In the battle for Hudson Yards, it’s California 1, New York O.
Seeking cost savings on the $4 billion West Side megaproject, real estate developer Related Cos. has turned to Tutor Perini Corp. as its main contractor, according to a Crain’s New York Business report.
The surprise move to bring in the West Coast firm could have big ramifications for others looking to cut down on union and contractor pricing power in the Big Apple.
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, Crain’s said in a report.
The fresh deal wipes out agreements with unions and contracts negotiated last summer. The hiring also may alter what many developers see as an industry whose costs are kept high by New York-based contractors and builders’ unions.
Work on the Hudson Yards project is expected to begin in earnest this year. The commercial-residential development area borders West 42nd and West 43rd streets and Seventh and Eighth avenues and also West 28th Street and West 30th.
“It’s time-honored that the companies that work here are the companies that work here, and that’s the end of it,” Patricia Lancaster, former New York City Buildings Commissioner told Crain’s.
Neither Tutor Perini nor Related could be reached for comment.
Sounds like Tutor Perini is to big for it's britches and needs to be broken up by the federal goverment. Tutor Perini is simply too big and creates an unfair monopoly and bid rigging within its own companies. The companies within Tutor Perini will of course under bid all the others just to get the project for it's parent company. FEDS WAKE UP TIME TO BREAK UP TUTOR PERINI AND IT'S NEW FORM OF RAKETEERING. iF TUTOR PERINI IS LEFT UNCHECKED IT WILL DESTROY ALL THE OTHER CONTRACTORS.
It's no wonder McCarron has been pushing full mobility so hard. There is no doubt he was looking for a sweetheart deal for his boys at tutor-perrini. more reason to fight against full mobility, Market recovery and the rest of the contractor friendly bullshit he has been pushing.