Project labor agreement mandates inflate cost of construction 13%

A study released today by the Beacon Hill Institute found that Ohio schools built under government-mandated project labor agreements (PLAs) cost 13.12 percent more than schools that were bid and constructed through fair and open competition, free from PLA requirements. The study looked at 88 schools built in Ohio since 2000 and found that those built under a PLA mandate cost $23.12 more per square foot than projects built without PLA mandates.

“The study released today by the Beacon Hill Institute corroborates past academic research that shows that anti-competitive government-mandated PLAs prevent taxpayers from getting the best return on their investment,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “All taxpayers deserve efficient, accountable and effective construction spending and investment in schools and infrastructure free from special-interest handouts that discourage competition from qualified, local workers and contractors.”

“Associated Builders and Contractors encourages Ohio lawmakers to join the 23 pro-taxpayer states that have passed measures that ensure government neutrality toward PLAs,” said Brubeck. “Additionally, ABC encourages President Trump to rescind President Obama’s Executive Order 13502, which promotes costly PLA mandates on federal and federally assisted construction projects, and replace it with a common-sense policy that would guarantee fair and open competition from America’s best construction companies and create opportunities for America’s entire skilled construction workforce as Washington considers a federal infrastructure plan.”

The full study, Project Labor Agreements and the Cost of School Construction in Ohio, is available on the Beacon Hill Institute's website.

Interesting read originally from BDC Network

Comments

Construction disputes were slightly less contentious last year

The resolution of global construction disputes remained steady in 2016, and the average time it took to resolve those disputes declined bit, according to the seventh annual Arcadis Global Construction Disputes Report 2017, which is subtitled “Avoiding the Same Pitfalls.” This report reflects the construction disputes that Arcadis’ team handled around the world. The report infers that the roadblocks to expeditious and less cost dispute resolution often stem from the need for better contract administration, robust documentation, and a proactive approach to risk management. “Our industry contains the best problem solvers in the world,” the report states. “But there often seems to be a lack of ability or willingness of the project participants to compromise and resolve disputes at the earliest and most inexpensive stage possible.” Roy Cooper, Senior Vice President of Arcadis Contract Solutions, attributes disputes to “human emotions that can impede settlements, as they do with phys...

Quick turnaround: Partners HealtchCare

This administrative building, the largest in Somerville, Mass., consolidates 4,500 employees from 14 locations across Boston into one place. The project’s 30-month schedule was half of the typical time frame for such a building. So the Building Team had little margin for delays or mistakes. Twice-weekly meetings that included the client, AEC firms, and consultants were guided by seven core values that served as a roadmap during the design process. Once construction began, project leaders established a risk assessment group that identified and assessed potential problems weekly. The building creates an “all-under-one-roof” organizational concept and culture, with a training center, multipurpose auditorium (available for use by campus residents, the local community, and the Partners’ network), community hubs, and outdoor spaces that include two acres of green space and walking paths. The facility is near a new subway stop, which connects the building to Somerville’s developing mix...

Green building advocates erect icehouses on Penn. state capitol steps to make point on codes

Advocates aiming to prompt Pennsylvania legislators to update the state’s building codes erected two icehouses on the steps of the state Capitol in Harrisburg to make a point about energy efficiency. One 8-foot-by-8-foot icehouse was built to current code; the other was built to passive house energy efficiency standards. In about three weeks, the project’s designers expect that the half-ton of ice in the less efficient shed will have melted completely, while the block in the high-performance building will still be about half of its original size. Pennsylvania has not updated its energy codes since 2009. Advocates also want state lawmakers to reform the process for adopting new codes. The Senate and House passed bills this spring to revise the state’s building code adoption process. A 2011 law requires an advisory board to approve each code change with a two-thirds vote. Interesting read originally from BDC Network

The Erick Burns Show

Search This Blog