PLAs are not a sound practice for anyone starting a building project. Supporters of PLAs, including President Biden, ignore the basic economics. PLAs reduce the number of bidders, and as a result, the prices increase. This graphic looks at three examples of projects first bid with a PLA and then rebid when the PLA was removed.
Removing the PLA increased the number of bidders and decreased the project cost. It really is that simple. Developers and project owners should let the free market work.
