build Institute of America. “We have shown what we can accomplish when we get the tools we need: delivering world-class public buildings and infrastructure years faster through our inaugural design-build program and building critical facilities in record time for New Yorkers in emergencies. Thanks to this bill, it will no longer take an emergency to use common-sense tools like CM-build. We have already started laying the groundwork to expand our award-winning alternative delivery program to New York City’s libraries, cultural institutions, and critical resiliency infrastructure, and we look forward to releasing our first solicitations in early 2025.”
“These reforms will help New York City complete large-scale infrastructure projects more quickly and at lower costs,” said New York City Department of Transportation Commissioner Ydanis Rodriguez. “Practices like design-build can transform the city’s construction process and help us build better for New Yorkers across the five boroughs. We are grateful for the leadership of Mayor Adams and Governor Hochul, and for the partnership at the state legislature for these tools to create a more efficient capital construction process.”
“Building the infrastructure that will protect New Yorkers from our changing climate, including the flooding that threatens public safety and property, just got a tremendous boost that will cut costs and deliver the projects more quickly,” said New York City Chief Climate Officer and New York City Department of Environmental Protection Commissioner Rohit T. Aggarwala. “These new tools will be put to use on the ongoing $2.6 billion work to build a comprehensive drainage system in southeast Queens, as well as other sewer upgrade projects across the five boroughs that are critical to keeping New Yorkers safe.”
“From public restrooms to recreation centers, NYC Parks maintains a network of vital living infrastructure that helps New Yorkers get active, connect with their neighbors, and enjoy all the mental and physical health benefits of time outside,” said New York City Department of Parks and Recreation (NYC Parks) Commissioner Sue Donoghue. “Thanks to design-build contracting, we’re able to provide these resources to New Yorkers faster and more efficiently. With projects like the new Shirley Chisholm Recreation Center in East Flatbush, which will provide an affordable place to work up a sweat, and our investments in resiliency and greenway access along Manhattan’s East Side waterfront, alternative delivery is helping us make our city more accessible, green, and livable.”
“New Yorkers feel the impact of inefficient public construction every day, from delayed library and playground projects to years-long street closures. It doesn’t have to be like this,” said New York City Chief Delivery Officer Alison N. Landry, AIA. “Two years ago, the task force made a commitment to change the entire capital project delivery system to modernize aging infrastructure and meet demands of a changing climate. We're implementing every single recommendation, with common-sense changes to save time and money while enabling agencies to build more efficiently, collaboratively, and inclusively. With the laws signed by Governor Hochul, we'll modernize the contracting process and shave years off projects like library renovations and resilient infrastructure. I am proud to share the work we’re doing to build better and grateful to the committed partners working across and outside government to put these improvements into practice, delivering results for New Yorkers.”
The Capital Process Reform Task Force was formed by Mayor Adams in April 2022, and it is led by Deputy Mayor Joshi and Chief Delivery Officer Landry. It is comprised of a group of leaders representing the construction industry, labor, and minority- and women-owned business enterprises (M/WBEs) and tasked with undertaking a top-down review of the city’s capital process and recommending reforms, from project initiation to closeout. The reforms recommended by the task force and implemented by the city are improving scoping and planning, cutting down project initiation time, removing redundant reviews from procurement, increasing M/WBE participation, managing projects more effectively, cutting down on change orders, standardizing and streamlining invoicing and payment, improving the delivery of projects for libraries and cultural institutions, and supporting implementation of a citywide capital project tracker.
Specific reforms include:
- Consolidating design and construction procurements that, historically, were required to be separate, per state law, and added years to project timelines. The task force has already begun implementing its limited existing authority to consolidate those two procurements into one for permissible projects through design-build delivery; the legislation signed by Governor Hochul today greatly expands the city’s authority to avoid that archaic procurement process.
- Enabling electronic bidding, modernizing the bidding process towards a single digital system to submit and track construction bids that, historically, were required to submit paper bids — a resource-intensive and error-prone process. The task force championed a 2023 law that enables electronic bidding.
- Identifying obsolete and conflicting requirements related to invoicing and payment processes that, historically, required city agencies to have different processes, making it difficult for contractors that work across agencies. The changes by city capital agencies are being made based on the task force’s recommendation, and these agencies are now engaging with each other and industry stakeholders to share those updates before a new, unified process formally launches next year.
DDC’s pilot design-build program has already accelerated and improved generational projects across New York City. The new $141 million Shirley Chisholm Recreation Center that DDC is building for NYC Parks will offer a host of programming and amenities to encourage learning, recreation, and community and civic engagement, including multipurpose rooms; a gymnasium; a walking track; a media lab; an indoor swimming pool; fitness, strength, and cardio rooms; and a teaching kitchen. Using design-build, DDC anticipates completing the project at least two full years faster than originally planned and with a savings of at least $2.4 million. The $92 million Mary Cali Dalton Recreation Center in Staten Island is also being built using design-build and is anticipated to be completed at least two years faster.
The report comes after Mayor Adams secured two Project Labor Agreements (PLAs) with the Building & Construction Trades Council of Greater New York (BCTC) last week that will cover more than $1 billion in construction projects throughout the term of the agreements, including generational infrastructure improvements in Willets Point. These historic agreements will allow $800 million in planned infrastructure projects across the city to be completed using design-build delivery. The PLAs will also allow the city to complete capital projects more effectively and efficiently, connect more underserved New Yorkers to quality union career and apprenticeship opportunities through community hiring, and strengthen the city's commitment to M/WBEs. Finally, the PLAs establish the framework for future negotiations with the BCTC for upcoming PLAs that could cover as much as $50 billion of future capital construction projects.
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