New Rand Corporation Study Shows PLAs Increase Costs and Add Delays

A new study published by the non-partisan, independent Rand Corporation recently found that the development and construction of affordable housing units subject to a government-mandated Project Labor Agreement (PLA) cost 21% more than units not subject to the PLA. In addition, the highly respected research organization found that units subject to the PLA took 27% longer to complete.

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“After accounting for project characteristics, the actual total development costs of projects subject to the HHH PLA were $92,700 (21 percent) higher, on average, than non-PLA,HHH-funded comparison projects that had an average cost of $585,000 per unit.”