$9.5 billion NYC airport project takes on ADR for workers’ compensation

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diving letter:

  • The consortium behind the $9.5 billion JFK International Airport construction project has introduced a new system for worker compensation claims. The New Terminal One team has partnered with workgroup insurer Ullico Casualty Group and insurance broker NFP to integrate an alternative dispute resolution program into the project.
  • The independent system for administering compensation claims for unionized workers aims to provide improved medical care and lower insurance costs. It is the first ADR program approved by the Building & Construction Trades Council of Greater New York in 20 years. according to a press release.
  • “The ADR program creates a safer and fairer system with implications far beyond New York,” said Gerrard Bushell, President and CEO of New Terminal One, in the press release.

Dive insight:

The 2.4 million square meters The new Terminal One project has laid the foundation September 8th. The project, with a deadline of 2030, is expected to create 6,000 jobs under a project work contract. The project’s design-build team is AECOM Tishman and Gensler. The New York Port Authority is responsible for the project, which is privately funded by Ferrovial, JLC Infrastructure, Ullico and The Carlyle Group.

ADR programs, which use mediators to resolve disputes or claims faster, have gained popularity on some projects, Carol Sigmond, a partner at New York law firm Greenspoon Marder, told Construction Dive.

A common use of an ADR could be when multiple parties or contractors need to work in the same area on a construction site. A mediator can be used to mediate and help find the most cost effective time schedule for groups to complete the work.

When it comes to workers’ compensation issues, Sigmond said ADRs can help bypass the often tedious or frustrating process of going before a judge. However, a project employment contract lends itself much better to an ADR as it gives a pre-set notion of how injuries and incidents will be recorded and acknowledged.

“Our program is committed to providing union workers with improved health care so they can obtain the resources they need and return to work without encountering the delays or complications common in a traditional claims dispute resolution system,” said Edward Smith, President and CEO of Ullico, in the press release.

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