The nearly catastrophic incident at the former Pfizer headquarters in Midtown Manhattan, located at 235 East 42nd Street, on 7th July has put the real estate industry and city authorities on high alert. While the exact cause of the structural problems is still under investigation, union representatives are calling for an urgent overhaul of the municipal inspection procedures.
Nathan Berman, the lead developer for the office-to-residential conversion at Metro Loft and David Werner Real Estate Investments, had downplayed the events in the media. This portrayal further angered organisations committed to public and worker safety. Unions argue that the current system of contracting third-party providers for inspections represents a significant safety risk.
Union representatives expressed shock and anger regarding the city's 'Professional Certification' programme and the approval process for independent 'Special Inspection Agencies' (SIAs). Developers typically commission SIAs instead of inspectors from the New York City Department of Buildings (DOB). In the case of the building at 235 East 42nd Street, Domani Inspection Services was contracted to certify the work. Domani had confirmed proper execution before the steel beams on the 21st floor gave way, leading to floors sagging by up to four inches and broken windows.
Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York, told Commercial Observer: “The developer has publicly referred to this breach in the steelwork as a construction mishap — that’s not a mishap, that’s far more serious.” He criticised the model where a firm is commissioned by the developer to certify the work to the DOB, highlighting the DOB's lack of its own inspectors. According to The New York Times, Domani has been associated with numerous violations in other projects and was frequently cited in documents related to the Pfizer building.
LaBarbera expects a lengthy investigation by the DOB to determine whether the near collapse was due to material defects and if the integrity of other building sections is also compromised. He and other union representatives believe that a fundamental change to the inspection process is necessary. LaBarbera expressed concern that the owner deliberately prioritised profit maximisation at the expense of a qualified and trained workforce and safety. He pointed out that construction costs for the non-union project were 50 percent lower than union bids.
Cliff Johnsen, Business Manager of Steamfitters Local 638, dismissed Berman's comments, who called the incident an 'unfortunate incident'. Johnsen stressed that an experienced union member might have raised concerns when reviewing the plans. He demanded that inspections should be carried out exclusively by DOB employees to ensure safety.
However, the DOB defends the system of third-party inspections, which has been in use for almost 60 years. Andrew Rudansky, a spokesperson for the DOB, stated that New York City has world-leading building safety requirements. Special Inspection Agencies, originally known as 'Controlled Inspections', were introduced into the New York City building code in 1968 and represent a standard across the construction industry. Although the DOB only has a staff of 1,837 employees, SIAs must submit technical reports and can be fined for violations.
