Case Study: Subcontractor Labor Disputes Cause Pile Driving Delay in Louisiana (2018)

Project Overview
• Name: New Orleans Flood Protection System
• Location: New Orleans, Louisiana
• Year: 2018
• Project Size: $430 million
• Scope: Construction of flood barriers including deep pile foundations
• Lead Agencies/Contractors: Louisiana DOT /

Category of the Issue, Problem, or Challenge
• Subcontractor Management
• Labor Relations & Scheduling

Summary of the Issue, Problem, or Challenge
Labor disputes within the pile driving subcontractor’s workforce led to work stoppages and a 5-week delay in foundation installation.

Root Cause Analysis

• Poor subcontractor labor relations and communication.
• Unaddressed worker grievances and union conflicts.
• Inadequate contingency planning for labor unrest.
• Limited prime contractor involvement in subcontractor labor management.

Impacts Due to the Issue, Problem, or Challenge

• Schedule disruption impacting subsequent construction phases.
• Cost overruns due to extended equipment rentals and labor demobilization/remobilization.
• Negative publicity and strained stakeholder relationships.

Corrective Actions Taken

1. Engaged labor relations specialists to mediate disputes.
2. Improved subcontractor workforce communication and grievance processes.
3. Developed labor contingency and escalation plans.
4. Enhanced prime contractor oversight on subcontractor labor issues.

Lessons Learned

• Proactive labor relations management prevents costly delays.
• Clear communication channels between workers and management reduce conflicts.
• Prime contractor involvement can mitigate subcontractor labor risks.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Are subcontractor labor relations proactively managed?
• Are grievance procedures clear and effective?
• Does the prime contractor monitor labor issues regularly?