Project Labor Agreements (PLAs) are single-site, pre-hire craft labor agreements unique to the construction industry in the United States. PLAs can potentially save clients from 3-5% on construction project labor costs because organized labor has the power under such an Agreement to grant concessions off prevailing wage rates. Without a PLA, labor rates for public works construction are otherwise fixed for all workers by state and federal statute.
There have been thousands of PLAs the United States since the U.S. Congress created them in the 1930’s. Most have been for state, local and federal public works projects. This includes large, complex construction such as Kennedy Space Center and small municipal projects such as a bus storage facility—and everything in between. PLAs have also been widely utilized for private sector construction, including the World Trade Towers, Kennedy and LaGuardia airports, Mario M. Cuomo Bridge, and many others.
Is a PLA right for your project? The answer is not always obvious. Arace Consulting specializes in conducting PLA Feasibility Studies (PFS) designed to assess and quantify the beneficial, negative and neutral impacts of utilizing a PLA for your construction project. If needed, we also negotiate the terms and conditions of a PLA with local unions, providing counsel to our clients through every step of the process.
Arace & Company Consultants, LLC. is a consulting firm specializing exclusively in Project Labor Agreement Services. Since 2003, our firm has successfully delivered 44 Project Labor Agreement Feasibility Studies (PFS), and 35 executed PLAs, for construction projects totaling more than $3bn. To date, Arace has completed multiple PFS for each of the following New York State agencies: Office of General Services, Department of Transportation, Bridge Authority, State University of New York and City University of New York. We have delivered PFS for a wide variety of county and municipal projects including schools, infrastructure, fire and police stations, bridges and roads, and others in NY, CT, and VT.
Arace has delivered all PFS/PLA contracts on-time or ahead of schedule. The firm has never defaulted on any PFS/PLA contract. We are a certified vendor of PLA Services for the Office of General Services of New York State.
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