The report, titled “Project Labor Agreements and Public Construction Costs in New York State,“ concluded that the presence of a PLA increased the projects’ base construction bids by $27 per square foot relative to non-PLA projects.

“This study provides further proof that PLAs drive up the cost of construction projects, while discriminating against the four out of five construction workers who choose not to join a labor union,” said Kirk Pickerel, ABC president and CEO.

Of the 117 schools examined by the researchers, 19 municipalities entered into PLAs for school projects. The researchers took into account differences in both the type of schools (elementary, junior and high schools) and the size (controlling for square footage). The majority of school districts that chose not to enter into such agreements saved between $2.7 million for a 100,000-square-foot building and $8.1 million for a 300,000-square-foot structure.

In 2004, the Beacon Hill Institute released a similar study that found that the use of PLAs on school construction projects in Connecticut increased the cost of the projects by nearly 18 percent. The report concluded that the presence of a PLA drove up the projects’ final base construction costs by $30 per square foot compared to non-PLA projects. (Newsline, Vol. 4, No. 36, Sept. 15, 2004)

Click here to download a copy of “Project Labor Agreements and Public Construction Costs in New York State.“

Click here for more information on the Beacon Hill Institute.

For more information, contact Ben Brubeck at ABC, brubeck@abc.org.