New Study Shows Cost Savings, Stronger Competition, and Job Creation
A new study by the respected research teams at the Illinois Economic Policy Institute (ILEPI) and the Project for Middle Class Renewal (PMCR) highlights compelling benefits of Project Labor Agreements (PLAs) for public and private construction projects alike.
What Are Project Labor Agreements (PLAs)?
PLAs are pre-hire agreements between construction owners (such as private contractors, developers, or public agencies) and building trades unions. These agreements set terms and conditions for employment ahead of project start—helping to stabilize costs, maintain project timelines, and promote a well-trained local workforce.
Key Findings from the ILEPI Study on PLAs
According to the new report:
- Bid competition increases by 14% on PLA-covered projects.
- Each additional bid reduces the chance of cost overruns and increases the likelihood of a final cost below initial estimates by 6%.
- PLAs lower taxpayer costs—especially during periods of high demand and skilled labor shortages.
These findings confirm that Project Labor Agreements lower construction costs while enhancing contractor participation.
Why PLAs Are a Smart Tool for Construction Management
The study demonstrates that PLAs are more than just policy tools—they’re effective construction management strategies. PLAs:
- Ensure job site stability by prohibiting strikes and lockouts
- Improve project coordination on complex infrastructure builds
- Encourage union apprenticeship training programs, building a skilled workforce pipeline
- Maintain high standards for safety, efficiency, and quality
PLAs Support Local Workers and Economic Growth
One of the most impactful benefits of Project Labor Agreements is how they boost local job creation. By ensuring a reliable, well-trained workforce, PLAs:
- Strengthen opportunities for domestic skilled workers
- Expand business access for contractors
- Promote inclusive hiring through targeted workforce development
Learn More About the ILEPI PLA Study
To read the full study, visit: www.IllinoisEPI.org
