According to a new report from the Illinois Economic Policy Institute (ILEPI), project labor agreements (PLAs) in Illinois did not have a statistically significant effect on the cost of projects. The report analyzed more than 2,500 bids on 773 Illinois Capital Development Board building projects between 2017 and 2023 and showed that the award amounts for winning bids were not higher on PLA projects compared to those without PLAs, after accounting for other factors. The report also found that PLAs increased bid competition by an average of 14%, with each additional bid increasing the likelihood that projects would be awarded below their official engineer’s estimates. The study also found that PLA-covered projects had more bidders than non-PLA projects.
