Before the Washington Convention Center construction project entered into a PLA, estimated costs stood at $650 million. After the PLA, actual construction costs reached $850 million.
Due to the PLA, qualified and local nonunion contractors and their employees did not bid on the project. Instead, the construction manager imported numerous out-of-town union contractors to perform various trade work.
WHAT HAPPENED
250
$Million difference between estimated and actual project cost
RESULTS
- Qualified and local nonunion contractors and their employees did not bid on the project due to the PLA. Instead, the construction manager imported numerous out-of-town union contractors to perform various trade work. The project produced fewer economic benefits and generated fewer job opportunities for local workers than would have been the case without a PLA.
- In April 2001, midway through PLA construction, part of the convention center roof collapsed. Engineers probing the collapse ultimately determined that improper installation of a 180-foot steel truss by unionized ironworkers employed by an out-of-town contractor contributed to the collapse. The supplier of the steel, Havens Steel of Kansas City, later declared bankruptcy.
- See packet of supporting information here.