2019/10/16 Council Agenda Packet

WASHINGTON POLICY CENTER lmproviny lives ttirouglr market solutions POLICY BRIEF The Anticompetitive Effects of Government- Mandated Project Labor Agreements on Construction in Washington State Paul Bachman,MSIE,The Beacon Hill Institute for Public Policy Research William F. Burke,BS,The Beacon Hill Institute for Public Policy Research David G.Tuerck, PhD,The Beacon Hill Institute for Public Policy Research Introduction by Erin Shannon, Director,Center for Worker Rights June 2019 Key Findings 1. This report explores the use of government-mandated Project Labor Agreements (PLAs) on publicly funded infrastructure construction projects in the state of Washington,and examines the effects PLAs had on the number of bidders for,and the final cost of,the projects. 2. The report examines and compares 125 construction projects built since 2003,62 of which were built with PLAs,and 63 built without a PLA. 3. The findings of the report confirm multiple studies that conclude PLAs artificially restrict competition and increase project costs. 4. The analysis shows a PLA on the infrastructure construction projects built in Washington reduced the number of bidders by 18.26 percent. 5. The analysis shows the reduced competition in the projects completed with a PLA increased the cost of these publicly funded projects by $589 million to $879 million. 6. As shown in other states,the exclusionary provisions of PLAs in Washington unfairly discourage competition in the bidding process,and have a significant economic impact resulting in higher costs for taxpayers. 7. Washington state would benefit from a policy that abandons discriminatory PLAs in favor of fair and open access to public construction projects to foster robust competition, reduce costs and increase public value for taxpayers.