Project Labor Policy

Dormitory Authority Meeting January 25, 2012

WHEREAS, on June 25, 1997 the Board adopted a resolution entitled “Resolution of the Members Of The Board of the Dormitory Authority Creating a Policy Regarding the Use of Project Labor Agreements for construction projects and rescinding a prior resolution relating thereto” (the “Prior Resolution”); and,

WHEREAS, subsequent to the adoption of the Prior Resolution, Labor §222 was enacted and authorizes the Authority to require a contractor awarded a contract, subcontract or other agreement for a project to enter into a project labor agreement (as defined in Labor Law §222) for the work involved with such project provided that (1) the Authority has determined that its interest in obtaining the best work at the lowest possible price, preventing favoritism, fraud and corruption, and other considerations such as the impact of delay, the possibility of cost savings advantages, and any local history of labor unrest, are best met by requiring a project labor agreement and (2) the Authority includes a requirement in its contract documents that all contractors and subcontractors performing work on the project be bound by the terms of the project labor agreement; and,

WHEREAS, Labor Law §222 further provides that any contract or subcontract for projects undertaken by the Authority that are subject to a project labor agreement shall not be subject to the requirements of separate specifications (referred to as the Wicks Law) for plumbing, heating, ventilation and air conditioning, and electrical work; and

WHEREAS, consistent with the provisions of Labor Law §222, the Authority desires to utilize project labor agreements for those projects for which it has determined that the use of such project labor agreement will provide for the cost efficient, safe, quality, and timely completion of the project in a manner designed to afford the lowest costs to the Authority, its clients and the public it represents; and,

WHEREAS, the Authority desires to revise it is existing policy and procedures regarding the utilization of project labor agreements with respect to its construction projects, which revised policy and procedures are attached hereto as Attachment “A”; and

WHEREAS, the Authority has determined that the attached the Memorandum of Understanding by and among the Authority and the Building and Construction Trades Council of Greater New York and Vicinity regarding the use of project labor agreements for certain construction projects located in the City of New York is consistent with the provisions of Labor Law §222 and the revised policy and procedures regarding the use of project labor agreements by the Authority;

Dormitory Authority Meeting January 25, 2012

NOW THEREFORE BE IT RESOLVED as follows:

1. The Members of the Board of the Dormitory Authority hereby rescind the prior policy of the Board regarding the utilization and negotiation of project labor agreements adopted under the Prior Resolution and in its place, adopts the attached Policy regarding the same; and,
2. The Members of the Board of the Dormitory Authority hereby authorize the execution of the Memorandum of Understanding attached hereto as Attachment “B”; and
3. This Resolution shall take effect immediately.

POLICY OF THE DORMITORY AUTHORITY REGARDING UTILIZATION AND NEGOTIATION OF PROJECT LABOR AGREEMENTS

1. OBJECTIVES OF PROJECT LABOR AGREEMENTS. The Authority shall use a Project Labor Agreement (“PLA”) in connection with a project only if it is demonstrated that the use of a PLA is in furtherance of the purposes of the competitive bidding statutes as required by Labor Law §222. These purposes include the prevention of favoritism and abuse and the obtaining of goods and services at the lowest possible price. Therefore, PLAs will be used only in connection with projects for which it has been determined that a PLA will provide significant economic savings. To substantiate any projected economic savings, the Authority will require a properly documented study demonstrating that the use of a PLA will promote the objective of completing the project at the lowest reasonable cost. Such a study may be conducted for a specific proposed project or for a group or class of projects for one or more clients, including new construction or renovation projects.

   No PLA shall discriminate against union or non-union contractors or employees. In addition, so long as a PLA is in furtherance of the primary objectives described in the preceding paragraph, a PLA may also be used to achieve other subsidiary purposes. These objectives may include such goals as: improved employment opportunities for minorities, women and economically disadvantaged individuals; maximizing project safety conditions; increasing apprenticeship levels; and ensuring a reliable source of skilled and experienced union and non-union labor. These purposes, however, shall not be considered as primary objectives in evaluating the need for a PLA.

2. PROCEDURES FOR APPROVAL OF A PLA. A PLA shall not be utilized in connection with any Authority construction project unless there has been compliance with paragraphs (a), (b), (c) and (d) of this Section before a PLA specification is included in any contract.


1. A PLA Impact Analysis fulfilling the requirements of Section 3 of this Policy is prepared;
2. The members of the Board have authorized the use of a PLA for the construction project in question or for categories or types of projects that include the construction project in question;
3. The entity for which the Authority is undertaking the construction project has consented to the use of a PLA for its project; and
4. The President or his designee, after negotiations of the PLA are complete, finds that the terms of the proposed PLA are in furtherance of the objectives of this Policy and consistent with the PLA Impact Analysis.
5. The President or his designee, after negotiations of the PLA are complete, finds that the terms of the proposed PLA are in furtherance of the objectives of this Policy and consistent with the PLA Impact Analysis.

In the event the Dormitory Authority utilizes a PLA and lets one or more contracts for work to be performed pursuant to such agreement, it shall be forwarded to the Commissioner of Labor for a determination of the interaction, if any, between Article 8 of the Labor Law and the agreement.

3. IMPACT ANALYSIS OF PLA. Any analysis seeking to justify the use of a PLA on a given project or type or categories of projects must demonstrate that the inclusion of the project labor agreement specification in contracts will result in the lowest reasonable cost because of the size, complexity and duration of the project. The analysis should consider such factors as:


1. the percentage of union and non-union contractors expected to bid on the project;
2. an analysis of local collective bargaining agreements to determine their number and diversity and whether a project labor agreement will result in significant cost savings by harmonizing their divergent provisions;
3. the likelihood that labor unrest will occur on the project and the economic impact that any delays resulting from such unrest will have on the project or the facilities being improved thereby; and
4. an analysis of the size and likely duration of the project to determine whether a PLA will be beneficial by providing continuity in the terms and conditions that will govern a project through its completion.

In documenting how the PLA will achieve significant economic savings, the analysis should consider how the PLA will alter provisions in existing collective bargaining agreements relating to, among other things, (i) wages, including provisions relating to overtime and shift differentials; (ii) work rules and practices; and (iii) productivity, safety, efficiency and dispute resolution. The analysis should also recite any subsidiary proposed objectives proposed to be achieved by the PLA and provide how the PLA will facilitate those objectives.



4. OTHER PROVISIONS. The Authority shall not be a party to any PLA and shall have no liability whatsoever under any PLA. Nor shall anything in a PLA be construed as limiting the sole discretion of the Authority to determine which contractors shall be awarded contracts for a project or to terminate, delay or suspend the work, in whole or in part, on a project.

DATED: January 25, 2012