Methuen Construction Co. v. City of Boston

8 Mass. L. Rptr. 325
CourtMassachusetts Superior Court
DecidedMarch 15, 1998
DocketNo. 981267
StatusPublished

This text of 8 Mass. L. Rptr. 325 (Methuen Construction Co. v. City of Boston) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Methuen Construction Co. v. City of Boston, 8 Mass. L. Rptr. 325 (Mass. Ct. App. 1998).

Opinion

Hinkle, J.

The plaintiff contractors seek to enjoin defendant City of Boston from requiring bidders to enter into a bid specification called a Project Labor Agreement (“PLA”)2 as a condition for work on renovations and additions to East Boston High School (“the Project”).

Plaintiffs allege that they are being penalized for their non-union status and effectively prevented from submitting a bid or receiving the award of a contract for work on the Project as the result of the restrictions imposed by the Project Labor Agreement. The plaintiffs also allege that the City has failed to comply with procedures set forth in its own Executive Order which allows for PLAs only after “thorough investigation and analysis” by a Project Labor Committee. The defendant contends that its bid specifications are within its authority under the applicable Massachusetts public bidding statute, G.L.c. 149, §§44A-J, 44M.

For the reasons set forth below, after hearings held on March 23, March 25, and March 30, 1998, review of the complaint, answer, affidavits and stipulated facts, the plaintiffs’ application for a preliminary injunction is ALLOWED.

FINDINGS OF FACT3

1.The plaintiffs are all Massachusetts corporations. Methuen Construction Company is primarily engaged in the general contracting business. The other plaintiffs are primarily engaged in the electrical contracting business. Each plaintiff is experienced in public building construction and is qualified to work on the Project. Each plaintiff would be required to provide a bid deposit, typically in the form of a bid bond, in the amount of 5% of its bid as a condition of bidding. Therefore, each claims it would risk its bid bond if it bid for work on the Project with no intention of signing the PLA. Each plaintiff has performed numerous public construction projects not governed by PLAs, and each has demonstrated its ability to provide employees who can work in harmony with all other employees, including those provided by union contractors.

2. On December 8, 1997, the City initially invited bids for work in connection with the Project. On January 8, 1998 bidders were notified that the deadline for submission of filed sub-bids was extended from January 14, 1998 to January 26, 1998, and the deadline for submission of general bids was extended from February 4, 1998 to February 11, 1998. On January 13, 1998, bidders were notified that submission of filed sub-bids was extended from January 26, 1998 to January 29, 1998.

3. On January 26, 1998, the City’s PLA Committee ratified the use of the PLA on the Project. On that same day bidders were notified that the Project had been cancelled, and that the Project would be redesigned and bids solicited by public advertisement at a later date.

4. On February 23, 1998, the City invited bids for the Project for a second time. On March 12, 1998, sub-bids for the Project were opened. On March 24, 1998, bidders were notified that the deadline for submission of general bids was extended from March 2, 1998 to April 1, 1998.

5. At the time of this Memorandum of Decision, Boston has not awarded any contracts for the Project.

6. The Project cost is expected to be $24,632,000, which makes it the largest school construction project in the City’s history. The Project will include a new gymnasium addition for the East Boston High School, site improvement, and extensive renovation of the existing building, including seismic upgrades, a new elevator and a new roof. Eighteen categories of bids are involved in the Project.

7. As required by G.L.c. 149, §44B, the City prepared separate bid documents, primarily plans and specifications for the Project. The bid documents include an Executive Order for Project Labor Agreements on City Construction Projects (the “Executive Order”) dated September 1, 1997 and issued by Mayor Thomas M. Menino. The bid documents also include a form of a Project Labor Agreement negotiated over several months between the City and various unions and executed by the Signatory Unions on or about September 1, 1997.

