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Dive brief:
- More than $7 billion in upcoming construction in New York City will now enter into the project’s new labor agreements, according to a press release from Mayor Eric Adams’ office.
- The agreements standardize labor standards and incorporate community procurement requirements that will shape the way contractors work and deliver upcoming public projects in the city.
- The movement is based Last year’s design and construction PLAN and signals New York City’s broader push to accelerate the delivery of capital while expanding access to union construction careers, the release said.
Diving knowledge:
The New York City move follows a period of scrutiny over PLA mandates at the federal level. A Report of the Office of Management and Budget of June 2025 Underlined agencies should use PLA when possible and cost-effective, although concerns about competition and pricing for large contracts are acknowledged.
New York City’s announcement is important to contractors because it sets the labor and compliance framework for billions of dollars in public construction work over the next few years.
According to the release, the new PLAs apply to a wide portfolio of city-led projects, from recreation centers and libraries to solar PV systems at public schools, as well as upgrades to water treatment plants. City officials say the agreements will streamline delivery by setting consistent wage and benefit expectations in addition to safety requirements.
“We’ve put our money where our mouth is and invested real money in real projects and delivered the good-paying jobs that New Yorkers need,” Adams said in the statement. “If the city is going to build a new library or recreation center, we want to make sure those jobs pay well during the day and the workers get home at night.”
An important component of the agreement is the expansion of a community recruitment and learning initiative launched in June 2024. Since then, nearly 100 procurements totaling more than $7.5 billion have already included community procurement mandates.
In addition, a new memorandum of understanding with the region’s Building and Construction Trades Council and the Building Trades Employers Association will recruit and place 700 pre-apprentices from New York City Housing Authority housing developments and low-income communities.
“For capital projects to reach their true economic potential, it is critical that they create family-sustaining careers for New York workers,” Gary LaBarbera, president of the Building and Construction Trades Council, said in the statement. “PLAs like the ones signed help them do just that and more by establishing fair wages, safety standards and community hiring initiatives that boost learning opportunities and open more paths to the middle class.”
The effort advances Adams’ goal of connecting 30,000 New Yorkers to apprentices by 2030, according to the release. Industry organizations including the New York Building Congress and the Building Contractors Association praised the agreements as tools to deliver public projects faster, as well as boost construction union careers.
“This agreement means faster projects, safer jobs and fairer wages for the unions that build our city every day,” Carlo Scissura, president and CEO of the New York Building Congress, said in the statement. “It opens the door for thousands of learners to earn and learn on real projects.”
