Frederick Mason III, ABC

Pawtucket, RI It appears Rhode Island policymakers have significant room for improvement in creating a business environment where contractors can excel.  Our policymakers can help reduce the cost of public construction to taxpayers and make it easier for contractors to expand their operations and create more jobs in by adopting free enterprise-based policies such as banning anti-competitive and restrictive PLA and prevailing-wage mandates and supporting right-to-work and workforce development programs, as many have in other areas of the country.

Rhode Island has ranked 47^th for contractors to do business, according to a scorecard launched this month by Associated Builders and Contractors (ABC). “Building America: The Merit Shop Scorecard” reviews and grades state-specific information significant to the success of the commercial and industrial construction industry. The scorecard website, meritshopscorecard.org, identifies states, such as Rhode Island, where strategic improvements need to be made to create an environment where merit-shop contractors are well positioned to succeed and states that have created contractor-friendly business environments.

The Merit Shop Scorecard grades states on their policies on project labor agreement (PLA) and prevailing wage mandates, right-to-work status as well as their construction job growth rate, commitment to developing a well-trained workforce, level of flexibility in career and technical education curricula and use of public-private partnerships (P3s).

The merit shop philosophy is the belief that people and companies succeed based on free enterprise principles within the free market system, which is characterized by open and fair competition and diverse participants. Those who adhere to the philosophy believe employees and employers have the right to determine wages and working conditions through either individual or collective bargaining, as they choose, within the boundaries of the law. They oppose violence, coercion, intimidation and the denial of the rights of employees and employers. Furthermore, they believe it is incumbent upon all branches of government to be responsible stewards of taxpayer dollars and that government should award contracts based solely on merit to the lowest responsible bidder, regardless of labor affiliation.

The Merit Shop Scorecard was developed with input from ABC chapters and industry stakeholders across the country. States were evaluated based on their policies and records on seven key issues:

• Project Labor Agreements (PLAs)

• Prevailing Wage

• Right to Work

• Public-Private Partnerships (P3s)

• Workforce Development

• Career and Technical Education

• Job Growth Rate

Criteria and definitions are available on meritshopscorecard.org. The scorecard will be updated with exclusive state construction unemployment rate estimates from noted D.C. economist Bernard Markstein, Ph.D. We’re hopeful this study focuses attention on the state’s chronic economic development weaknesses and the difficulties the large majority of contractors face in doing business in the Ocean State.

Frederick Mason III is the president of ABC Rhode Island.