8. The Executive Order provides in pertinent part:

The decision to require a Project Labor Agreement for a major public construction project will be made by the City on a project-by-project basis where the City has determined based on thorough investigation and analysis that the use of a Project Labor Agreement will benefit and enhance the interests of the City. Factors to be considered may include, without limitation, cost, efficiency, quality and/or safety, the principles of competitive bidding, expanded opportunities for minorities, females and Boston residents and other City policies and laws. The City’s decision will be made in accordance with [327]*327City policies, legal requirements and any or all of the following standards:
a. A Project Labor Agreement will not be appropriate unless the number and mix of different crafts, trades, contractors, and subcontractors render the project of sufficient complexity to warrant a project labor agreement;
b. A Project Labor Agreement will only be appropriate for projects historically recognized as construction work;
c. A Project Labor Agreement will only be appropriate where the nature of the project, including without limitation such factors as location, environmental impact, relevant court orders or other legal requirements, duration and deadlines for completion, is such to warrant a project labor agreement.

9. The Executive Order calls for the creation of a special committee called the “Project Labor Committee” which is responsible for, among other things, investigation and recommendations concerning the propriety of PLAs on City projects. The PLA Committee met once, on January 26, 1998, to “ratify” the requirement of the PLA in the Project bid specification. The treatment of the Project at that meeting was perfunctory. The Committee conducted no analysis or evaluation of the reasons for using a PLA on the Project. Before the meeting, PLA Committee members received a Construction Project Information Sheet (“the Information Sheet”) regarding renovation of the East Boston High School. Committee members had no other material information about the applicability of the PLA for this Project before their vote.

10. The PLA involved in this case requires all contractors and subcontractors on the Project to agree to be bound by the collective bargaining agreements of the Signatory Unions,4 as well as other union rules. Among the provisions of the PLA are the following:

(a) All contractors are required to sign and become bound by the terms of the PLA as a condition of award of work on the Project. Article 11(b).
(b) The PLA incorporates by reference the local collective bargaining agreements of the Signatory Unions. Article II, Section 3.
(c) Contractors who sign the PLA must recognize the union as the sole and exclusive bargaining representative of all craft employees on the Project. Article III, Section 1.
(d) All workers, except one foreman, must be referred to each Contractor by the local union. Article III Section 2.
(e) All employees on the Project must join the union. Article III, Section 4.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Phipps Products Corp. v. Massachusetts Bay Transportation Authority
443 N.E.2d 115 (Massachusetts Supreme Judicial Court, 1982)
Interstate Engineering Corp. v. City of Fitchburg
329 N.E.2d 128 (Massachusetts Supreme Judicial Court, 1975)
Packaging Industries Group, Inc. v. Cheney
405 N.E.2d 106 (Massachusetts Supreme Judicial Court, 1980)
Commonwealth v. Mass. Crinc
466 N.E.2d 792 (Massachusetts Supreme Judicial Court, 1984)
Quincy Ornamental Iron Works, Inc. v. Findlen
228 N.E.2d 453 (Massachusetts Supreme Judicial Court, 1967)
Rudolph v. City Manager of Cambridge
167 N.E.2d 151 (Massachusetts Supreme Judicial Court, 1960)
Modern Continental Construction Co. v. Massachusetts Port Authority
343 N.E.2d 362 (Massachusetts Supreme Judicial Court, 1976)
New York State Chapter, Inc. v. New York State Thruway Authority
666 N.E.2d 185 (New York Court of Appeals, 1996)
Empire State Chapter of Associated Builders & Contractors v. City of Oswego
239 A.D.2d 875 (Appellate Division of the Supreme Court of New York, 1997)
Albany Specialties, Inc. v. County of Orange
240 A.D.2d 739 (Appellate Division of the Supreme Court of New York, 1997)
Slocum v. City of Medford
18 N.E.2d 1013 (Massachusetts Supreme Judicial Court, 1939)
Doric Building Associates v. Department of Labor & Industries
540 N.E.2d 1348 (Massachusetts Appeals Court, 1989)
Rose v. Board of Selectmen
627 N.E.2d 478 (Massachusetts Appeals Court, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
8 Mass. L. Rptr. 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/methuen-construction-co-v-city-of-boston-masssuperct-1998.