NEW YORK — Construction companies have to be paid on time to begin work on the biggest project of the year, and they will be paid a premium, according to a new study by the Institute of Public Affairs.
In the first such study since the housing market crashed in 2008, the IPA and the Urban Land Institute conducted a survey of 1,400 architects and construction companies that was released Wednesday.
The survey was based on interviews conducted by telephone, over the Internet and in person over a year.
It found that firms paid on average $3.5 million to start work on their projects, with $2.5 billion to be covered by construction insurance.
About one-third of the companies said they were paid $500,000 or more in construction costs, with the rest paying no more than $1 million.
The study found that only 10 percent of the firms would build more than 100 units, while the rest were building more than 500 units.
The most expensive projects were for $3 million or more.
“We need a housing market that has a high level of supply and high demand, and that is in the interest of everyone, not just the wealthy,” said Andrew Kluger, director of the Institute’s Center for Urban and Regional Policy.
“The cost of housing is rising faster than the rate of income growth, and it has to be addressed in a fair way.”
Construction is the only industry that has suffered in recent years, and the industry has seen its share of losses, with construction companies accounting for nearly one-fifth of all construction losses since 2008.
While construction costs have decreased by about 60 percent since 2008, construction costs remain a major source of income for many people in the industry.
For instance, according
