WHY WAS ILLOWA CONSTRUCTION LABOR & MANAGEMENT COUNCIL FORMED?

Illowa was formed in 1985 to enhance relationships and improve cooperation between labor and management in the construction industry.  A marketing study conducted by Dr. Gary Olney revealed a need to complete construction projects in a more efficient and timely manner.  As a result, Illowa developed the IMPACT Agreement which has proven its success on over 220 construction projects since its inception in 1989.  Under IMPACT the building trades and contractors work in partnership with owners and customers to provide the highest quality construction. 

Increasing
Markets
Productivity
And
Construction
Teamwork

WHAT ARE THE BENEFITS OF THE IMPACT AGREEMENT?

IMPACT is much like a business plan for construction projects.  IMPACT is a contract made between an owner, contractor, or construction manager and the various union trade crafts employed on a project. 

IMPACT ensures that all the workers on the job work under the same work rules, including the same dispute procedures.  By standardizing wages, benefits, starting times, overtime rules, holidays, and other technical issues, IMPACT has proven effective at stabilizing schedules and budgets for construction projects.  The owner and contractors are dealing with only a single set of rules for every worker.  There are no work stoppages, and if there is a dispute, everyone knows exactly how it will be handled. 

IMPACT fosters a cooperative relationship between labor and management that is good for business.  For owners it assures the primary goals of completion of a quality project in the most cost efficient and timely basis.  The IMPACT Agreement provides:

*** Increased Productivity from a stable and reliable workforce
*** Guarantees no work stoppages
*** Provides highly trained professional craftspeople
*** Efficient and professional construction contractors
*** Quality workmanship
*** Stringent safety standards

PLA stands for Project Labor Agreement and is used widely across the nation on construction projects for increased productivity, labor stability, improved safety, economic reasons, and cost and scheduling factors.

A Project Labor Agreement (PLA) is an agreement between the building trades and contractors and or owners that applies to a specific construction project.  A PLA generally includes mutually agreed to work and wage rules for the duration of the project, including deadlines, wages, costs, production incentives and hiring. 

PLAs are a useful mechanism in any construction project involving a contractor and a range of skilled workers in different trades.  PLAs provide an arrangement that will maximize efficiency, stability, predictability, and productivity.  Their purpose is to facilitate the completion of a project by getting all participants to agree to certain ground rules.  PLAs benefit everyone involved: the employer, whether public or private sector, developers, contractors, workers, unions, local and state economies, and the public. 

ARE PLAs LEGAL IN PUBLIC SECTOR PROJECTS?

Yes.  In 1993 the U.S. Supreme Court ruled in its Boston Harbor decision that both private and public owners can decide when a construction project should use a PLA.  In its ruling, the Court noted that: "To the extent that a private purchaser may choose a contractor based upon that contractor's willingness to enter into a pre-hire agreement, a public entity as purchaser, should be allowed to do the same."