Contractor Las Vegas

McCormick Place private contractors gain more clout over prices

(Crain's) — Trade associations and exhibitors likely will pay more for electrical services under agreements that keep McCormick Place electricians on the job but allow two private contractors to mark up the cost of the electricians' work, Crain's has learned.

The agreements appear to flout state legislation passed last year that requires McCormick Place to provide electrical labor at cost but opened the door to competition from the contractors, Las Vegas-based Global Experience Specialists and Dallas-based Freeman. The law also allows trade show exhibitors to choose the lower-cost McCormick Place option over potentially more expensive electrical services offered by the contractors.

Under the new arrangement, McCormick Place electricians will continue to work at cost, but their services will be billed through the general contractors, which are free to mark up the price of labor and materials. Exhibitors no longer will be able to choose among competing electrical providers.

In an agreement with Local 134 of the International Brotherhood of Electrical Workers, the two contractors committed to using the McCormick Place electricians. A separate agreement with McCormick Place allows the contractors to broker those services to the trade show associations and their exhibitors.

“It's a good thing for our members, because it saves their jobs,” said Tim Foley, business manager and financial secretary for Local 134. “And it's also good for the exhibitors, because they'll be using electricians who have the expertise and the day-to-day knowledge of how McCormick Place works.”

Mr. Foley emphasized that the McCormick Place electricians will earn their regular hourly rates, but he acknowledged that the contractors are likely to mark up those charges.

In previous interviews, officials from Freeman and GES told Crain's they intended to make a profit from the electrical services but declined to specify how much they would raise prices or when. GES did not return phone calls and emails seeking comment on the deal.

In a written statement, Freeman Senior Vice-president Doug Van Ort said: “As a company, Freeman strives to keep costs down for our customers. By allowing us to work with the unions to provide electrical services at a fair cost along with superior customer service, both the unions and our customers will benefit.”

McCormick Place officials would not comment on the deal.

Court sends union-contractor fight back to ... - US News Las Vegas

In a 2-1 decision Friday, the Nevada Supreme Court ordered Clark County District Judge Jerry Wiese to consider additional factors in determining whether union workers must be used in the rehabilitation of the Clark County Detention Center north tower.

The court said Wiese failed to review such things as the Clark County labor market and economic conditions when he ruled in favor of the Southern Nevada Building & Construction Trades Council.

Clark County required the winning contractor to enter into a project labor agreement to hire union workers and pay union wages and benefits.

The Associated Builders & Contractors of Southern Nevada sued to invalidate that requirement.

The court said the additional factors must be considered to determine if a project labor agreement “at this time serves the taxpayers’ interest.”

Justices Mark Gibbons and James Hardesty said there is no record of what was considered in the decision by Wiese to uphold the agreement that favored the unions.

The justices said Clark County and Wiese “must make findings, supported by evidence in the record that the Project Labor Agreement will promote economic benefit to the taxpayers.”

Justice Michael Cherry supported the decision of Judge Wiese. “I respectfully dissent from the majority and would let the public works project begin with all deliberate speed,” he said.

The contractors in their suit said there was a lack of evidence presented in the District Court that the union requirement would save taxpayer money.

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