The New York City district attorney’s criminal indictment of Manhattan-based construction management and interiors firm The Builders Group for stealing nearly $7 million from five private-sector clients now accompanies ongoing civil lawsuits by those owners. The Jan. 27 indictment against the firm, its president George Figliolia and two other executives, charges them with a kickback scheme on projects such as condo conversions and office renovations that inflated construction costs through submission of false subcontractor bills between 2006 and 2009. Names of clients were not disclosed in the indictment, but the firm previously cited work for firms such as AT&T, Tiffany’s
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.