Dive Brief:
- More than $7 billion in upcoming construction in New York City will now fall under new project labor agreements, according to a news release from the office of Mayor Eric Adams.
- The agreements standardize labor rules and embed community hiring requirements that will shape how contractors staff and deliver upcoming public projects in the city.
- The move builds on last year’s design-build PLA and signals New York City’s broader push to accelerate capital delivery while expanding access to union construction careers, according to the release.
Dive Insight:
New York City’s move follows a period of scrutiny over PLA mandates on a federal level. A June 2025 Office of Management and Budget memo underscored agencies should use PLAs when practicable and cost-effective, though acknowledged concerns about competition and pricing on large contracts.
The New York City announcement is significant for contractors because it sets the labor and compliance framework for billions of dollars in public construction work over the next several years.
The new PLAs apply to a broad portfolio of city-led projects, from recreation centers and libraries to solar photovoltaic systems at public schools, as well as upgrades at water treatment plants, according to the release. City officials say the agreements will streamline delivery by establishing consistent wage and benefit expectations in addition to safety requirements.
“We’ve put our money where our mouth is and invested real dollars in real projects and delivered the good-paying jobs New Yorkers need,” said Adams in the release. “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 get workers home safe at night.”
A major component of the deal is the expansion of a community hiring and apprenticeship initiative launched in June 2024. Since then, nearly 100 procurements totaling more than $7.5 billion have already included community hiring 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 developments and low-income communities.
“In order for capital projects to reach their true economic potential, it is critical that they generate family-sustaining careers for hardworking New Yorkers,” said Gary LaBarbera, president of the Building and Construction Trades Council, in the release. “PLAs like the ones signed help them to do just that and more by establishing fair wages, safety standards and community hiring initiatives that boost apprenticeship opportunities and open up more pathways to the middle class.”
The effort advances Adams’ goal of connecting 30,000 New Yorkers to apprenticeships by 2030, according to the release. Industry organizations, including the New York Building Congress and the Building Contractors Association, praised the agreements as tools for delivering public projects faster, in addition to increasing union construction careers.
“This deal means faster projects, safer jobs and fairer wages for the union trades who build our city every day,” said Carlo Scissura, president and CEO of the New York Building Congress, in the release. “It opens the door for thousands of apprentices to earn and learn on real projects.”
