8 to 12 times more expensive than Italy, Istanbul, Sweden... compared to low-cost Helsinki and Spain, and compared to medium-cost Paris and Berlin
labor is 40-60% of the project’s hard costs, a lack of design standardization leads to fewer economies of
scale, New York’s subway station construction methods, by themselves,
led station costs to triple through overbuilding, and unions profiting from graft cause redundancy in blue-collar labor, as did overstaffing of white-collar labor in New York due to general inefficiency as well as interagency conflict
Numerous cost drivers have been identified that stem from
procurement norms in the United States.
These include a pervasive culture of secrecy and adversarialism between
agencies and contractors, a lack of internal capacity at agencies to manage contractors, insufficient competition,
and a desire to privatize risk that leads private contractors to bid higher.
Overall, this raises costs by a factor of
1.85, with the extra money going to red tape, wasted contingencies, paying workers during delays, and defensive
design.
Moreover, many ongoing reforms hailed as steps forward, at best do nothing and at worst are actively raising costs; these
reforms all aim to privatize risk and have been popular throughout the English-speaking world, and while
consultants, managers, and large contractors like them, costs grow sharply wherever they are implemented.
Soft costs include design, planning, force account, insurance,
construction management, and contingencies. Nonetheless, those add 5-10% on top of the hard contract
costs.
But in the Second Avenue Subway, it was 21%.