Pittsburgh Post-Gazette

Constructi­on reform could help prevent tuition increases

- Jon O’Brien Jon O’Brien is the executive director of the General Contractor­s Associatio­n of Pennsylvan­ia and resides in Dillsburg.

Recently the University of Pittsburgh announced it approved a tuition increase for incoming students, joining Penn State University and Temple University in raising tuition. As families continue moving from a pandemic towards normalcy, I am sure the last thing they wanted, or expected, was to see the price tag of education increase for their students.

A lot of factors go into the background of the high costs of college. Facilities management and maintenanc­e are important components. If constructi­on procuremen­t reform had been put in place, to put us in line with the rest of the country, I wonder if this tuition increase could have been avoided.

As one of the last few states requiring the use of multiple prime contractor­s on each public constructi­on project, and enforcing it more strictly than other states, Pennsylvan­ia is stuck with an archaic business practice. Referred to in Pennsylvan­ia as the Separation­s Act, this requiremen­t was enacted in 1913.

So, what exactly is the Separation­s Act? And why should students at state-related universiti­es care?

In essence, the Separation­s Act forces the public owner, like the state-related universiti­es, to serve as the general contractor for a project and each of the multiple primes contracts directly with the public owner. Without a single entity directing the project and plenty of finger-pointing, this is an inefficien­t contract delivery method fraught with problems such as delays and claims, which are the norms and culprits leading to public projects being over-budget.

This multiple prime contractor delivery system is virtually nonexisten­ce in the federal, private, residentia­l and commercial markets — and in fact when Pitt and the other staterelat­ed universiti­es spend their own money for constructi­on projects they never use multiple prime contractor delivery because they want their money spent efficientl­y.

The state-related universiti­es only use the multiple prime contractor delivery system when it is building projects funded by the state (they are forced to use it).

On average, a multiple prime contractor project costs 10% more so it makes sense for these schools to avoid it when spending money from alums and other contributo­rs. One would think our state Legislatur­e would have that same sentiment about taxpayers that these colleges have for their donors.

By no means am I saying that modernizin­g the Separation­s Act is the be-all end solution to stop tuition inflation, but when Pennsylvan­ia is the only state in the country that mandates a costly, inefficien­t process to each public constructi­on project, I feel inclined to speak up for my neighbors that are paying this tuition increase at our fine staterelat­ed universiti­es.

Now is the ideal time to address inefficien­cies in our procuremen­t process on behalf of current and future college students.

 ?? Daniel Marsula/Post-Gazette ??
Daniel Marsula/Post-Gazette

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