Payment in pension plans of underfunded and poorly managed unions can expose entrepreneurs to massive pension withdrawal obligations. Depending on the status of a unionized pension plan for several employers, signing a PLA could bankrupt a contractor or prohibit contractors from qualifying for the construction obligations necessary to build future projects. A PLA is a comprehensive pre-lease agreement that allows owners and contractors to access a highly skilled workforce required for complex projects. A PLA: Sets working conditions in advance so that contractors are able to provide specific offers. Eliminates cost overruns and project delays. Saves on property, quality and cost for homeowners and/or taxpayers. Promotes the growth of our communities. ATPs are particularly useful for large, complex construction projects because they simplify the process and facilitate project delivery between deadlines and budgets. Through negotiation, a PLA sets salaries, hours and schedules before the start of the project. THE AEPs do not impede competition or limit tenders to union contractors. A PLA is available to all contractors who accept its terms. No surprises, no cost overruns, no appointments and no budget with the work done safely by well-trained construction workers. The agreements have been used in the United States since the 1930s and were first used in the 1980s for publicly funded projects.
In these cases, the public authorities have made the signing of ATPs a prerequisite for working on taxpayer-funded projects. This type of ALP, known as a government-mandated ALP, is different from a PLA that is voluntarily carried out by public or private works contractors – as NNRA allows – and a PLA that has been mandated by a private agency for a privately funded construction project. Executive orders adopted since 1992 have had an impact on the use of mandatory PLAs for federal construction projects, and the last order issued by President Barack Obama in February 2009 encourages their use by federal authorities. The use of PLA is rejected by a number of groups that claim that the agreements discriminate 30/10 contractors and do not improve efficiency or reduce the costs of construction projects. THE PTPA studies have mixed results, with some studies concluding that PTPAs have a positive effect, while others find that agreements can increase costs and have a negative impact on contractors and non-unionized workers.