Project labor agreements put taxpayers at risk of millions in extra costs

By the Editorial Team · Saturday, October 17, 2026

Massachusetts has mandated a project labor agreement for the $1.6 billion Sagamore Bridge replacement, requiring all contractors to adhere to union labor rules. Critics warn this move will reduce competition and could increase project costs by an estimated $293 million, raising concerns about taxpayer impact and bidding fairness.

Massachusetts taxpayers are facing potentially higher costs on the $1.6 billion Sagamore Bridge replacement project due to a recently mandated project labor agreement (PLA), which proponents argue will limit competition and increase expenses. The Massachusetts Department of Transportation (MassDOT) has made the PLA a requirement for contractors involved in the construction, obligating both union and nonunion firms to operate under union rules related to hiring, benefits, and working conditions.

A PLA typically standardizes labor terms across a project, but critics contend this approach reduces the number of bidders by excluding companies unwilling or unable to comply with union regulations. A study conducted by the Fiscal Alliance Foundation estimated that PLAs add an average premium of 16.2 percent to project costs, although specific impacts vary. Applying this estimate to the Sagamore Bridge replacement, the foundation projected an additional cost of approximately $293 million.

The Healey administration enacted the PLA requirement for the Sagamore Bridge following the study’s release, signaling a commitment to union labor despite concerns about increased expenditure. This decision aligns with the administration’s broader labor policies but has drawn criticism for potentially limiting competitive bidding and inflating taxpayer costs.

Similar projects in the region have shown patterns consistent with these concerns. In Fall River, several school construction projects that initially included PLAs attracted few bids. When those agreements were removed and the projects were reopened for bidding, competition increased, resulting in savings estimated at $5.8 million. A federal Job Corps project in New Hampshire also experienced a significant reduction in the winning bid—more than $6 million lower—after the PLA requirement was dropped.

In western Massachusetts, a proposed PLA for a Springfield-area water infrastructure project was estimated to add approximately $15.5 million and cause construction delays. A state Superior Court judge later blocked the PLA requirement, emphasizing the importance of open and competitive bidding for public benefit.

MassDOT maintains that its contractor prequalification process and prevailing wage laws provide adequate protections for ensuring quality public construction without necessitating PLAs. Critics question the rationale behind limiting competition through mandatory PLAs, arguing that it restricts the pool of qualified contractors and increases costs for taxpayers.

As the Sagamore Bridge project moves forward under the PLA mandate, debate continues over the balance between labor standards and fiscal efficiency in Massachusetts public construction projects.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.