A continuing crackdown by New York City prosecutors on fraud in the city’s interior renovation market has netted its latest results�the May 5 indictments of six area subcontracting firms and their owners, in a contractor bid inflation scheme that overcharged clients by at least $30 million in the last decade. Related Links: New York CM Firm Indicted in Client Bilk Scheme The firms and executives were charged with second-degree grand larceny for colluding with Manhattan-based Lehr Construction Corp. in the fraud. That construction management firm and four of its leaders were indicted on May 4 on charges that included fraud,
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.