IMPACT

Improving relationships and cooperation between labor and management in the construction industry motivated the formation of the Illowa Construction & Labor Management Council. In further pursuit of that goal, Illowa developed the IMPACT Agreement, which has proven its success on more than 260 construction projects since its inception in 1989. Under IMPACT, contractors and the building trades work in partnership with clients to deliver timely, budget-conscious construction projects with a focus on quality craftsmanship.

Increasing

Markets

Productivity

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Construction

Teamwork

IMPACT is much like a business plan for construction projects. It’s a contract made between an owner, contractor or construction manager and the various union trades employed on a project. Contracts like these are called Project Labor Agreements, or PLAs.

IMPACT ensures all parties on the job work under the same guidelines, including dispute procedures. By standardizing wages, benefits, starting times, overtime rules, holidays and more, IMPACT effectively stabilizes construction budgets and schedules. Project owners and contractors use a single set of rules for every laborer. There are no work stoppages, and if there is a dispute, everyone knows exactly how it will be handled.

IMPACT assures completion of a high-quality project in the most cost efficient and timely manner. The IMPACT Agreement provides:

• Increased productivity from a stable, reliable workforce
• Efficient, experiences contractors
• Highly trained, professional craftspeople
• A guarantee of zero work stoppages
• Stringent safety standards
• High-quality workmanship

Project Labor Agreements, like IMPACT, are construction labor agreements typically limited to a single project. Both public and private owners use PLAs to ensure major construction projects proceed in a timely and cost-efficient manner. A PLA generally includes mutually agreed upon guidelines for hiring, scheduling, wages, costs, production incentives and deadlines that remain in place for the duration of the project.

PLAs are a useful mechanism in any construction project involving a contractor and a range of skilled workers from different trades. They are designed to maximize efficiency, stability and productivity. PLAs benefit everyone involved: employers developers, contractors, workers, unions, local and state economies, and the public.

Yes, non-union contractors can bid on the projects as long as they agree to abide by the wages, benefits, and other conditions specified in the IMPACT or PLA contract. Non-union contractors have participated in IMPACT and other PLA projects throughout Illinois, Iowa and the United States.

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."

Public-sector PLAs must comply with competitive bidding statutes and cannot legally exclude any contractor from the bidding process.

No, both union and non-union contractors are free to bid on projects covered by IMPACT. Because both union and non-union contractors are free to bid on projects covered by PLAs, they avoid the favoritism that competitive bidding laws are designed to prevent. Contract awards under IMPACT are often made to both union and non-union companies. Non-union contractors are not required to become union contractors, that is, signatories to the respective area craft agreement. They are only required to sign the IMPACT Agreement and abide its rules.

Organizations representing non-union contractors have challenged the fairness and legality of some PLAs. But in endorsing PLA use, the U.S. Supreme Court has made clear contractors are free to participate or not participate in PLA bidding processes. Contractors may alter their usual mode of operation to secure business opportunities requiring a PLA or seek business elsewhere. This applies to projects in both the public and private sector.