Objective

To determine the extent of implementation of the nine recommendations included in our initial audit report, Street Construction-Related Permits (Report 2020-N-6).

About the Program

The New York City Department of Transportation’s (DOT) mission is to provide for “the safe, efficient, and environmentally responsible movement of people and goods in the City of New York and to maintain and enhance the transportation infrastructure crucial to the economic vitality and quality of life of our primary customers, City residents.” DOT is responsible for over 6,300 miles of streets and highways, over 12,000 miles of sidewalks, and 789 bridges and tunnels, including 24 movable bridges and four tunnels.

DOT issues 150 different types of sidewalk and roadway construction permits that cover activities such as street openings, sidewalk construction, and installation of canopies over sidewalks. Street opening permits are required for excavations or other work on a City street or sidewalk that may cause damage to or compromise the street surface. These permits are issued to entities that need access to subsurface infrastructure, including utility companies and contractors such as licensed master plumbers.

DOT’s Bureau of Permit Management and Construction Control (Bureau) is responsible for overseeing all construction-related permitting. The Bureau comprises two offices. The Office of Permit Management (Permit Office) provides customer service for all applicants, registers permittees, reviews and approves applications, and reviews appropriate fees for both online and in-person applications. There is a central permit office in Manhattan and borough permit offices in each of the other boroughs. The Office of Construction Mitigation and Coordination reviews all construction permit applications and develops permit construction activity stipulations for the work performed on the streets to mitigate disruptions to City businesses, residents, and visitors caused by street construction.

DOT developed and implemented the NYCStreets Permit Management System (NYCStreets), an online application. An applicant must first register by submitting a completed permittee registration application and supporting documentation to the Permit Office. Once the permittee is registered, they can apply for a permit to do work and pay the permit fees.

A street is placed in protected status for 5 years from the date it was last resurfaced or reconstructed. Permit requests to perform work on protected streets are subject to additional review and, according to DOT’s Street Works Manual, DOT will review an application for a street opening permit only when the applicant can demonstrate that the work could not have been reasonably anticipated prior to the street resurfacing/reconstruction.

Highway Inspections and Quality Assurance (HIQA) is DOT’s enforcement unit, which operates 24 hours a day, 7 days a week and has an office in all five boroughs. HIQA conducts construction site inspections to ensure permittees comply with the laws, regulations, and permit specifications and stipulations. Inspectors may issue Corrective Action Requests (CARs), Notices of Immediate Corrective Action (NICAs, or priority CARs), and Notices of Violation (NOVs). An NOV carries a monetary fine and places the issue under the jurisdiction of the Environmental Control Board. According to DOT, the New York City Department of Finance collects the fines. A permittee must perform repairs within 30 days of receiving a CAR. Corrective action is required within 3 hours of the issuance of a NICA by telephone call or email.

We issued our initial report on June 13, 2022. The audit objectives were to determine whether DOT ensured that all street construction permittees had complied with the application requirements and permit conditions, including completing the project by the scheduled permit expiration date. We also determined whether DOT coordinated with other entities planning to perform work at the same site to ensure minimal disruptions.

The audit found that DOT did not always ensure that permittees were in compliance with the street permit requirements. Among the issues we identified were the following:

• DOT did not perform all required inspections to verify that permittees complied with permit conditions. We determined that 41,761 (14%) of 299,933 street opening permits not inspected should have been inspected.
• There was no set time frame for HIQA inspectors to return to reinspect after issuance of a CAR/NICA, and as a result, DOT has no assurance the conditions were corrected by the permittee within the specified time frames. We found 21 CARs that were reinspected more than 3 months after issuance, including one that was reinspected more than 1 year after the 30-day time frame that permittees have to perform corrective actions. Seventy-three of 75 reinspections following issuance of a CAR were passed by a HIQA inspector and approved by a HIQA supervisor but did not contain supporting documentation to show the condition or work was corrected.
• DOT did not ensure that applicants complied with registration and permit application requirements, including ensuring that permittees had proof of sufficient insurance.
• DOT did not ensure that only emergency work was performed within protection periods.
• DOT did not provide records to support its communication and coordination with other entities, including other City agencies, for street construction projects.

The objective of our follow-up was to assess the extent of implementation, as of March 6, 2025, of the nine recommendations included in our initial audit report.

Key Finding

DOT officials made some progress in addressing the issues we identified in the initial report. Of the initial report’s nine recommendations, two were implemented, six were partially implemented, and one was not implemented.

Key Recommendation

DOT officials are requested, but not required, to provide information about any actions planned to address the unresolved issues discussed in this follow-up within 30 days of the report’s issuance.