New York’s construction industry continues to evolve under the weight of regulation, sustainability mandates, and shifting workforce demographics. This month’s key developments highlight the ongoing impact of the state’s Scaffold Law, new challenges tied to the all-electric building mandate, and persistent pay disparities among women in construction. Together, these stories illustrate how legislation, infrastructure, and labor equity intersect to shape the future of building in New York.
The Scaffold Law: A Costly Legacy for New York Builders
In a recent commentary for Times Union, Claudio Zullo, president of Schenectady Steel Company, reignited debate around New York’s long-standing Scaffold Law, formally known as Labor Law §240. Originally enacted in 1885 to protect construction workers performing elevated work, the law imposes absolute liability on contractors and property owners for gravity-related injuries—regardless of negligence or safety compliance.
Zullo argues that the law no longer serves its original purpose. Instead, it has driven up insurance premiums, increased litigation, and discouraged small contractors from bidding on projects. According to Zullo, these costs inevitably trickle down to taxpayers and project owners, inflating the price of public works and private developments alike.
He calls for federal intervention through measures such as the proposed Infrastructure Expansion Act, which would exempt federally funded projects from the Scaffold Law’s liability provisions. This, he contends, could pressure state lawmakers to modernize or repeal the statute—something construction industry advocates have demanded for years.
Source: Zullo, Claudio. “Commentary: Scaffold Law Hurting N.Y.” Times Union, October 2025.
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Electrification Mandates and Housing Delays
The state’s aggressive decarbonization policies are colliding with construction realities. In his October 15, 2025 report for Spectrum News, Seth Voorhees outlines how New York’s upcoming ban on natural gas and propane hookups in new buildings—part of the All-Electric Buildings Act—is causing project delays across the state.
The law, set to take effect in 2026 for buildings under seven stories, prohibits fossil-fuel-based heating, stoves, and dryers in new construction. Builders warn that the state’s electric grid simply isn’t ready for the additional demand. Developers in the Rochester area, for example, have paused multi-unit projects due to uncertainty about whether utilities can provide sufficient power.
While utilities like Rochester Gas & Electric have announced plans to invest billions in grid upgrades, these improvements could take years to complete. In the meantime, builders face rising costs, stalled permits, and growing anxiety that housing targets will slip further out of reach.
Voorhees’s reporting captures a broader concern among developers: policy timelines are outpacing infrastructure readiness, creating a bottleneck that could deepen New York’s ongoing housing shortage.
Source: Voorhees, Seth. “Gas Ban, Utilities Construction Delay.” Spectrum News, October 15, 2025.
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Women in Construction: Progress, but Pay Gaps Persist
Despite meaningful progress in gender representation, New York’s female construction workforce still faces significant pay inequities. According to an October 2025 WVNews report, female construction workers in New York earn an adjusted average of $58,000 per year, well below many of their male counterparts in similar roles.
The article highlights that while more women are entering construction, they remain underrepresented in higher-paying specialties and supervisory positions. Factors such as unequal access to training, fewer overtime opportunities, and persistent bias continue to limit wage growth for women in the trades.
This pay gap underscores a larger issue: workforce equity remains a major challenge for the industry, even as construction firms emphasize diversity and inclusion. As demand for skilled labor continues to rise, bridging this gap could become both a social and economic imperative for New York builders.
Source: “New York State Female Construction Workers Earn Adjusted $58K Per Year.” WVNews, October 2025.
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From insurance burdens tied to outdated liability laws, to delays caused by electrification mandates, to the ongoing pursuit of wage equity, New York’s construction industry stands at a crossroads. Regulatory and policy decisions are shaping not only the cost and pace of building but also who benefits from industry growth.
As 2026 approaches, industry leaders will be watching whether lawmakers adjust course—by reforming the Scaffold Law, aligning infrastructure investments with energy mandates, and advancing true wage equity in the trades. The success of New York’s construction future may depend on striking that balance between safety, sustainability, and fairness.
John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.
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References
Zullo, Claudio. “Commentary: Scaffold Law Hurting N.Y.” Times Union, October 2025. https://www.timesunion.com/opinion/article/commentary-scaffold-law-hurting-n-y-21100277.php
Voorhees, Seth. “Gas Ban, Utilities Construction Delay.” Spectrum News, October 15, 2025. https://www.spectrumlocalnews.com/nys/rochester/news/2025/10/15/gas-ban-utilities-construction-delay
“New York State Female Construction Workers Earn Adjusted $58K Per Year.” WVNews, October 2025. https://www.wvnews.com/news/around_the_web/states/new-york-state-female-construction-workers-earn-adjusted-58k-per-year/article_8fb373c8-1bb4-58cd-a138-aee831cdf179.html
