News

A shortage of bids on the New York State Fairgrounds pedestrian bridge project will leave New Yorkers paying more, but getting less. When plans for the project were released with an accompanying project labor agreement (PLA), the playing field narrowed from 20 companies interested in the project to just two submitting bids, with the lowest bid coming in well in excess of $1 million over engineering estimates. Why the drastic decrease in competition and increase in costs? The answer can be found in three simple letters: PLA.

The PLA study, which cost Ogdensburg taxpayers $21,000, purports that with a series of false savings, labor consolidation and “management rights,” the project will save money. Yet no one challenged the study’s creator, Tim Seeler of Seeler Engineering, to positively prove those savings will be achieved. They also never asked him about the negative impact the lack of competition will have on the bidding process. They simply rubber-stamped the study and closed the door on local contractors and their employees.

A PLA is a pre-hire agreement requiring the workforce comes from local union hiring halls. However, unions only account for 21 percent of the construction workforce across New York, with that number being even smaller in the Lake George area. PLAs effectively bar the majority of local contractors and their workers from bidding and winning work that their own tax dollars fund. PLAs do nothing more than eliminate competition for unions, ensuring their contractors win work, and decrease the number of bids on a project, driving taxpayer expenses.

The Chapter provides a recap of the budget passed for the new fiscal year.

The reports are clear. The use of prevailing wage on projects does not improve the quality of the project nor does it make them safer. Instead, it means projects will cost 15-30% more and any financial support will need to be increased to make those projects feasible. We shouldn’t be making New York more expensive.