At the behest of owners and developers facing rapidly rising project costs, contractors and unions in New York City came together on a project labor agreement (PLA) that is expected to significantly increase productivity and reduce costs.

Meetings between the Building Trades Employers Association (BTEA) and the Building & Construction Trades Council (BCTC) began after owners and developers in the city asked the parties to cut costs by 25 percent and threatened to hire open shop contractors if that demand was not met. Parties agreed to a combination of work rule changes and other concessions that an independent study says could save close to 20 percent.

The PLA has been finalized and there are already applications to use it on new and existing projects. Labor interests have agreed to an open-ended PLA, allowing either party to re-open negotiations if the market continues to slide.

Copies of the PLA and the PLA application are available to Builders Association members by contacting Ms. Denise Herdrich at 847.318.8585 or visit here. 

Source: Builders Association