Timely Construction: The Effect of Project Labor Agreements on Time to Completion for Public Works Construction in Sacramento County, California

Unique to the construction industry, project labor agreements (PLAs) are pre-hire labor contracts between project owners and unions. The impact of PLAs is debated among industry stakeholders, scholars, and policymakers. While prior research on PLAs has focused on construction costs and bid competition, this is the first known study to assess whether PLAs affect project duration. Through an analysis of 313 public works construction projects in Sacramento County, California, the authors find that PLAs are associated with 15 to 17% faster time to completion than non-PLA projects when controlling for factors such as project cost, project type, and awarding agency. Further, PLA projects are 43% more likely to be completed in the following year than non-PLA projects. This study supports the notion that PLAs protect construction contractors and owners from risk and promote faster completion of projects by ensuring access to skilled labor and harmonizing work arrangements across the various trades.