NYC RELEASE CAPITAL PROCESS REFORMS

New York City’s Capital Process Reform Task Force released their sweeping 2022 year-end recommendations. STA thanks all involved for this comprehensive set of reforms that will benefit subcontractors and all of New York City. Special thanks to Arthur Rubinstein, who participated in the Task Force and represented STA on our behalf. His update is provided below:

I was honored to be a member of the Mayor’s Capital Reform Task Force, and am very pleased to report on areas for which I (as well as others) advocated that have been adopted as recommendations.

• A new high-level position of Ombudsman will be established at each Agency. The Ombudsman will be available to be of assistance to subcontractors which have unresolved issues; those of us not in contact with the Agency have not previously had the privilege of direct contact with Agency personnel. Also, this will be of value to those who are prime contractors, but unable to resolve their issue with their Agency contact.
• Expansion of mentoring programs to M/WBE subcontractors. I am hopeful that this will provide a mentoring program, through an Agency-retained mentor, to provide assistance to M/WBE subcontractors.
• Endorsement of the STA advocacy for the “Small Contractors Relief Act”, which establishes a pilot program for public-sector backed liability insurance available to M/WBE contractors and subcontractors as well as small non-M/WBE companies. The problems of availability and affordability of liability insurance are well known, and we welcome the City’s assistance in seeking State approval for this important initiative.
• Reform of the change order process. Two significant changes are recommended: First is the expansion of a process called “Expanded Work Allowance“, allowing expedited payments for various types of change orders including unforseen field conditions. Second is a very significant initiative for change orders which cannot be included in the Expanded Work Allowance category; it provides for interim payment, based on an established “minimum cost”, while the change order is being negotiated. Recommendations for streamlining the requisition payment process. This will include streamlining and standardizing invoice checklists; tracking invoices from draft through final approval; and piloting a time commitment to pay within a certain number of days  of the draft invoice.

The recommendations I’ve outlined, as well as others, constitute a major step forward for the NYC Capital Process; when fully implemented and – where necessary – enacted by New York State, will be of great benefit to the contracting community. I also believe that all New Yorkers will benefit.

We owe a debt of gratitude to Mayor Eric Adams, First Deputy Mayor Lorraine Grillo (who recently retired after a long, distinguished career in city government), and the dedicated and capable NYC staff who saw this process to completion.

My thanks to my fellow Task Force members from both the public sector and the private sector, with special thanks to BTEA President and CEO Lou Coletti for his valued support.

The Final Task Report can be found here. I encourage you to review it. Please contact the STA with any questions to ffarber@stanyc.com.