Posts tagged construction costs
Opinion: Say No to prevailing wage
March 13, 2023 // Prevailing wage mandates artificially lift the cost of government construction projects by forcing bidders to pay the local or, “prevailing,” wage in a particular area. Typically, that means union scale wages. Michigan repealed its prevailing wage law in 2018. The Michigan House of Representatives voted this week to reinstate it. The Senate should vote it down. Research shows prevailing wage laws artificially raise the cost of government construction projects. In a forthcoming study, economist Michael Hicks, co-author of this post, estimates that the cost of road construction is raised by between 8.5% and 14.3% in quality-adjusted road miles. In Michigan in 2018 that would translate to between $5,900 and $9,200 in additional costs per mile. Who foots these extra costs? Taxpayers.
Why the Biden administration’s new Davis-Bacon prevailing wage proposed rule is so troubling for Americans.
June 2, 2022 // Today’s Davis-Bacon requirements are already problematic — driving up overall federal infrastructure costs as high as 10 percent and wages over 20 percent — on top of shifting more work to union over non-union workers despite the fact that over 86 percent of construction workers are not members of a union.
Exclusive: 16 GOP Governors Oppose Biden’s Executive Order Creating Monopoly On Federal Construction Contracts
April 26, 2022 // Reducing competition from some of the best union and nonunion construction firms and workers will exacerbate the construction industry’s skilled labor shortage, delay projects, and increase construction costs by estimates of 12% to 20% per project, which will result in fewer infrastructure improvements, less construction industry job creation, and higher taxes.