Kristen Gowin

Gov. Maura Healey recently signed an executive order promoting project labor agreements for all state public works projects over $35 million. It’s not just good governing; it’s good business.

For public entities large and small, from towns to major state divisions, PLAs provide the predictability, safety and equity to large-scale construction projects. They help ensure projects are successfully completed on-time and within budget, while creating opportunities for workers from all backgrounds, expanding access to family sustaining careers in the skilled trades.

PLAs are a proven tool for delivering high-quality construction with a reliable workforce. By ensuring these same high standards apply to all contractors bidding for the work, PLAs help level the playing field for responsible contractors who prioritize craftmanship, worker protections and safety. It also helps attract more bidders, which ensures taxpayers get the best finished product for the lowest price possible.

Thomas Gunning

There is a common misconception that PLAs mandate union-only contractors. This is simply not true.

Any contractor – union or not – can submit bids on a PLA job. PLAs protect against worker exploitation, wage theft and safety violations. PLAs ensure every contractor – union and non-union – is accountable and adheres to the best and safest standards in the industry. That’s good for workers and even better for taxpayers who are footing the bill.

Simply put, your tax dollars are in better hands on a job with a PLA in place.

Real-World Success in Massachusetts

Andrew DeAngelo

The benefits of a PLA are on full display at the new Massachusetts Veterans Home in Holyoke.

Construction on the new Veterans Home, which included a PLA, is ahead of all expectations. The $400 million project began in August of 2023 and will be completed in 2026. It is ahead of schedule and is expected to be completed on-time and on-budget.

And that is what PLAs are all about: ensuring that major public works projects paid for with taxpayer dollars utilize skilled workforces that represent the communities where the projects are being built. This is true for the Veterans Home in Holyoke, as well as hundreds of other private projects across the commonwealth, such as TD Garden, Gillette Stadium and the North Point development in Cambridge.

The advantages of PLAs aren’t just anecdotal, they are backed by extensive research.

Stephen Affanato

A 2022 study by the Independent Project Analysis Inc., a think tank that analyzes construction data, found that costs on union projects were 4 percent less than non-union across the country over the past 20 years. This can be attributed to the fact that union contractors were 15 percent more productive than their non-union counterparts while the risk of cost and schedule overruns was 40 percent lower with union shops.

Another recent study in Illinois found that PLAs increased competitive bidding by an average of 14 percent and resulted in bids coming in lower, saving taxpayers millions in the process. Clearly PLAs encourage competition and result in safer and more efficient job sites for everyone.

Building a More Competitive Massachusetts

Massachusetts leads the nation in health care, innovation, education, and life sciences. The governor’s executive order is solidifying its leadership in public infrastructure.

Project labor agreements not only make sense for worker safety and jobsite protections, they also make business sense for both the contractor and the end user.

By leveling the playing field for those bidding and ensuring an efficient and on-time completion, more subcontractors bid on the work competitively – and the end user gets the best finished product achievable.

That is not just good policy, it’s good business. And that’s something we can all be proud of.

Kristen Gowin is executive manager of the Greater Boston Chapter of the National Electrical Contractors Association. Thomas Gunning is executive director of the Building Trades Employers Association Northeast. Andrew DeAngelo is the executive director of the Greater Boston Plumbing Contractors Association Stephen Affanato is the executive vice president of the New England Mechanical Contractors Association.

Healey’s Executive Order on PLAs Is Good Governing and Good Business

by Banker & Tradesman time to read: 3 min
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