Excerpts:
“union-only PLAs are against the law”
“In locations where current union presence is stronger (San Francisco CA and New York NY),
and in difficult economic times where construction activity is low, a PLA can offer concessions to
normal union work rates and rules”
“In locations where union presence is lower than the national average (Denver CO, New Orleans
LA, and Orlando FL), we estimate that PLAs will increase project labor costs and thereby
increase the projected total construction cost. In both a poor and stable economy in these
cities, this construction cost increase ranges from 5% to 9%.”
Denver: “We consider that a VA project constructed in Denver utilizing a Project Labor Agreement could
experience a construction cost premium of approximately 6.4%”
New Orleans: “We consider that a VA project constructed in New Orleans utilizing a Project Labor Agreement could experience a construction cost premium of approximately 7.5%.”
“This study concludes that PLAs may be beneficial in the New York City metropolitan area. The
balance of New York State is not included in this study and as this area is more rural, less
densely populated, with a very different union presence this conclusion will likely vary for this
area”
Orlando: “We consider that a VA project constructed in Orlando utilizing a Project Labor Agreement could experience a construction cost premium of approximately 7.6%.”
San Francisco: “Overall we consider that a VA project constructed in the San Francisco, Bay Area utilizing a Project Labor Agreement will have a neutral cost effect in a poor economic cycle. In a stable economic cycle we consider a PLA will serve to increase construction costs at approximately
1.5%, with a range from 0% to 3%.”
Link to Full Study:
