State decision makers
Principle 5
Grow a Skilled Workforce and Contractor Base
Key Actions
Key Action 1
Integrate workforce goals in State funding and SRF plans
Support the creation of a workforce pipeline for lead service line replacement. A strong, statewide workforce pipeline is essential to meeting the demand for lead pipe replacement while maximizing the health and economic benefits for local communities. By investing in workforce development programs—including training, certification, and apprenticeship opportunities—states can ensure there are enough qualified workers to complete projects efficiently and affordably. At the same time, these efforts create good-paying jobs, foster economic mobility, and help ensure that the benefits of infrastructure investments are felt in the communities most impacted by lead exposure.
Employ project labor agreements to establish workforce standards
Employ project labor agreements (PLAs) to establish workforce standards for wages, hours, working conditions, and dispute resolution methods. These agreements control the terms and conditions of employment of workers on specific construction projects, ensuring fair treatment and efficiency. States and local governments can require PLAs in publicly funded projects to uphold high labor standards and keep projects on track. These agreements can also include pre-apprenticeship programs and local hiring requirements, creating career pathways in skilled trades and boosting economic opportunities for communities. States can also mandate participation in Class A Apprenticeship (CAA) programs that are registered with the federal or state government.
Require workforce development plans as part of SRF applications
Lead service line replacement (LSLR) projects can also create job opportunities. In addition to traditional engineering plans, applicants can be asked to outline strategies for hiring apprentices and underrepresented workers in the construction industry as a condition of receiving funding. Minnesota set a strong precedent in 2023 by mandating such workforce development plans for grant applicants seeking state funding for LSLR projects. The plan must include a description of how the applicant will maximize the use of registered apprentices and workers from populations under-represented in the construction industry in the LSLR projects. By adopting similar requirements, states can expand career pathways while advancing critical infrastructure improvements.
Prioritize applications with workforce plans
States can rank project applications or provide ranking points on state revolving fund (SRF) applications as a way of incentivizing workforce development, similarly to how project ranking points are often awarded to applicants that develop or update their asset management plan. States can assess each project in relation to the project’s expected impact on job creation or preservation and private investment.
Collect and report workforce data to monitor progress
Collect and report workforce data to monitor progress of state revolving fund (SRF) funded lead pipe replacement projects. States can require recipients of SRF funds to report workforce data, helping track the success of lead pipe replacement projects. Key metrics to measure workforce outcomes can include the employment rates in underserved areas, retention rates, and adherence to prevailing wages. By collecting and analyzing this data, states can ensure that SRF-funded projects are creating meaningful employment opportunities and supporting local communities.
Oversight and compliance monitoring for federal workforce requirements
Provide oversight to ensure the workforce requirements that promote experienced, qualified contractors and highly skilled craft labor are enforced. The SRF funding requirements already include requirements regarding the kinds of workers that can be hired, their wages and working conditions, and the source of supplies used on SRF projects. These include, for example, the requirement to comply with prevailing wage standards in the Davis-Bacon Act and to procure supplies compliant with the Build America, Buy America (BABA) Act. By monitoring the work completed by contractors and their workers, states can ensure a high quality of labor and a benefit to the local workforce.
Toolbox
Key Action 2
Provide guidance on community-focused workforce strategies
Center communities in lead service line replacement (LSLR) workforce development through inclusive policies and partnerships. To ensure that LSLR efforts deliver lasting value to communities, states should promote workforce policies that reflect local needs and priorities. Encouraging the participation of community-based organizations (CBOs) in LSLR programs helps build trust, improve outreach, and align job opportunities with the interests of residents. States can support this by promoting the use of community benefit agreements, establishing local advisory groups, and fostering partnerships that empower CBOs to advocate for equitable hiring, training, and engagement practices. These strategies help ensure LSLR work not only protects public health, but also strengthens local economies and builds long-term community capacity.
Encourage community benefits agreements for SRF-funded projects
A community benefits agreement (CBA) is a contract negotiated between a developer and the communities that commits the developer to work with local community-based organizations (CBOs) and workforce development agencies to create opportunities for local workers. The CBA outlines community benefit outcomes expected and can commit developers to provide living wage employment opportunities to local residents and training programs to prepare them for the type of work needed to complete the project.
Encourage the formation of workforce development advisory groups
Encourage the formation of workforce development advisory groups within lead service line replacement (LSLR) programs. Community-based organizations (CBOs), nonprofits, and labor unions play a vital role in strengthening workforce development policies and programs. A dedicated advisory group can facilitate ongoing dialogue between water utilities and these stakeholders, fostering collaboration and identifying opportunities to expand job training and hiring efforts.
