Construction Associations Ask Congress to Support Fair and Open Competition Act

WASHINGTON — Associated Builders and Contractors and a coalition of 19 associations and organizations representing the construction industry and business community have sent a letter to Congress expressing support for the Fair and Open Competition Act (S. 403/HR 1284), sponsored by Senator Todd Young, R-Ind., and Rep. Ted Budd, RN.C, and Box opposition to government-mandated project work agreements.

“Co-sponsoring the Fair and Open Competition Act is essential in light of President Biden’s EO 14063 of February 4, 2022, which requires PLAs on federal construction projects of $35 million or more,” said writes the coalition. “PLA mandates exacerbate the construction industry’s skilled labor shortage of 650,000 workers in 2022 by unfairly discouraging competition from quality non-union contractors and their employees, who make up 87.4% of the private labor force of the American construction industry.”

The Biden administration also “favors PLAs over federally aided projects purchased by state and local governments competing for federal dollars authorized and funded by bipartisan legislation — such as the 2021 Investment and Investment Act. infrastructure employment and other bills – which do not require or encourage the use of LPAs on taxpayer-funded construction projects,” the coalition wrote. “Your opposition to President Biden’s pro-PLA EO and any legislative and regulatory language promoting controversial government-mandated PLAs on spending bills, coupled with your support for the Fair and Open Competition Act, create a level playing field in government construction procurement. contracts, increase competition, help small businesses grow, reduce construction costs, and spread the job creation benefits of federal and federally funded contracts throughout the construction industry .

“PLA mandates are bad public policy because they increase construction costs by 12% to 20% because they effectively exclude nearly nine out of 10 American construction workers who choose not to join a union from building construction projects. taxpayer-funded construction,” said Ben Brubeck. , ABC’s vice president for regulatory, labor and state affairs. “These controversial agreements hold a third of employees’ pay for ransom unless they join a union, pay union dues and support the pension plans of struggling unions. PLAs also create excessive cost and risk for high-performing non-union contractors, who built more than half of the federal government’s large-scale construction projects from fiscal year 2009 to fiscal year 2021 and are more likely to be small businesses owned by women and/or minorities. .”

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