PLAs Serve to Create Jobs, Expand Growth In a Market Dedicated to Harmony with Labor
By JOHN JORDAN
WHITE PLAINS—For more than 30 years the building trades in Westchester and the Hudson Valley have used Project Labor Agreements as a critical vehicle to secure work on major public and private construction projects.
Labor leaders extoll the virtues of the PLA that they say bring cost savings, labor stability, a qualified workforce and commitments to timely completion schedules. For the building trades, PLAs ensure prevailing wages are paid and union participation in all elements of construction.
Through both good and harsh economic times, public owners, contractors and organized labor have signed these pre-hire pacts on public works projects at virtually every level of government as well as in the private sector.
More recently, however, battles over use of the construction procurement method have arisen. In February 2023, President Joe Biden announced the implementation of an executive order to require PLAs on federal construction jobs above $35 million. President Biden’s EO advanced an Obama-era rule that encouraged PLAs on federal jobs although it did not mandate the practice.
Photo Credit/MARGARET FOX PHOTOGRAPHY
Two years later, the Trump White House followed in February 2025 by calling for an end to PLAs on Department of Defense projects, ordering its contracting officers to halt the use of PLAs on “large-scale construction projects.” However, months into the new term, the White House reversed its position and let stand the Biden-era rules.
“For clarity, the Trump administration supports the use of PLAs when those agreements are practicable and cost effective, and blanket deviations prohibiting the use of PLAs are precluded,” wrote Russell T. Vought, director of the Office of Management and Budget.
All of this points to the fact that PLAs have both supporters and critics—particularly from local business owners and private developers who complain they are forced as project owners to incur higher labor costs that make some projects financially unfeasible. The trades have mainly worked on PLAs in the public arena because their efforts have been often thwarted on many residential development projects in Westchester’s major cities, blaming weak regulations governing qualifications for public incentives.
In March 2025, William “Bill” Banfield, then assistant executive secretary-treasurer of the North Atlantic States Regional Council of Carpenters, met head-on those criticisms of PLAs in an op-ed published in Crain’s New York Business.
Mr. Banfield wrote: “Unions are a convenient scapegoat for construction developers looking to assign blame for price increases, but a deep dive into the evidence tells a different story. The main reason construction costs have increased is because the cost of materials, such as lumber and steel, continues to increase. The specter of new tariffs on countries such as Canada, where American contractors source raw materials, also complicates near-term planning. Insurance costs are also rising, in part because of the higher rates of accidents at under-trained, non-union job sites.”
He then charged that those who oppose PLAs and other union-backed protections do so “because their business model relies on using lower cost, untrained workers—many from out-of-state. Non-union contractors frequently misclassify their employees as independent contractors, enabling them to underpay workers and avoid providing benefits. They underbid local contractors by cutting corners and then they take their profits and move on. This hurts workers, but it also hurts other contractors—including honest non-union contractors—who genuinely play by the rules….”
PLAs Still in Use on Federal Projects
And while the Trump Administration initial push-back on the Biden Administration order may be reversed, it’s resistance to PLAs will likely reappear. In May 2025, U.S. District Judge Rudolph Contreras issued a preliminary injunction, finding that the exceptions “effectively nullified” the requirements of Biden’s executive order, which required exceptions to be considered on a case-by-case basis and prospective in nature.
In a memo last month, Office of Management and Budget Director Russell Vought seemed to walk back the PLA restricting memos.
“Over the last several months, some agencies have issued overly broad Federal Acquisition Regulation (FAR) deviations related to project labor agreements and the use of those agreements,” Mr. Vought wrote. “The deviations have signaled an inconsistent administration position relating to the use of PLAs.”
He further noted that the FAR already allows for exemptions from the PLA requirement if market research indicates its inclusion would “substantially reduce” the number of potential bids on a project. And he amended OMB’s memorandum governing PLAs to clarify that if two or fewer are expected, or if the bidders indicate their price would increase by more than 10% due to the PLA requirement, an exception would be warranted.
“Agencies should use PLAs when practicable and cost-effective,” he wrote. “Agencies should rescind any deviations related to PLAs that were issued prior to the date of this guidance. Independent agency interpretation for PLA use should no longer occur.”
Streamlining Management-Labor Issues
PLAs took hold in the Hudson Valley some 30 years ago with its first use on the The Westchester shopping mall in Downtown White Plains. Spearheaded by late-union leader Edward Doyle, the first agreement was negotiated in the early 1990s by the Building & Construction Trades Council of Westchester & Putnam Counties with contractor Whiting-Turner and the developer The O’Connor Group on the $250-million retail project, which was successfully completed in 1995. Hundreds more have followed since then on major public and private infrastructure and development projects, the largest being the construction of the $3.98-billion Mario M. Cuomo Bridge, which first opened to traffic in 2018.
In a December 1993 article in The New York Times on the construction of The Westchester shopping mall, Mr. Doyle and representatives of the developer discussed the county’s first PLA.
At that time, Paul F. Kastner, a senior vice president of marketing for the O’Connor Group, stated: “Although there may have been a perception that the unions in Westchester County were difficult, we were most pleased to discover just the opposite, which is perhaps due to the current economic climate and drought of construction activity in the area.”
“It’s the answer to labor and management issues,” Mr. Doyle said at the time. “It’s the wave of the future.” He explained that no-strike clauses were important to the banks that finance new building projects, and in the case of The Westchester, that concession was the key element in gaining the all-union contract agreement during a recession, The Times reported.
Mr. Doyle, who recently passed away on July 20 at age 86, will long be remembered as the chief advocate of the PLA and as a seer of its pathway to help secure a role for the building trades, in a world fraught with challenges, through consensus and labor harmony.