Toolbox
Key Action 3
Launch apprenticeship and pre-apprenticeship programs
Apprenticeship programs to employ and create long-term career opportunities for those who are most impacted by lead in drinking water. Such programs can help meet the demand for workers to conduct lead service line replacements (LSLRs) while creating jobs for local residents.
Establish guidelines for apprenticeship programs
Establish guidelines for apprenticeship programs as part of SRF-funded projects above a specific scale. These apprenticeship requirements can ensure that large projects play a role in building career ladders for new workers without prior experience in the field, which is often the case for local residents from under-resourced communities. These requirements can also stipulate that projects receiving grant program funds must pay workers prevailing wages. States can play a role in highlighting existing apprenticeship programs or supporting the organization of apprenticeship programs where applicable.
Stipulate responsible contractor policies
Stipulate Responsible Contractor Policies (RCPs) that require experience, qualified contractors, and skilled craft labor. RCPs can require contractors and subcontractors to affirmatively certify that they participate in bona fide apprenticeship training programs for each craft or trade they employ. This can be accomplished by mandating participation in Class A Apprenticeship (CAA) programs. These are programs registered with the federal or state government and have a track record for graduating apprentices for at least 3 years. By enforcing these standards, states can promote high-quality work, strengthen the workforce, and support long-term career development in the trades.
Toolbox
Key Action 4
Eliminate Barriers to Innovative Contracting
Outdated or rigid procurement rules can limit communities’ ability to adopt contracting models that better fit their needs, especially for complex or large-scale efforts like lead service line replacement. By removing statutory and administrative barriers, states can empower local governments and utilities to pursue more flexible, efficient, and cost-effective contracting strategies—such as design-build, progressive design-build, or job order contracting—that accelerate delivery while ensuring accountability.
Remove statutory and administrative barriers to innovative contracting
Remove barriers in state statute, administrative code, or program policies that impede or limit the adoption of innovative contracting approaches such as:
Community-Based Public Private Partnerships (CBP3s)
Community-Based Public Private Partnerships (CBP3s) can be an effective model for increasing speed, cost-effectiveness, and equity through a de-risked delivery. Community-based private-public partnerships (CBP3s) are a collaborative model where government, private companies, and community-based organizations work together to meet public service needs. In a CBP3, the private partner would be responsible for financing, planning, design, construction, operation, maintenance and/or rehabilitation, and replacement of lead service line infrastructure. By pooling resources, expertise, and funding from both public and private sectors, CBP3s have the potential to increase the ability to leverage public funds while minimizing impacts to a municipality’s debt capacity. Utilities can consider whether a CBP3 approach would be an effective strategy by using the CBP3 calculator.
Pay-for-success contracting terms
Pay-for-success contracting terms incentivize contractors to deliver work on a faster schedule or at a lower cost per lead service line. Pay for success models allow plumbers and contractors to be paid a predictable and cost-effective rate for documented replacement of lead pipes, resulting in possible cost savings.
Monitor contractor and consultant performance on SRF projects
State SRF administrators have the responsibility for reviewing contracts between the utility and its contractors for projects funded through the state revolving funds (SRF). This provides state administrators with an opportunity to evaluate the performance of these contracts on an annual basis to assess the replacement cost per line across projects within the state. Because state administrators have access to a larger number of contracts, it also provides the opportunity to identify programs or projects in the state that are particularly efficient and share best practices and lessons learned with others.
Recommend contracting terms for faster and more cost-efficient LSLR
Recommend contracting terms that promote efficiency, accelerate replacement, and reduce costs. States can support faster and more cost-effective lead service line replacement (LSLR) by encouraging utilities to adopt contracting best practices. As highlighted in the Water Utilities Roadmap (see Water Utilities Roadmap, Principle 3, Key Action 1), thoughtful contract language can significantly streamline project delivery, reduce administrative burdens, and lower per-pipe replacement costs. States should recommend that utilities include contract terms that:
Ramp up contractor capacity
Ramp up contractor capacity by offering smaller bids to small contractors who may need to gain experience.
Increase bid package sizes
Increase bid package sizes to lower per-pipe replacement costs through economies of scale.
Incentivize contractors
Incentivize contractors to finalize projects more efficiently by incorporating “pay for success” language.
Pre-procurement of materials
Pre-procurement of materials through state cooperative purchasing agreements can reduce costs for construction materials.
Leverage cooperative purchasing agreements
Leverage cooperative purchasing agreements to pre-procure materials and reduce construction costs.
