Negotiating Challenges as Construction Reopens in New York City

New York City has faced one challenge after another in recent months. On the positive side, however, Phase One of reopening begins Monday, and with it the restart of construction. After a three-month delay, with significant distress on everything from financing to staffing, developers face numerous hurdles as they scramble to get back to work and complete their projects.

In Q1 of 2020 alone, applications for 11 million square feet of new construction and about 890,000 square feet of alterations were submitted in New York City. During the crisis, approximately 32,000 non-essential New York City construction sites, including both large-scale construction and smaller renovation projects, were shut down. All of these are now behind schedule and over budget. Although roughly 9,500 sites were deemed essential, they are struggling to stay on schedule and under budget while following social distancing protocols in an industry that requires working in close quarters.