Union contractors finished Sacramento County projects faster and cheaper, study finds

A new study of 128 Sacramento County public works projects from 2018 to 2022 found union-signatory prime contractors delivered jobs up to 22 days faster and controlled cost growth far better than non-union contractors. The findings matter for public agencies weighing whether labor standards improve project delivery, not just worker pay.

Why it matters: - Sacramento County public agencies spend millions on roads, buildings and schools, so even modest gains in schedule and cost control can save taxpayers money. - The study finds union-signatory prime contractors delivered stronger results on two core public-project metrics: timeliness and final cost. - The report also suggests labor standards and project performance can move together rather than trade off against each other.

What happened: - Researchers reviewed 128 Sacramento County public works projects completed between 2018 and 2022. - The projects included infrastructure, public buildings and schools. - Each project was covered by California’s prevailing wage law. - On 75 projects, or 59%, the prime contractor was signatory to a collective bargaining agreement. - The remaining projects were led by non-union prime contractors. - The report was authored by Dr. Larissa Petrucci of NorCal Construction Industry Compliance and Alma College Assistant Economics Professor Dr. Matthew Hinkel.

The details: - The average starting cost across all projects was about $6.5 million. - The average final cost was $6.75 million. - The average time to completion was 274 days. - Non-union-led projects had average cost increases of more than $500,000. - That cost growth was more than 10 times higher than the average increase on union-led projects. - Union-led projects were completed more than two weeks faster on average. - After regression analyses controlled for project size, location and construction type, union-signatory leadership was associated with cost increases that were 4.9% to 6.4% lower. - The same analysis linked union-signatory leadership to completion times that were 14% to 22% faster, equal to 38 to 60 days. - Petrucci said the data showed union-signatory contractors came in substantially cheaper and were completed much faster than non-union firms. - Petrucci said those results suggest labor standards and project performance are complementary rather than competing goals.

Between the lines: - Labor accounts for about 23% of total public works construction costs, so contractor performance can affect outcomes well beyond wages alone. - The report ties union performance to broader workforce advantages, including supply, safety and productivity. - The article cites other studies linking union construction firms to fewer labor shortages, fewer safety problems and productivity gains of 20% to 30%. - Hinkel said the data shows union-signatory firms are delivering more effectively and reliably on the metrics end users care about most. - Hinkel also said long-term investments in training, safety and job quality appear to be paying near-term dividends on jobsites.

What's next: - The report points to more scrutiny of how contractor type affects public-project delivery in California. - NCIC says it aims to promote equitable contracting and enforce state and federal labor laws across California’s construction industry. - The findings could feed future debates over project labor agreements, prevailing wage policy and contractor selection on public works.

The bottom line: - In this sample of Sacramento County projects, union-signatory prime contractors outperformed non-union contractors on cost control and speed to completion.**