Relates to specifications for public works contracts

BILL NUMBER:S5217

Title of bill

An act to amend the general municipal law, the state finance law, the public housing law, the education law, the public authorities law, the labor law, chapter 560 of the laws of 1980 authorizing the city of New York to adopt a solid waste management law and chapter 892 of the laws of 1971 amending the public authorities law and other laws relating to enabling the dormitory authority to construct and finance dormitories, in relation to separate specifications for public works contracts

Summary of provisions

Section one of this bill amends subdivisions 1 and 5 of General Municipal Law §101 to provide that in the case of contracts for the erection, construction, reconstruction or alteration of buildings, either (1) the person or entity charged with preparing specifications or awarding or entering into such contracts shall prepare separate specifications for plumbing and gas fitting, storm heating, hot water heating, ventilating and air conditioning apparatus, and electric wiring and standard illuminating fixtures, or (2) each bidder on the public work shall submit a separate sealed list of the subcontractors that the bidder will used to perform the work on the contract and the agreed-upon amount to be paid to each for plumbing and gas fitting, storm heating, hot water heating, ventilating and air conditioning apparatus, and electric wiring and standard illuminating fixtures, and in such case, the public work contract shall require each contractor and subcontractor to participate in apprentice training programs.

Sections two through fourteen of the bill make similar amendments to the State Finance Law, the Public Housing Law, the Education Law, the Public Authorities Law, chapter 560 of the laws of 1980 authorizing the city of New York to adopt a solid waste management law, and chapter 892 of the laws of 1971 amending the public authorities law and other laws relating to enabling the dormitory authority to construct and finance dormitories.

Reasons for support

Within New York City, the Wicks Law now requires the preparation of separate specifications for the electrical, plumbing and HVAC components of public works contracts valued over $3 million, except where a project labor agreement is in effect. This threshold, enacted in 2008, represents a substantial increase over the prior threshold of $50,000. Since the adoption of the new Wicks Law thresholds, New York City has entered into six project labor agreements ("PLAs") with the Building and Construction Trades Council of New York City, pursuant to which the City projects savings of more than 300 million dollars for taxpayers. Economic studies conducted to support these PLAs estimated that savings attributable to the lifting of Wicks Law restrictions would amount to approximately 10.35% of total project costs.

While PLAs thus show great promise for achieving savings, such agreements may not be feasible for all of the City's significant public works projects. For large new construction projects, all of the potential bidders are already affiliated with the Building and

Construction Trades Council. As the economy and the construction industry recover, unions may decline to enter into PLAs for some or all of those new construction projects. All such work would, however, remain subject to the City's policy directive requiring bidders to demonstrate that they offer apprenticeship programs approved by the State Department of Labor {with at least three years of successful experience). Eliminating Wicks Law restrictions for these projects would allow the City to capture significant savings opportunities, while in no way diminishing the commitment to union labor.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.