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Hudson Yards Will Be Built By... California Company

You know how the city pushed the Hudson Yards mega-development plan, saying it would be good because it would, besides creating retail, commercial and residential space, bring in tons of construction jobs? Well, now it turns out that Related, the development company who is building it all (including a 51-story skyscraper), has hired a huge California firm as the main contractor. As the Post reports from a Crain's article, "An outfit the size of Tutor Perini doesn’t need to subcontract work to third parties because it owns companies that can perform tasks such as concrete placement and electrical work, while local developers have to outsource the business."

Apparently Related wanted to keep costs down and going with city contractors and unions, which had negotiated last year, would have made that difficult. “I think it’s an aggressive move,” Steven Spinola, president of the Real Estate Board of New York, told Crain’s. “Bringing another significant company like this into the city is positive for competition.”

A press release from Related said last year, "Over 20,000 construction jobs will be generated by the construction of the Coach Building. Over 100,000 construction jobs will be generated by development of the Eastern Railyard (including over 80,000 direct jobs) and over 10,000 permanent new jobs will be generated upon completion of both yards, which will also serve as home to 30,000 office workers."

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Comments [rss]

  • This is good news. More competition is good.

  • luke_1

    "More competition" is a buzzword used when there isn't any better buzzword available.

    The only problem here is that they're screwing over unions. One would think there would be a clause somewhere that stipulated the use of local labor, working conditions, etc.... Hudson yards has sort of been a big deal. Of course we're on to Atlantic yards now, aren't we?

  • Inconcievable de Impublishable

    Time to unionize, Related workers.

  • Oh let's all get up in arms about "outsourcing" construction jobs to a California firm. You can't mix  concrete in California and ship it wet to New York; that will happen within half an hour of the job site because concrete cures after that. The steel isn't going to be welded in California and airlifted in on a massive helicopter; that work will all be done here too.  In fact, all the construction that would happen with local construction companies will still happen here. And while California might be on the west coast, that's still the United States. The California based construction company will still use American dollars and pay (nominal) taxes to the United States government. Its not like the money invested in this project become Renminbi overnight. 

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