The Project Agreement
The Sports Commission and the City deserves great appreciation for their decision to adopt the Project Labor Agreement as a key component to reduce new construction costs now and maintenance and repair costs in the future. This contract initiative, endorsed and used by most cities and private corporations to manage large and unique projects, has not been the subject of much discussion in the press and by the Council.
 
Although the Bush Administration greatly limited the use of project labor agreements upon taking office for federal and federally assisted projects with an Executive Order in 2001, it would not affect the stadium infrastructure expenses if paid directly by the federal government outside the scope of the PLA. Various stadiums built since 2001, including Safeco Field, have used a large number of assisted projects to make them financially viable although built under an effective PLA.
 
The Bush Administration, in issuing the Executive Order, ignored the fact that most PLA’s are issued by private sector owners often to construct facilities that will be operated in a nonunion setting because they save money, increase job site safety, increase the rates of participation of minorities and women and help meet a set construction schedule.  A well-drafted PLA is a major factor in insuring that a large scale project management team will be diligent in meeting its budget and schedule, often under the most difficult construction circumstances. For example, the PLA for the proposed stadium has a steep financial penalty for work slowdowns or labor disruptions. The PLA also seeks to provide a sufficient supply of skilled workers from our City and establishes training programs for providing the skilled workforce for our future.
 
Importantly, the PLA includes an effective construction manager position and a Project Task Force composed of 11-15 representatives from across the community to “police” the project for a variety of factors outside of the cost considerations and schedule. Beyond the schedule and budgetary considerations, the inclusion of ongoing skilled labor training requirements and health and welfare benefits will provide the City with resident craftspeople for the future. The PLA will put in place many initiatives that will greatly reduce the expensive costs of training and benefits for the City. These bona fide citizens will work in skilled positions for companies with real benefits and a real future. This will reduce labor costs for the years to come as a greater number of skilled workers reside in our City and are able to work for our local firms or start their own firms. Importantly, using a large number of City firms and residents will return substantial tax revenues to DC’s tax base as compared to utilizing non DC residents and firms on a larger scale. It is also possible that more construction firms will move into the District if such PLA’s become more common on DC public construction projects of significant size.
 
Too often cities build monumental projects but have few if any local firms or workers to even bid the job. Too often they contract with firms without worker health or pension benefits, shifting these costs to local taxpayers. This agreement will greatly reduce the odds of that happening in Washington, DC. In addition, the PLA includes incentives and provisions to increase the use of local, small and disadvantaged companies in our City. Veterans with experience and interest in construction will also be given special consideration for employment and training. The Sheet Metal and Air Conditioning Contractors Association, my employer, is proud to have been involved from the beginning with the “Helmets to Hardhats” veteran recruitment initiative that will be utilized in the stadium’s construction.