UPDATE 1-NYC mayor seeks new construction safety measures

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By Joan Gralla

NEW YORK, June 4 (Reuters) - New York City Mayor Michael Bloomberg on Wednesday proposed measures to improve construction safety, including bigger fines and the power to stop work by faulty companies.

"We will suspend or revoke their ability to do business in New York City," the city's acting building department chief, Robert LiMandri, said at a news conference attended by Bloomberg and other city officials.

Bloomberg unveiled the proposals for tougher regulation of construction companies after a deadly accident last week on the Upper East Side, in which a crane smashed into a high-rise apartment building, killing two building workers.

The East Side of Manhattan was the site of another deadly crane collapse in March, and 15 people have died in building accidents in just the first five months of this year.

That is more deaths than in any single year in the past four to five years, Bloomberg said. "This year's unacceptably high number of construction fatalities underscores that we must do more," he said.

Noting the buildings department is conducting a $4 million safety review to identify the best practices in the industry, Bloomberg added: "These new laws will give them valuable tools to keep New York safe."

Most recent construction accidents have involved the two types of work that have the "highest risk:" pouring concrete, and erecting, lengthening or taking down cranes, Bloomberg said.

His proposed safeguards, which the City Council must enact, include site safety monitors, safety meetings before cranes are handled, and more worker training. The rules will apply to general contractors and subcontractors.

"Closing down construction is not an option," Bloomberg said.

Bloomberg's critics say he has relied too much on new building to revive the city's economy, pushing through major rezoning of broad swaths of land in all five boroughs to allow much denser development with taller towers than ever before.

Building industry officials say they fear a crackdown will add costs and delays to New York City's cumbersome permitting process -- just as the industry struggles to fend off a downturn caused by the credit crunch.

The city has been in the midst of a building boom, with $51 billion of public and private projects planned over the next four years, according to a report by a state panel.

Democratic Council Speaker Christine Quinn said she would hold hearings to approve the new laws as soon as possible. (Editing by Leslie Adler)