I work full-time as a subcontractor on commercial projects in the SF bay area and am fairly familiar with the costs associated with insurance, workers comp etc.

I work full-time as a subcontractor on commercial projects in the SF bay area and am fairly familiar with the costs associated with insurance, workers comp etc. We utilize union labor to install our projects. And you are right, it does cost a lot to follow the laws. But those costs are not nearly high enough to explain how 400-600 sq/ft units are being built for between $1,100-$1,400 a square foot. My guess is much of the cost bloat is "administrative" and has nothing to do with real construction costs.