SMACNA was cited during a recent interview with Tax Notes on the impact of the Davis-Bacon Act provisions within the Inflation Reduction Act on developers seeking to engage on clean energy projects. Stan Kolbe, SMACNA’s Executive Director for Government and Political Affairs, stated that “The incorporation of the Davis-Bacon Act and related rules into the Inflation Reduction Act provisions may have initially worried some clean energy project developers, but for the portion of the industry that already owns large buildings, those rules aren’t a novelty.”
In addition, Kolbe outlined the benefits of including a project labor agreement in place, stating that PLAs “establishes the employment rules, binds contractors and subcontractors, prohibits strikes and lockouts, creates procedures to address disputes, and typically sets compensation for project workers.” In outlining the value of PLAs for developers, Kolbe said, “They give developers confidence about recordkeeping and enforcement.”
SMACNA has been an ardent supporter of these provisions being included within the Inflation Reduction Act, as the prevailing wage requirements open opportunities for the increased utilization of highly skilled union labor for construction projects, while the promotion of project labor agreements will ensure that contractors and clients have clear and concise expectations throughout the construction project while delivering work that is of the highest quality and maximum financial value.
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