fasterbuilder.com refers to the attempts of various groups within the industry to obtain project labor agreements favorable to their side. The major area affected by this process is the rate of pay, number and type of hours of work, penalty clauses and other factors. Before negotiations take place, there are standard operating procedures to adhere which include binding arbitration, shared decision making, and other formalities. There should be the effective and efficient liaison between the employees and management during the entire tenure of the project. This process can result in improvements in efficiency and quality.
There is a decline in competitiveness due to a lack of licensing and certification. There is an increase in competition amongst construction companies due to the rise in the number of construction projects. In addition to this, the trend of competition is increasing because of growth in the infrastructure sector, where construction companies compete with others for contracts and other works related to infrastructure projects.
There is a reduction in quality as a result of a lack of industrial relations. The employees working in the construction activity have no involvement in the decision-making process. They are paid according to the production output. Even if they have suggestions regarding changes or improvement, they are not given any chance to put forward their views. This results in a wastage of time and money.
There are two types of labor agreements one is a general obligation contract, and the other is a collective bargaining agreement. General obligation GOC is generally implemented during the initial phase of construction, while the CBA is introduced only when the project becomes a commercial business. Both agreements ensure the employment of all the workers engaged in the project. However, GOC provides workers the right to demand a higher wage and better working conditions. The CBA guarantees the rights of the workers to receive higher payment for their efforts and also encourages the contractors to offer better living conditions to them. The projects run smoothly with both the employers and workers agreeing on all aspects of the work.