NYC commercial construction operates under a mix of union (organized labor under collective bargaining agreements) and open-shop (non-union) trades, and which one applies depends mostly on the building. Many Class A commercial buildings in Manhattan are union buildings — meaning the landlord requires union labor on all construction inside the building. Other buildings, including a meaningful portion of Class B and Class C inventory, allow open-shop labor.
The practical impact: union labor typically costs more on an hourly basis but comes with structured work rules, safety protocols, and reliable trade-specific expertise. Open-shop labor is often less expensive and more flexible on schedule, but the GC has to vet sub quality more carefully because the standardization isn’t enforced by the trade associations.
For a commercial tenant, the building’s labor posture is often non-negotiable — it’s set by the landlord, not the tenant. Darby manages projects under both union and open-shop conditions, and the budget, schedule, and subcontractor selection are tailored to whichever the building requires.
