PLA_Belman_EffectPLANewEngland
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PLA_Belman_EffectPLANewEngland
The Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEnglandtrial RelationsMichigan State University.Russell OnnistonSchool of Laboi and Industrial RelationsMichigan State University.William SchriverUniversity of Tennessee KnoxvilleandRichard KelsoUniversity of Teiuiessee KnoxvilleCorresponding author is Dale Behnan. School of Labor and Industrial Relations. PLA_Belman_EffectPLANewEngland South Kedzie Hall. MSU. East Lansing. MI 48S23. He may be reached by e-mail at drdalefa msu.edu1https://khothuvien.cori!Special thanks to David Weil.PLA_Belman_EffectPLANewEngland
Robert Triest.. the New England Regional Workshop of the Boston Federal Reserve. We also thank the Center to Protect Workers Rights for their financiThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEnglandver the application of these pre-hire labor contracts in public construction projects. In particular. (lie debate over PLAs lias centered around then potential to reduce the costs of such projects, a burden bourne by taxpayers when it conies to public-sector construction. Using data from F.w. Dodge. PLA_Belman_EffectPLANewEngland the Beacon Hill Institute heated up this argument in 2003 by using simple regression models to imply that the presence of PLAs had an enormous impactPLA_Belman_EffectPLANewEngland
on a cosl-pcr-square-fool measure of school construction m Massachusetts. Illis current study represents a significant expansion of Beacon Hill’s worThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEngland. Illis is particularly important given the possibility dial schools built under PL As are inherently more complex, a result that would inaccurately attribute increased expense to the presence of the PT.A itself in simple cost models. Thus, using a survey of local officials and architects of schools PLA_Belman_EffectPLANewEngland built between 1996-2002. our study finds the following:•We do not find evidence that the presence of a project labor agreement increases school constPLA_Belman_EffectPLANewEngland
ruction costs in cost models that account for school complexity and differences in location..•Simple cost models incorrectly attribute increased constThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEnglandLA tend to have more advanced features.•Extending the sample area beyond Massachusetts damps the perceived cost effect of project labor agreements.•There exists a sizeable discrepancy between the cost estimates of schools from the F.w. Dodge Construction Reports and the actual cost paid by the schoo PLA_Belman_EffectPLANewEnglandl district, suggesting future caution HI the reliance on such reports.•Estimates of the cost models are particularly sensitive to outliers and the spePLA_Belman_EffectPLANewEngland
cific sample selected, specifically because of rhe idiosyncratic nature of school construction and the small sample size (n 70) addressed here.Given tThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEngland labor agreements on public-sector projects. With dial in mind, the current research finds no statistically significant evidence dial PLAs impact the actual cost paid by taxpayers for school construction projects. Perhaps more importantly, the findings of this study indicate rhe appropriateness of h PLA_Belman_EffectPLANewEnglandighly-developed cost models, and the potential bias of rhe PI.A effect in overly-simplified attempts to isolate its impact.I.IntroductionConstruction-PLA_Belman_EffectPLANewEngland
industry project labor agreements (PLAs) are collectively-bargained prehire labor contracts negotiated between properly owners and building trades uniThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEnglandd compensation are adhered to by successfill bidders, even those who operate non-union. In exchange, unions typically agree to harmonize work scheduling provisions among the trades, forego certain types of premium pay or pay increases, and give up the right to strike for the diuation of the project. PLA_Belman_EffectPLANewEngland Once negotiated, adherence to the PL A becomes a requirement of the bidding process.Over the last 20 years, building trades unions have increasinglyPLA_Belman_EffectPLANewEngland
made use of PL As to protect and expand their position in construction markets This has engendered a vigorous response from open-shop contractors, parThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEngland to many of the PLAs proposed for large, publicly-funded construction projects such as the Boston Harbor project and work on the New York State Throughway. The debate over the effects of PLAs has been fought over such issues as project timeliness, quality, safety, training, minority employment, empl PLA_Belman_EffectPLANewEnglandoyee benefits and labor peace. The central dispute 111 this struggle has. however, been over the effect of PL As on the cost of public construction.ToPLA_Belman_EffectPLANewEngland
help address this question, the cun ent research investigates the effect of PL As on the cost of new school construction in New England between 1996 The Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and Indust PLA_Belman_EffectPLANewEnglandel of school construction costs and estimate the impact of PL As on2school cost. Our results indicate that, although simple models suggest that PLAs increase the costs of school construction. more fully-specified models that better account for projectcharacteristics do not find a meaningfill relatio PLA_Belman_EffectPLANewEnglandnship between the PLAs and construction costs.Our research also indicates that schools built under PLAs are often more complex projects than those buiPLA_Belman_EffectPLANewEngland
lt without PLAs and that, absent appropriate controls for the nature of the construction, the increased costs associated with complexity are erroneousThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and IndustThe Effect of Project Labor Agreementson the Cost of School Construction in New England Working Paper Senes2005byDale BeimanSchool of Labor and IndustGọi ngay
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