Committee on Contracts meeting
April 29, 2026, 1:15 PM
Jointly with the Committee on Transportation and Infrastructure and the Committee on Cultural Affairs, Libraries and International Relations.
The Committee on Contracts held a joint oversight hearing on capital construction contracting and cost escalation across city agencies, along with hearings on a bill for a capital cost-reduction blueprint (Int 0263) and a ferry service expansion study bill (Int 0465). No votes were taken.
What was discussed
- Joint hearing called to order The Sergeant-at-Arms opened the joint hearing of the Committees on Contracts, Transportation and Infrastructure, and Cultural Affairs, Libraries and International Relations.
- Chairs frame the oversight hearing on capital cost overruns and delays Chair Lincoln Restler, Majority Leader Shaun Abreu, and Chair Nantasha M. Williams opened the joint hearing on capital construction contracting and cost escalation; Restler cited a December Comptroller report finding 80% of DDC-managed projects behind schedule by an average of 3.5 years, and Abreu
- Council Member Stevens makes the case for Int 465, a Harlem River ferry study Council Member Althea V. Stevens spoke to her bill Int 465, arguing the West Bronx is a transportation desert and that a study of Harlem River ferry expansion would advance transportation equity, reduce congestion, and drive economic growth around Yankee Stadium and the Bronx Terminal.
- Administration witnesses sworn in Committee Counsel administered the affirmation to the administration panel before testimony.
- DDC Commissioner Paul Ochoa's opening testimony Paul Ochoa, on his third day as Commissioner of the Department of Design and Construction (DDC), testified on the agency's capital delivery work and its push toward alternative delivery methods such as design-build and CM-Build.
- DCLA Commissioner Diya Vij's opening testimony Diya Vij, Commissioner of the Department of Cultural Affairs (DCLA), testified on the agency's role advocating for cultural organizations through the capital process, later joined by DCLA Assistant Commissioner of Capital Andrew Burmeister.
- How does a cultural capital project move through DDC, and where does it get stuck? Chair Nantasha M. Williams asked DDC to map the capital process from proposal to closeout; Commissioner Paul Ochoa said projects begin with a capital initiation package and front-end planning, and pointed to the new CM-Build alternative delivery method as a way to speed library renovations.
- How much capital does DCLA request each year, and how much gets funded? Asked by Chair Nantasha M. Williams about volume, Commissioner Diya Vij said DCLA received about 139 projects from 112 organizations totaling just over $683 million for FY27, and noted the dollar amount funded is far below what is requested.
- When should cultural organizations be allowed to self-manage their own projects? Chair Nantasha M. Williams pressed on self-management; DCLA Assistant Commissioner Andrew Burmeister said self-managing organizations remain responsible for compliance with prevailing wage and vendor rules, said DDC is the default manager with EDC used occasionally, and agreed to look into creating
- Is front-end planning working, and does the city hear directly from cultural institutions? Chair Nantasha M. Williams questioned whether front-end planning delays projects and whether the city gathers feedback from institutions; Commissioner Paul Ochoa defended front-end planning as speeding later phases and committed to create space to hear from cultural institutions directly.
- How can the city keep fundraising delays from driving up cultural project costs? Chair Nantasha M. Williams described a cycle where multi-year fundraising fails to keep pace with inflation; Commissioner Paul Ochoa acknowledged gaps between sponsor and DDC cost estimates and offered to join a roundtable, and Commissioner Diya Vij said DCLA's AIMS inspections every three years
- What role can alternative delivery play in DOT street reconstruction? Chair Shaun Abreu asked about design-build for street work; Commissioner Paul Ochoa said crews 'don't know what we don't know' underground and confirmed design-build has already cut some project timelines by nearly half, a trend DDC will monitor.
- Does DDC dispute the Comptroller's findings on cost overruns and delays? Chair Shaun Abreu pressed on Comptroller Lander's December 2025 audit; Commissioner Paul Ochoa said DDC disagrees with how the Comptroller measured timelines (counting from funding rather than from when DDC receives a project) and argued scope changes should not be counted as cost overruns.
- How many of the 39 capital-reform recommendations has DDC implemented? Asked by Chair Shaun Abreu, Commissioner Paul Ochoa said about 24 of the Capital Process Reform Task Force's 39 recommendations are fully implemented with the other 15 in progress, and highlighted expansion of OMB's Capital Project Scope Development fund as a key reform.
- Will DDC report actual project costs and delays in the MMR? Chair Shaun Abreu asked DDC to add cost and delay benchmarks to the Mayor's Management Report; Commissioner Paul Ochoa said DDC tracks budget and cost in separate systems, disputed the finding that it cannot monitor overruns, and agreed to discuss developing benchmarks by project type.
- Does DDC 'rebase' completion dates in a way that hides delays? Chair Shaun Abreu raised the Comptroller's finding on rebasing project timelines; Commissioner Paul Ochoa said resets usually follow significant scope changes but agreed the public does not care about scope-change excuses and that posted timelines should be ones DDC holds itself to.
- How does DDC account for a nonprofit that must close during construction? Council Member Pierina Ana Sanchez raised the Kingsbridge Heights Community Center roof project and the stalled Davidson Avenue Community Center; Commissioner Paul Ochoa and Associate Commissioner Margolies said both are old buildings with unknowns, that a second floor cannot be added until the
- Can DDC give the Council reliable, unified data on project cost and delays? Chairs Lincoln Restler and Shaun Abreu pressed on transparency; Commissioner Paul Ochoa said the city's capital projects dashboard covers only about 60% of commitments and committed to review DDC's IT systems to consolidate cost and timeline tracking.
- Why hasn't capital reform produced measurable improvement in timelines? Chair Lincoln Restler noted DDC project timelines have fallen only from about 96 to 90 months; Commissioner Paul Ochoa pointed to 2026 as a breakout year for design-build, citing the completed Shirley Chisholm Recreation Center as the 'gold standard.'
- Is the city using design-build at scale across the agencies authorized for it? Chair Lincoln Restler cited DDC's report of 12 design-build contracts worth over $800 million and asked why uptake is slow; Commissioner Paul Ochoa attributed it to a learning curve and staff training and agreed to provide a full list of DDC design-build projects.
Agenda
4 items
- T2026-1616 Oversight - Capital Construction Contracting and Cost Escalation. Hearing Held by Committee
- Int 0263-2026 A Local Law in relation to developing a strategic blueprint to reduce capital project durations by at least 25 percent Hearing Held by Committee
- Int 0465-2026 A Local Law in relation to a study and report on the expansion of ferry service along the Harlem River Hearing Held by Committee
- Res 0264-2026 Resolution calling on the New York State Legislature to introduce and pass, and the New York State Governor to sign, legislation to grant permanent and expanded Design-Build authority to all New York City agencies Hearing Held by Committee