State
Government-mandated PLAs discourage merit shop contractors from bidding on taxpayer- funded construction contracts and drive up costs between 12 percent and 18 percent
OVERVIEW
Anti-competitive and costly government-mandated project labor agreements (PLAs) are special interest schemes that end open, fair and competitive bidding on contracts to build taxpayer-funded construction projects. Government-mandated PLAs discourage merit shop contractors from bidding on taxpayer-funded construction contracts and drive up costs between 12 percent and 18 percent, which results in fewer infrastructure improvements, reduced construction industry job creation
PLAs drive up the cost of construction by reducing competition and effectively excluding merit shop contractors and their skilled employees from building projects paid for by their own tax dollars. ABC, Empire State promises to fight every proposed government-mandated Project Labor Agreement in the State of New York, from the smallest of projects to the largest.>
ABC SUPPORTS
- The ABC strongly supports S.4195 /A.6364. This legislation, the Public Construction Savings Act,< will level the competitive playing field and allow all contractors – whether union or non-union – to fairly compete for public construction projects. The Public Construction Savings Act allows contractors to submit responsive bids whether they choose to use a PLA or not.
- Legislative or executive measures to preserve full and open competition on public construction contracts
Public construction contracts awarded based on sound and credible criteria, such as quality of work, experience and cost—not a company’s union affiliation and willingness to execute a PLA
ABC OPPOSES
- Government-mandated PLAs and discriminatory PLA preferences on publicly funded construction projects.
- Claims by PLA proponents that government mandates and preferences for PLAs will improve the economy and efficiency in federal contracting.
If you catch wind of a possible proposed government-mandated PLA or want to get involved in the fight against PLA’s, please contact us at ABC-Empire@abcnys.org
Prevailing Wage
As the leading voice in New York for merit and open shop contractors, a community that represents over 75% of the construction workforce, ABC staunchly opposed the expansion of prevailing wage to private work from the moment the proposal was introduced. The measure would have applied prevailing wage to any project receiving taxpayer support, increasing construction costs by upwards of 30%, and rendering many projects too expensive to build. We have consistently pointed out that this deeply flawed proposal will dramatically increase construction costs and result in less construction and fewer jobs.
Recognizing the threat that expanding prevailing wage would have on New York taxpayers and the economy, ABC has long called for reforms to New York state’s methodologies used to determine and establish prevailing wage rates on public works projects. Unions now represent only 24% of the state’s construction workforce, yet New York State still utilizes union collective bargaining agreements.
New Yorkers want their government to jumpstart the economy, fix crumbling infrastructure and do a better job of spending their tax dollars at the same time. ABC has called on state leaders to review and consider its recommendations to reduce the costs imposed by prevailing wage. According to the study, prevailing wage rates in the state are up to twice the market wage. The study recommended many reforms, such as indexing prevailing wage with the use of US Bureau of Labor Statistics mean wages with conventional benefit rate of 25-40%, not the current 70% prevailing wage fringe pack.
This flawed proposal would only further stifle any hopes of attracting new residents, while crippling economic growth in Upstate.
Click here to read Prevailing Waste an Analysis of New York’s Costly Public Works Mandate
This antiquated law makes insurance prohibitively expensive and drives up the cost of construction in New York State
OVERVIEW
This antiquated law exposes owners and contractors to unfair strict liability, which makes insurance prohibitively expensive and ultimately drives up the cost of construction in New York State.
New York is the only state that still keeps this law on the books, costing taxpayers upwards of $785 million dollars annually.
BACKGROUND
Because of this law, New York’s general liability insurance is the highest in the nation for construction and has resulted in fewer carriers that will actually write policies in New York. Today, the situation has become so bad that getting general liability insurance has become a crisis of availability. The current standard of “absolute liability” isn’t working and must be replaced with a standard of “comparative negligence.” Under this common-sense reform, liability is apportioned by a jury, in proportion to the actual fault.
ABC SUPPORTS
S5695 and A2539 –This legislation would change the manner in which workers’ supplemental benefits are calculated to use the annualization methodology pursuant to the federal Davis-Bacon Act and provide that any person debarred from federal contracts due to violations of the wage requirements in the Act would similarly be debarred from being awarded New York state and local contracts.
ABC OPPOSES
S3995/A5414 – This bill would provide that any person debarred from federal contracts due to violations of the wage requirements in the federal Davis-Bacon Act would similarly be debarred from being awarded New York state and local contracts. The legislation fails to recognize the inconsistency between federal Davis-Bacon Act work and New York State public jobs. S5695 and A2539 addresses those concerns and provides for a more fair approach to debarment reciprocity.
Annualization reform would allow contractors to provide, and employees to receive, benefits, without penalty
OVERVIEW
Currently, the New York State Department of Labor calculations annualize both private and public benefits by the same method, resulting in excessive costs to contractors already providing benefits to their workers. Because of these calculations, many contractors are eliminating traditional benefit packages and, instead, are offering the benefits as a cash supplement in the employee’s paycheck.
This growing practice eliminates the double payment as previously offered benefits by contractors, but exposes the employee to higher taxes and the employer to more payments in payroll taxes and other burdens; all without the employee receiving important benefits. Annualization reform would again allow contractors to provide, and employees to receive, benefits, without penalty.
ABC SUPPORTS
S5695 and A2539 –This legislation would change the manner in which workers’ supplemental benefits are calculated to use the annualization methodology pursuant to the federal Davis-Bacon Act and provide that any person debarred from federal contracts due to violations of the wage requirements in the Act would similarly be debarred from being awarded New York state and local contracts.
ABC OPPOSES
S3995/A5414 – This bill would provide that any person debarred from federal contracts due to violations of the wage requirements in the federal Davis-Bacon Act would similarly be debarred from being awarded New York state and local contracts. The legislation fails to recognize the inconsistency between federal Davis-Bacon Act work and New York State public jobs. S5695 and A2539 addresses those concerns and provides for a more fair approach to debarment reciprocity.
