Unions ink deal with School Construction Authority.

More than 100 city landlords that lease to the Department of Education must now hire construction contractors that pass the School Construction Authority standards, according to an agreement signed by Mayor Michael Bloomberg and union leaders this week.

Previous to the Memorandum of Understanding, the landlords could hire contractors that used unskilled or non-union labor, which led to less than satisfactory workmanship, according to the mayor.

"Over the past two years, we have dramatically improved the school construction process, and today's agreements are the next great step in our reform efforts," said Mayor Bloomberg.

"By uniformly reducing premium rates and holding contractors to SCA requirements and standards, these agreements will produce tremendous savings for the City and improve the quality of construction in our schools."

Under the MOU, the SCA will commit that all contractors performing work on DOE leased buildings, whether working for the SCA or working directly for the building landlord, must comply with all SCA requirements and standards set out the the MOU.

If landlords do not adhere to the agreement, then "the SCA will not lease in their buildings," said Edward Malloy, president of the Building and Construction Trade Council. "Over the last few years, we (the unions) have lost market share in the public sector," Malloy said.

"These agreements represent a landmark in the relationship between the City and our industry."

These contractors will be required to qualify through the SCA's rigorous prequalification process, including background investigations by the Inspector General. In addition, contractors will be required to have an approved apprenticeship program and pay workers prevailing wages.

In the past there was no consistency or oversight for standards, and as a result, projects were often delayed facilities were often sub-standard. SCA is currently building 95 new schools under the five-year plan.

Of the more than 1,200 existing school buildings in New York City, 105 are currently leased by DOE. As part of this effort, SCA expects to spend more than $1 billion on creating new schools from facilities that the SCA does not own but will be leasing in the future.

In addition, a Project Labor Agreement was also formed to oversee the relationship between the SCA, its contractors, and labor with respect to existing school buildings that are scheduled for rehabilitation and renovation projects under the DOE's $13.1 Billion Five Year Capital Plan, which began in July of 2004.

The PLA will provide one consistent set of guidelines that will govern all work rules, holidays, scheduling, and, most importantly, a 5% premium rate for work at night and during off-peak hours. In the past, collective bargaining agreements have varied for each construction trade, and premium rates could range from 12% to as much as 27%.

These new guidelines, which will apply to all projects valued at over $1 million, are estimated to result in a savings of $500 million over the next five years, which will be reallocated towards capital needs as part of the yearly Capital Plan amendment process.

In addition, the PLA increases the ratio of apprentices on covered projects, likely increasing apprenticeship opportunities for public high school students who enter through the Construction Skills 2000 program.