Search
 

Project Labor Agreements Are Gaining Momentum

GREATER BOSTON-Despite an executive order banning project labor agreements on federally financed projects, PLAs are increasingly being used in this state to help manage construction.

By Naomi Grossman | Updated on August 21, 2001

GREATER BOSTON-The use of project labor agreements on construction projects in cities and towns in this state is increasing, even as an executive order is attempting to ban their use on federally financed projects.

PLAs guarantee against work stoppages provided only union employees are hired on the job. On large jobs–such as the Big Dig–a PLA is considered crucial to the management of the construction project. But PLAs are increasingly being used on smaller projects to prevent delays. “PLAs are winning a lot of friends,” Joe Nigro, secretary treasurer of the Building and Construction Trades Council/Metro District, tells GlobeSt.com. “They are being used on more and more projects.”

This past February, President George W. Bush issued an executive order preventing the use of PLAs on new construction projects that are federally financed. The Big Dig received a waiver for the remainder of its work but the Building and Construction Trades Department of the AFL-CIO recently successfully challenged Bush’s order when a judge issued a preliminary injunction against enforcing the order on a bridge project near Washington D.C.<PCritics complain that PLAs limit competition and drive up the costs of a project. The Associated Builders and Contractors Inc. did not return calls by press time but the organization has reportedly stated that the increase in competition that occurs in the absence of PLAs can save a project 5% to 7% in costs. ABC reportedly asked the Massachusetts Convention Center Authority to reexamine the proposed new convention center's PLA to ensure that costs are being kept down. It is reportedly unlikely that the MCCA will not use its PLA.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.