Page 54 - BusinessWest March, 21, 2022

PLAs
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construction industry has one of the highest con- centrations of small business participation, well over 80%. Some argue that PLAs put small non-union construction businesses at a disadvantage because they increase the cost of doing business. Considering the fact that most small businesses in the construc- tion industry are non-union, PLAs put them at a great disadvantage.
While PLAs are often applauded by many labor analysts for creating long-term project stability, opportunities to include minority contractors and small ‘mom-and-pop’ contractors, and better training for workers, PLAs also increase the cost of construc- tion by requiring payment of union wages to non- union workers, something greatly detrimental to the financial interests of small businesses that wish to partake in these construction jobs.
Architects
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the architect of record on the building expansion. “We don’t know if the state will ever go back to a
smaller square-foot-per-child standard, but we want- ed to be ready in the future for another pandemic or other event that requires keeping children spaced apart,” she explained.
Add to these challenges and adjustments the ongoing supply-chain issues and escalating prices of materials, which together bring new levels of com- plexity — and stress — to designing projects and see- ing them to completion
As part of a dormitory renovation at Elms College, Hanifan was planning for a certain type of carpet only to be told that, if it even gets produced (and that’s a
In addition, PLAs generally require non-union contractors to pay employee benefits twice — once to their employees and once to the unions that oversee the project, often making it too costly for non-union businesses to compete for these jobs in the first place. Non-union contractors often must pay into underfunded and mismanaged union pension plans, of which their employees wouldn’t see the benefits unlesstheyjoinedtheunion.Asmallbusinessmust look at these costs associated provisions, among other things, to assess the risks and costs of enter- ing into this type of arrangement. All businesses at
all levels should make sure to do the short-term and long-term math before deciding whether to get into one of these arrangements.
It is important to note that the Biden EO does not require construction companies to unionize and does not apply to construction projects controlled by local
big if ), there will be a 16-24 week lead time. He has already begun adjusting the plan because the proj- ect must be completed before the fall semester in September.
“We will look at other colors and if we can’t get those, we will have to look at other manufacturers.”
This constant uncertainty often puts his municipal clients in a tough spot.
“No one wants to hear that prices have spiked and everyone knows prices don’t tend to go down,” Hani- fan said. “So, there is a lot of indecision on whether to go ahead with the project or wait to see if prices come back down at some point.”
While supply chain delays and rising costs are still part of daily life, a sense of optimism creeps in as the
or state governments, even if they receive federal funding. Nevertheless, the PLA mandate could be catastrophic for many small businesses, often touted by many politicians as the backbone of the American economy. u
Alexander Cerbo, Esq. is an attorney who specializes in labor and employment-law matters at the Royal LawFirmLLP,awoman-owned,women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council; (413) 586-2288; acerbo@ theroyallawfirm.com
weather becomes warmer and COVID mandates get relaxed.
“It’s been a tough couple of years, but I think we’ve turned the corner,” Tierney said.
Hanifan acknowledged that in the immediate short-term, supply chain issues will continue because manufacturers are under pressure to get materials out as fast as they can.
“Eventually they will be able to re-stock and fill their warehouses once again,” Hanifan said. “It may be a few years out but I’m optimistic it will happen.”
All it takes is remaining flexible and making adjustments when necessary. u
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