Skanska USA Civil Northeast Inc. has agreed to pay $19.6 million to settle a federal investigation into disadvantaged-business-enterprise subcontracting practices among contractors on New York City. According to the settlement announced March 31, the Whitestone, N.Y.-based unit of global Swedish contractor Skanska AB will not face any civil claims or criminal charges stemming from the probe, which is continuing. But in a related indictment of owners of one of the contractor’s DBE subcontractors, Ridgefield, N.J.-based Environmental Energy Associates (EEA), prosecutors say that on one project, Skanska USA Civil Northeast “effectively self-performed the work…and helped create the appearance that EEA had
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.