Empire StateChapter

Associated Builders & Contractors6369 Collamer Drive

EastSyracuse,NY 13057315.463.7539www.abcnys.org

Associated Buildersand Contractors. Inc.

October 12, 2015

The Honorable Andrew M. CuomoGovernor of New York StateNYSState Capitol BuildingAlbany, NY 12224

Dear Governor Cuomo,

I am writing to urge your administration to study the effects of Project Labor Agreements (PLA)on public construction projects across New York State. Our request is driven by the Staterecently amending its request for proposals (RFP)for the redevelopment of the statefairgrounds and is now considering a requirement for all bidders to agree to a PLA. That's inaddition to rumors of a PLA for-the recently announced STAMP project in Genesee County.

As you may be aware, PLAsare often implemented after a study identifies "projectedll savingsbased on labor agreements. Unfortunately, multiple studies suggest PLAsactually cause asignificant increase in the cost of public construction projects and that the savings are neverrealized.

• A 2010 report by the New Jersey Department of Labor and Workforce Development foundthat PLAs increased the cost of school construction in that state by 30.5%, and also causedschool construction to take around 22 weeks longer to complete.

• A 2010 report by the National University System Institute for Policy Research found thatPLAs increased the cost of school construction in California by 13 to 15%.

• A 2006 report by the Beacon Hill Institute found that PLAs increased the cost of schoolconstruction in New York State by nearly 20%, and suggested that not using PLAswouldhave saved the state between $2.7 million and $8.1 million per school, depending on thesize of the project.

• A recent study for the Kingston School District found that the implication of a PLAwouldreduce competition resulting in an increase of up to 9.74%.

These reports are compelling - but there has yet to be a report that comprehensively studiesthe cost impact of PLAsand whether or not the projected savings were ever realized. Whenyou consider the broad array of public construction projects where PLAshave been applied,including developments such as affordable housing for low- and middle-income families, wemust know if "projected" savings are truly realized or simply a myth. The truth needs to befound once and for all.

Your administration has so often made New Yorkers proud because you are willing to lead thenation on key policy issues, leaving other states to follow. I believe the issue of PLAs presents aprime opportunity for your administration to once again lead the nation.

I therefore ask you to commission a comprehensive study of the effect of PLAson all publicconstruction projects throughout New York State over the past five years. Such a study wouldmost clearly show the cost effects of PLAson construction that is funded by New York Statetaxpayers.

Thank you for considering this request, and I look forward to discussing this matter further withyou and your administration.

Brian SampsoPresident, Empire Chapter, Associated Builders & Contractors

cc: Alphonso David, Counsel to the GovernorJim Malatras, Director of Operations