The Real Estate Roundtable (RER) and a coalition of real estate, construction, and insurance organizations urged congressional leaders this week to include the Infrastructure Expansion Act (H.R. 3548) in upcoming surface transportation legislation. The bill would prevent property owners, contractors, and insurers from facing automatic liability in lawsuits tied to federally funded infrastructure and transportation projects. (Letter, May 6)

Why It Matters

• The coalition warned that New York’s “Scaffold Law” imposes an absolute liability standard on property owners and general contractors for gravity-related worksite injuries, regardless of fault, worker conduct, or safety precautions taken by responsible employers.

• Unlike New York, every other state uses a comparative negligence standard that allocates responsibility based on the conduct of all parties involved. (Yahoo, April 6)

• H.R. 3548 would apply a uniform national liability standard to federally funded infrastructure projects, helping ensure federal tax dollars are used efficiently for roads, bridges, transit, and other projects critical to economic growth and competitiveness.

• The coalition letter estimates the bill could save up to $2.3 billion in the Highway Trust Fund over five years by preempting New York’s absolute liability standard on federally funded projects. (Letter, May 6)

Cost Impact

• The letter states that insurance costs in New York are typically double those in other states, with many insurers withdrawing from the construction market because of the open-ended exposure created by absolute liability.

• According to a report from the Building Trades Employers Association, estimates that reforming New York’s liability standard could save taxpayers $280-$560 million for the Penn Station redevelopment and $550-$880 million for the Port Authority Bus Terminal project.

• Shifting every $100 million from insurance costs back into productive infrastructure investment could support roughly 600 full-time jobs. (Letter, May 6)

Roundtable Advocacy

• RER has long supported federal legislation to address the cost and liability impacts of New York’s Scaffold Law on federally assisted infrastructure projects.

• In 2018, RER and a broad coalition of contracting, insurance, and real estate organizations urged Congress to pass an earlier version of the Infrastructure Expansion Act, sponsored by former Rep. John Faso (R-NY). (Roundtable Weekly, Jan. 2018 | Feb. 2018)

As Congress considers the next surface transportation package, RER and its coalition partners will continue urging policymakers to advance commonsense reforms that protect taxpayer dollars and help move critical infrastructure projects forward.