Pittsburgh Mayor Bill Peduto is looking to crack down on construction fraud in the city.
On Thursday he signed an executive order aimed at fighting efforts by constructions companies that commit tax, insurance and workers' compensation fraud. The order also targets those who use subcontractors to avoid responsibility and those that pay workers in cash to avoid taxes.
"Fraud has a devastating impact on worker safety and tax revenue, and it takes experts working together to fully address it. I want to thank all of our partners on working together on this effort, which will reward legitimate construction firms, protect workers and protect the City's bottom line," the Mayor said.
In December of 2018, Peduto and Councilman Corey O'Connor created a task force to study construction industry fraud. That task force made their final recommendations in March.
"The construction industry is the backbone of our region's middle class," said Councilman O'Connor. "The Joint Task Force's findings clearly show there are businesses operating in Pittsburgh that evade their tax obligations, undermine the work of law abiding businesses, and create unsafe working conditions. I applaud Mayor Peduto for taking swift action to safeguard our workers and tax dollars."
The order signed by the mayor directs various city departments to create a committee along with a number of construction industry organizations. That committee will be tasked with drafting language to define "construction contractor" as part of City code. In a release, the mayor's office said the purpose is to "to promote workers' safety, combat construction industry fraud, uplift law-abiding and fair contractors, and create more accountable and transparent construction development processes."
The full executive order can be read here.
