March 4, 2014 The Honorable Andrew M.

Cuomo Governor of New York State Executive Chamber State Capitol Albany, NY 12224 RE: 2014-15 Executive Budget (A.8557-B/S.6357-B Part B) Dear Governor Cuomo: As Governor, you have demonstrated a strong commitment toward improving the states economy through lowering taxes and private sector job creation efforts. This is in part reflected by the Infrastructure Investment Act of 2011, when the state authorized design-build in certain applications. We write in support of the permanent extension and expansion of design-build in New York. Design-build is a proven method for completing public infrastructure projects more quickly and at a lower cost saving taxpayer money. The Design-Build Institute of America (DBIA) estimates that on average, design-build projects are completed 33 percent faster and can save up to six (6) percent on cost. Unfortunately, the 2014-15 Executive Budget includes language that, if enacted, will effectively halt the use of the design-build process in New York State by essentially mandating the use of Project Labor Agreements (PLAs) on every design-build project in the state. This provision will stifle the progress that New York State has made in infrastructure improvement and storm recovery efforts. Requiring the use of PLAs on design-build projects will negate all of the programs potential benefits, rendering the application of design-build useless. While almost every other state in the nation authorizes the use of design-build, we note that no other state mandates PLAs on design-build projects.

The importance of design-build project delivery is clear. At last weeks meeting of the New York Works Task Force, Department of Transportation Commissioner Joan McDonald highlighted the benefits of the design-build program including: Creating thousands of jobs statewide; Locking in project costs and avoiding cost overruns; Accelerating projects schedules and avoiding project delays; Increasing quality control/quality assurance; and Achieving project innovations that save New Yorkers time and money. Delivering projects faster saves taxpayers money, creates good paying, private sector construction jobs, and results in stronger communities with safer infrastructure. Including arbitrary and unnecessary labor requirements on the program will have the opposite effect. Our organizations strongly oppose mandating PLAs in conjunction with design-build projects, and urge this proposal to be removed before the 2014-15 state budget is finalized. We urge you to not only extend design-build authorization, but to also expand its use to other construction applications as well. Sincerely, Mike Elmendorf
Associated General Contractors

Dottie Gallagher-Cohen
Buffalo Niagara Partnership

Heather Briccetti
Business Council of NYS

Dr. Robert J. Reidy, Jr

Council of School Superintendents

Andrew Claus
DBIA Liberty Northeast Region

Lou Santoni
Greater Binghamton Chamber of Commerce

Mike Durant
NFIB

Peter Baynes
NYCOM

Brian McMahon
NYS EDC

Tim Kremer
NYS School Boards Assoc.

Sandra Parker
Rochester Business Alliance

Jeff Albert
Assoc. Builders & Contractors

Brian Sampson
Unshackle Upstate

Cc:

Howard Glaser, Director of State Operations Larry Schwartz, Secretary to the Governor Karen Rae, Deputy Secretary to the Governor Alphonso David, Deputy Secretary to the Governor