The Board of Governors of Wayne State University has a strong interest in awarding construction contracts in a manner that will ensure the highest standards of quality and efficiency at the lowest responsible cost; that save money by reducing the risk of delay and cost overruns due to labor disputes; that will ensure that work will be performed by a highly skilled workforce; and that will ensure that workers are paid fairly and provided safe working conditions.

The Board of Governors believes that a Project Labor Agreement (PLA), which is a form of pre-hire collective bargaining agreement covering the terms and conditions of employment on a specific construction project, is an effective means of accomplishing these ends.

The Board of Governors believes that project labor agreements provide effective means for the peaceful, orderly, and mutually binding resolution of labor issue disputes without labor disruption, which can otherwise impose costs and delay.

General Principle.  Except as provided in this policy, contracts requiring prior approval of the Board of Governors between the University and a construction manager, design builder, or general contractor will include a requirement that the construction manager, design builder, or general contractor, with its contractors and subcontractors on that project, enter into a PLA in connection with that project, and may specify one or more of the items that the PLA must contain.

[Except as provided in this policy, contracts requiring prior approval of the Board of Governors between the University and a developer will include a requirement that the developer requires that it, or its construction manager, design builder, or general contractor execute a project labor agreement.]

Approval Requirement.  Prior approval of the Board of Governors is required for the designing and implementation of construction or renovation of a building or other real property improvement or maintenance project if:

•   the project’s estimated cost would exceed $250,000.

• the project would change the height or footprint of an existing building other than a temporary building; or   

• the project would make a material long-term change to the landscape.   

Project Labor Agreements.  A project labor agreement (PLA) is an agreement between a construction manager, design builder, or general contractor engaged on a University construction project and the union(s) representing workers on that project, covering the terms and conditions of employment on that project.

• If an emergency, such as damage or destruction resulting from fire, flood, or explosion, compels immediate action involving construction, renovation or repair, so that obtaining prior Board of Governors approval would jeopardize, for example, the safety of individuals, the security or viability of a building or increase the later cost of restoration or replacement, the administration is authorized to undertake and continue to implement measures to secure the building and to remediate the damage or destruction arising from the emergency, and to approve work necessary in light of the circumstances.  In such event, the Vice President for Finance and Facilities will immediately notify the Chair of the Board and the Chair of the Budget and Finance Committee.

• This policy recognizes that numerous contractors have established relationships with unions independent of their relationship with Wayne State University.  Nothing in this policy shall be deemed to require that a contractor execute a PLA when doing so would conflict with such a relationship.