PLAs Thrive in Lower Hudson Valley
By JOHN JORDAN
BRIARCLIFF, NY—Jeff Loughlin, president of the Building & Construction Trades Council of Westchester & Putnam Counties, Inc., said that PLAs continue to be a key driver to securing work in the building trades. He pointed to the recent PLA negotiated with the developer on the new $330-million headquarters of the New York Power Authority now under construction in Downtown White Plains.
He said the successful conclusion of negotiations with the contractor/developer could also bring more PLAs to future downtown private development projects with the building trades.
Mr. Loughlin explained that the building trades have begun talks with Louis Cappelli and partners on the massive multi-billion dollar proposed redevelopment of the former Galleria mall in Downtown White Plains.
“I think Mr. Cappell finally realizes the value of PLAs,” Mr. Loughlin told CONSTRUCTION NEWS. “There is really no down side to them.” Responding to recent criticism by a business leader on PLAs and prevailing wage requirements, Mr. Loughlin retorted: “If PLAs weren’t bringing something, why would everyone want to enter into one.” He said that, on average between ADR (alternative dispute resolution) and the PLA, a project with a pre-hire labor pact can achieve between 7% to 9% total cost savings.
“PLAs have proven to be cost-effective and the job gets done right,” he said. The latest victory for the building trades was a PLA on the more than $120-million Elizabeth Seton Youth Center project in White Plains. Mr. Loughlin was among the attendees at the Aug. 15 “ground blessing” for the project that was presided over by Cardinal Timothy Dolan of the Archdiocese of New York.
More PLAs Underway
A PLA was secured with the Skanska/ECCO III JV that will upgrade the Hillsview Reservoir in Yonkers on a project valued at approximately $848 million. Another major PLA was approved by the Westchester Joint Water Works for a project to construct the Rye Lake Filtration Plant in Harrison, NY. The contract, valued at $172,761,500, was green lighted on Aug. 12 with the award to Yonkers Contracting Co., Inc.
Edward Cooke, vice president of the Building & Construction Trades Council of Westchester & Putnam Counties, added that the Cappelli-NYPA PLA was a win for both the developer and the building trades. He said that the agreements “are fiscally responsible tools that deliver real savings on both private and public construction projects.”
Mr. Cooke said that these pre-hire pacts ensure that highly trained local craftsmen and women can work within the very communities in which they live, reinvesting wages and benefits directly back into the region.”
Rockland County
Stephen Reich, co-vice president of the Building & Construction Trades Council of Rockland County, said, “I like PLAs… All in all, they are very good and especially for the private sector if you incorporate apprenticeship and local labor-language in them.”
Mr. Reich, who serves as business manager of Laborers Local No. 754 of Chestnut Ridge, NY, said there have been several beneficial PLA projects negotiated recently in the region, the largest being the significant utility and drilling work being undertaken on the $3.5-billiom Champlain Hudson Power Express project. He said most of the work on the project in Rockland County should be completed by November 2025.
He said the power line project has “definitely been a huge economic driver for jobs in the building trades and construction industries, no doubt there. Their promise (of economic benefits) was met.”
PLA Use in the Mid-Hudson is ‘Historic’
L. Todd Diorio, president of the Hudson Valley Building & Construction Trades Council, said that work is plentiful in the region and that the council has secured a host of PLAs in 2025 with a good number of other projects in the pipeline.
Mr. Diorio, who serves as Eastern New York Laborers District Council Business Manager, is also a major proponent of PLAs. He said the Hudson Valley Building Trades are engaged in more PLAs than at any time in their history.
“We just got our first federal PLA for a project at West Point,” he said. Negotiations recently concluded with contractors engaged in the Building 606 project at West Point valued at approximately $150 million.
He said work is ongoing on a number of NYSDOT projects that will be performed under PLAs and two New York City Department of Environmental Protection projects (Upstate Roadways and Ashokan) that will also be subject to PLAs.
Overall work, including PLAs, have all the Mid-Hudson building trades very busy. Laborers Local No. 17 in Newburgh, for example, is seeing a 6% increase in man-hours over the first seven months of 2024, which was a busy year as well, he noted. Mr. Diorio said he expects the building trades will finish off 2025 “very strong.”
Mid-Hudson PLA Projects
- The Rockland Green animal shelter project in West Haverstraw under construction (approximately $20 million);
- Rockland County Sheriff’s Operations Center project (more than $9 million);
- The Rockland County BOCES expansion project is under a PLA, in the process of a rebid;
- Second phase of Grinder project at the Rockland County Sewer District (approximately $8 million);
- Pump Station projects with Rockland County Sewer District (Ecco III Enterprises has the contract valued up to $20 million, Mr. Reich estimated;
- The Lake Sebago renovation project by the New York State Department of Parks & Recreation; Bids were scheduled to go out shortly and project estimates have run between $50 million to $70 million;
- The Town of Clarkstown, West Nyack revitalization (Phase 2) approximately $10 million);
- A multi-jurisdictional PLA (Rockland, Hudson Valley and Westchester) is currently in negotiation with the New York State Bridge Authority on the redecking of the Bear Mountain Bridge. Project value not available at press time. Construction is expected to begin in early 2026;
- HVAC and other capital construction for the Newburgh School District;
- The Champlain Hudson Power Express project;
- Route 17/Exit 122 project in the Town of Wallkill, NY;
- O&W Station redevelopment in Middletown, NY;
- Orange Ulster BOCES capital projects;
- Route 17 paving in Sullivan County to Route 302;
- Road work on Route 94 and 17A;
- The Rondout Water Bypass Tunnel;
- The Mid-Hudson Forensic Hospital in New Hampton, NY;
- The Town of Newburgh Recreation Center;
- The Ulster County Operations Center project.
Published: September 15, 2025.
