New Hampshire Senate Bill SB274

New Hampshire 2022 Regular Session

• Introduced: 12/14/21
• Refer: 12/14/21
• Report Pass: 1/26/22
• Engrossed: 3/23/22
• Refer: 3/23/22
• Report DNP: 4/27/22
• Report Pass: 4/27/22

Caption

Relative to governmental construction contracts.

Impact

The passage of SB 274 has significant implications for future state construction projects, aiming to ensure that no contractor or subcontractor is compelled to endorse or comply with a project labor agreement as a condition to securing contracts. This is expected to foster a competitive environment that allows for a greater number of parties to bid for state contracts, potentially driving costs down for the state. However, this move comes amidst widespread discussions regarding labor standards and the importance of collective bargaining, which proponents of PLAs argue promotes higher standards in safety, quality, and efficiency on construction jobs.

Summary

Senate Bill 274 aims to modify the procurement process for governmental construction contracts in New Hampshire. The bill specifically states that project labor agreements (PLAs) should not be a part of the competitive bidding process for state government or government-assisted construction projects. By eliminating PLAs from this process, the bill intends to promote open competition and mitigate potential discrimination against bidders based on their affiliation with labor organizations. The decision of whether to utilize a project labor agreement is now left entirely to the contracting parties involved in a project, rather than being a mandated requirement during the bid process.

Contention

The bill has generated substantial debate surrounding labor rights and the balance between competitive bidding and fair labor practices. Opponents argue that removing project labor agreements may lead to an erosion of workforce standards, undercutting worker protections that can enhance project safety and efficiency. They claim that PLAs serve to ensure that skilled labor is maintained, which can lead to higher quality outcomes in construction. Proponents, however, assert that this legislation is a necessary step to increase competition among contractors, which they believe will ultimately serve the public interest by reducing costs and fostering a diverse bidding environment.