Category: Management Best Practices

By Jon O’Brien

Open any Pennsylvania newspaper over this past summer and you’ll read about a serious funding crisis in public transportation. SEPTA warns of service cuts, riders worry about fare increases, and regional transit systems across the Commonwealth struggle to keep buses and trains running. Without new investment, the mobility lifeline for hundreds of thousands of Pennsylvanians is at risk.

Yet while these urgent debates unfold, our state continues to waste millions of dollars every year on outdated construction mandates. At the heart of this waste is the Separations Act, a 1913 law unique to Pennsylvania that requires public construction projects to use multiple prime contractors: one for general construction, another for electrical, another for plumbing, and another for HVAC.

On the surface, this might sound like accountability. In practice, it creates duplication, inefficiency, finger-pointing, and costly delays. With four or more contractors working independently, coordination becomes a nightmare. Disputes often spill into litigation. Schools, courthouses, and state facilities take longer and cost more than they should — and taxpayers pick up the tab.

Meanwhile, every other state in the country, along with the federal government, allows public agencies to use modern, cost-effective delivery systems such as design-build or construction manager at risk. These systems give owners flexibility, streamline accountability, and have a proven track record of saving money while delivering quality projects on time. Pennsylvania alone forces public entities — from small school districts to large universities — into a fragmented system that inflates bids and extends timelines.

The results are obvious:

• Higher costs: taxpayers pay more for every classroom, fire station, or state office building.
• Slower projects: delays compound as multiple contractors clash over responsibilities.
• Lost opportunities: dollars wasted on inefficiency could otherwise support public priorities.

Those lost opportunities matter. Right now, they could mean the difference between SEPTA keeping buses on the road or cutting vital routes. They could mean whether Pittsburgh Regional Transit can maintain service or be forced to shrink. They could even mean whether rural transit systems continue to connect seniors and workers to healthcare and jobs.

If Pennsylvania leaders are serious about solving our infrastructure and transit funding gaps, then modernizing the Separations Act must be part of the solution. We cannot keep protecting a broken law from 1913 while buses are being cut, riders are stranded, and taxpayers are stretched to the limit.

Opponents of reform argue the Separations Act prevents monopolies and keeps contractors honest. But in truth, the rest of the nation has moved on to modern procurement systems that are just as competitive and far more efficient. Private industry relies on them. States across the political spectrum rely on them. Pennsylvania stands alone in clinging to an antiquated rule that no longer works.

Public construction should serve the public — not outdated mandates or entrenched special interests. By modernizing the Separations Act, Pennsylvania can save millions, deliver projects faster, and free up scarce resources for the infrastructure that actually supports economic growth and quality of life.

Taxpayers deserve a government that spends smarter. Transit riders deserve reliable service. Communities deserve modern schools and facilities built on time and on budget. Reforming the Separations Act is a commonsense step toward all three.

It’s time to put Pennsylvania’s construction laws in the 21st century and reinvest the savings in keeping Pennsylvanians moving.

Jon O’Brien is Executive Director of the Keystone Contractors Association, a commercial construction trade association that represents major contributors to employment and economic growth in Pennsylvania.