Associated Builders and Contractors - ABC - Empire State Chapter - New York - PLA Issues

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The Effect of PLAs on School Construction

Summary Sheet

School Construction

Middletown School Project / Connecticut

In July 1996 the Mayor of Middletown attempted to implement a Project Labor Agreement on the Snow School Project. The end result was that only three contractors bid and the project came in $600,000 over budget. This ultimately caused the mayor to withdraw the PLA. After the PLA was removed the project bids came in under budget and saved the taxpayers in Middletown over $1,000,000. Click links below for related articles:

Low bid $600,000 over architect's budget
Hartford Courant Article 8-20-98

Northwest Academy / Buffalo, NY

Board to absorb extra costs of new school

Project Labor Agreements on New York State Schools 8.09.00

Associated Builders and Contractors staff, attorneys, and consultants routinely investigate Project Labor Agreements (PLAs) in New York State. Below are decisions and outcomes related to school PLAs of which we have been made aware.

Central New York

Syracuse. Building Trades requested City of Syracuse not to proceed with a pro-PLA resolution when it became clear that the resolution would fail due to opposition from contractors and the minority community.
City of Ithaca School Board Rejected PLA despite authorization of the New York State Legislature.

Eastern New York

Beacon Hill School Board Rejected PLA. The board based its decision on high cost overruns on other PLA projects, and union failures to staff local jobs.
Beekmantown School District (near Plattsburg) board rejected PLA on a $25 million expansion after an architect’s review projected that a PLA would reduce the number of bidders and increase costs.
Newburgh PLA Pending
South Glens Falls PLA bids $.5 million (4%) over budget in Phase I and $1.5 million (17%) over budget in Phase II.

Western New York

Allegheny School Board rejected PLA after a consultant studied the market.
Buffalo City Schools PLA bids were $4 million (20%) over budget. The PLA was based on a "study" that foretold cost savings, despite the fact that the estimator had predicated an 8-10% increase in costs if a PLA was used.
Fredonia School Board Rejected PLA based on a desire for the best value for dollars invested. The board concluded the PLA would reduce the number of bidders, as experienced by Southwestern.
Southwestern Central School District adopted PLA. Bids were "considerably higher than estimates" [tentative: $6 million over $31 million budget, 19 prime contractors].