TRENTON, NJ — Led by the Associated Builders and Contractors of New Jersey and the African American Chamber of Commerce New Jersey (AACCNJ), a broad coalition of contractors, minority- and women-owned businesses, and community leaders is calling on New Jersey lawmakers to oppose legislation that would dramatically expand the use of costly Project Labor Agreements (PLAs) on local public projects.  The legislation, A-5967/S-4864, disproportionately harms minority and women-owned businesses and will increase the cost of taxpayer-funded public works projects.

Under current law, PLAs are reserved for large-scale, complex public projects where they may be justified. But A-5967/S-4864 would allow PLAs on virtually any local project, regardless of size or complexity, covering everything from modest school repairs to routine municipal building renovations. Critics warn this would make public work less competitive, less inclusive, and less accessible to New Jersey’s diverse small-business community.

Conducted by the Murphy Administration, New Jersey’s 2024 Disparity Study makes clear that minority- and women-owned construction firms already face severe underrepresentation in public contracting:

  • Black-owned firms make up 9% of the market but receive just 0.014% of contract dollars
  • Hispanic-owned firms represent 11.6% of the market but receive 1.5%
  • Asian-owned firms represent 6.4% of the market but receive 2.0%
  • 98% of minority-owned contractors are non-union, meaning they would face significant barriers under expanded PLA mandates

“When New Jersey’s own data shows that minority- and women-owned contractors are already being left behind, the absolute last thing the Legislature should do is expand policies that restrict opportunity even further,” said Samantha DeAlmeida, President of Associated Builders and Contractors New Jersey (ABC-NJ). “PLAs on small public projects would effectively shut out 98 percent of minority-owned firms. It’s a huge step backward for equity, diversity, and fair access to public work.”

African American Chamber of Commerce of New Jersey (AACNJ) President John Harmon echoed those concerns. “New Jersey leaders talk often about closing racial and economic disparities, yet this bill would deepen them. By limiting who can bid on public projects, A-5967/S-4864 would disproportionately harm Black-owned businesses and workers who deserve a fair chance to compete. Our state should be opening doors for women and minority-owned businesses. This bill is slamming the door in our face.”

DeAlmeida also warned that the legislation will drive up project costs, reduce competition, and burden small municipalities least equipped to absorb increased expenses. With fewer qualified bidders permitted to participate, taxpayers could face:

  • Higher construction costs;
  • Reduced project scope or delayed timelines;
  • Potential tax increases or cuts to essential services.

“Let’s call this bill out for what it is — a taxpayer-funded surcharge on public construction projects,” said DeAlmeida. “PLAs increase costs, limit competition, and deliver no measurable benefit for local communities. The only ones who benefit from PLAs are the politically-connected labor unions. Every single legislator who ran on a platform of making New Jersey more affordable should be against this bill, because it does the exact opposite.”

The proposal also contradicts the intent of New Jersey’s original 2002 PLA law, which limited PLAs to large, complex projects where such agreements could be justified, not routine maintenance or smaller-scale public projects.

The coalition is encouraging business owners, community organizations, and local leaders to contact their legislators and urge a “NO” vote on A-5967/S-4864 to protect fairness, competition, and economic opportunity across New Jersey’s construction sector.