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Project Labor Agreements (PLAs) in NYC Construction

A Project Labor Agreement is one of the most powerful — and most misunderstood — tools in the NYC construction owner's toolkit. Negotiated before a project breaks ground, a PLA shapes labor relations, wage obligations, and dispute resolution for the entire project duration. Getting it right at the outset avoids costly renegotiations mid-construction.

What Is a Project Labor Agreement?

A Project Labor Agreement (PLA) — also called a Project Labor Contract (PLC) or Construction Labor Agreement (CLA) — is a pre-hire collective bargaining agreement negotiated between a project owner and one or more building trades unions. It governs:

  • Wage rates and benefits for all covered workers on the project
  • Working hours, shifts, and overtime rules
  • Grievance and dispute resolution procedures (no-strike / no-lockout provisions)
  • Jurisdictional assignments between trades
  • Apprenticeship utilization requirements
  • Safety and drug testing protocols

Every contractor and subcontractor working on the project — regardless of their own union status — must adhere to the PLA terms as a condition of their contract. Non-union shops can work on a PLA project; they simply must hire through union hiring halls or agree to union terms for the duration.

When Do You Have a PLA?

PLAs are common (and sometimes mandatory) on:

NYC public construction projects
NYC Executive Order 2022 requires PLAs on capital projects over $35M managed by certain agencies. The NYC Building Trades Council (BCTC) is the signatory union on most city PLAs.
Federally funded projects
Presidential Executive Orders have periodically required PLAs on federal construction over $35M. The current status depends on the administration — confirm before bidding.
Owner-initiated PLAs on private development
Developers pursuing 421-a successors, affordable housing tax credits, or PILOT agreements often negotiate voluntary PLAs with the Building Trades to ensure labor peace and workforce continuity on large, complex projects.
University and institutional construction
Major institutions (hospitals, universities) with ongoing capital programs frequently maintain standing PLAs with the Building Trades covering all construction on their campuses.

PLA vs. Prevailing Wage: How They Interact

On a prevailing wage project with a PLA, both sets of obligations apply simultaneously. The PLA does not replace prevailing wage — it layers on top of it. Key interaction points:

Wages: PLA sets the floor, prevailing wage is the legal minimum

In NYC, PLA wage rates are typically set at the prevailing wage level (since the Building Trades' CBA rates are what the Comptroller uses to set prevailing wage). However, the PLA may specify additional premiums, shift differentials, or specialty pay that go beyond the base prevailing rate.

Classification: PLA defines who does what

A critical function of the PLA is assigning jurisdictional responsibility for each work type to a specific trade. This eliminates (or at least structures) the jurisdictional disputes that can halt work on complex projects. The PLA classification schedule is your reference for which trade's prevailing rate applies to each element of the scope.

Schedule: General vs. Residential

The NYC prevailing wage has two schedules — General (commercial) and Residential. The PLA explicitly specifies which schedule applies. This matters significantly for mixed-use or institutionally sponsored housing projects.

Watch out: If your PLA specifies the General schedule but your financing documents assume Residential rates, your labor budget will be understated by 15–30%. Confirm the schedule before closing on project financing.

Certified payroll: Still required in parallel

On a PLA project that is also a prevailing wage project, contractors must still submit certified payrolls through LCPtracker. The PLA does not waive this statutory obligation. Additionally, the union's Shop Steward and fund trustees conduct their own independent audits of contributions — so there are effectively two parallel compliance verification tracks running simultaneously.

Key PLA Provisions to Negotiate

From an owner's perspective, these provisions in a PLA have the greatest impact on cost, schedule, and flexibility:

No-strike / no-lockout provision
Owner's interest: This is the primary value for an owner — it ensures labor disputes are resolved through grievance arbitration rather than work stoppages that could halt a $500M project.
Subcontractor compliance obligation
Owner's interest: The PLA must explicitly bind all sub-tier contractors. Without a clear flow-down clause, the PLA may not protect the owner from disputes involving lower-tier subs.
Apprentice utilization requirements
Owner's interest: Many PLAs require a minimum percentage of apprentice hours. This can affect productivity and cost if the requirement is higher than the trade's typical ratio. Negotiate a realistic threshold tied to available certified apprentices.
Local hire / targeted hire provisions
Owner's interest: Some PLAs include requirements to hire from specific geographic areas or demographic groups (common on affordable housing or EDC-sponsored projects). These requirements must be tracked and documented by the owner.
Duration and scope
Owner's interest: Define exactly which work is covered (above-grade, below-grade, sitework, MEP, FF&E) and the project start/end dates. Ambiguity in scope creates disputes when phased work or adjacent projects arise.

Using WageHound with a PLA Project

Once you have an executed PLA specifying which wage schedule applies, WageHound helps you:

  • Pull the exact prevailing wage rates for every trade and classification covered by the PLA
  • Build a cost projection by classification using the hours schedule derived from the trade contractor bids
  • Compare contractor-submitted certified payroll data against the WageHound database to flag deviations
  • Track rate changes over the project duration as annual July 1 updates occur

✓ PLA Checklist for Owner's Representatives

  • Confirm whether a PLA is mandatory (NYC EO, federal requirement) or voluntary before budget planning.
  • Verify which wage schedule (General vs. Residential) the PLA specifies.
  • Cross-reference PLA trade jurisdiction assignments against WageHound's union registry.
  • Build labor cost projections using the PLA classification schedule — not generic blended rates.
  • Ensure the PLA includes explicit sub-tier flow-down obligations.
  • Coordinate with legal counsel on apprentice utilization requirements and local hire provisions.
  • Set up WageHound projects to track each trade package's compliance submissions over time.
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