Project Labor Agreements (PLAs) are agreements between multiple parties used to set the terms and conditions of employment on major projects. Since World War I, PLAs have been used to improve predictability and productivity on large construction projects. For the public sector, PLAs are important construction management tools that deliver timely, cost efficient results to communities.
This research review shows the following findings:
- PLAs increase the number of bids a public project receives, in turn leading to increased competitiveness and protection of the public interest – including taxpayers.
- PLAs do not discriminate against non-union contractors.
- PLAs do not increase or have an impact on construction costs.
- PLAs facilitate competent labor in the execution of public sector contracts.
State legislation seeking to limit local governments’ abilities to use PLAs on public sector projects will not only cost Texas taxpayers a chance at highly competitive federal funding, but also limit their ability to use PLAs as accountability tools – especially during tight labor markets or economic downturns.
Stop SB 925/HB1951: Uphold Taxpayer Accountability on Public Works Projects
Every Texan opposes SB 925 based on robust research indicating that PLAs improve workers’ safety and aid in the timely completion of local government projects. PLAs promote predictability, stability and productivity. Peer-reviewed studies show that PLAs do not increase project costs. View the full research review as a PDF.
SB 925 is over regulation that local governments and businesses do not need from the state government. Disrupting PLAs on public sector work can have unintended consequences on safety, cost, and timely completion – ultimately costing taxpayers and community members the most.