Gov. Neil Abercrombie signed an administrative directive Tuesday that will enable state departments to establish proj­ect labor agreements on state construction proj­ects.

Project labor agreements set the basic terms and conditions, such as wages and benefits or whether strikes and lockouts would be allowed, before construction proj­ects are open for bidding. Construction firms interested in the proj­ects would have to meet the terms and conditions to be eligible for the contracts.

The agreements can provide structure and stability to large-scale construction proj­ects but have been criticized for potentially reducing competition and steering work to labor unions.

"We believe that our unemployment rate is going to go down, and go down significantly because people are going to be going to work," said Abercrombie, who as a congressman was an advocate for proj­ect labor agreements on military housing construction in Hawaii.

Reginald Castanares Jr., president of the Hawaii Building and Construction Trades Council, a labor coalition, said building activity has been slow for construction unions. He hopes state proj­ects will provide jobs.

Abercrombie identified five state construction proj­ects that could have proj­ect labor agreements: the $38 million University of Hawaii-Hilo College of Pharmacy, the $32.9 million renovation to the vacant Kama­malu Building downtown, the $225 million Maui jail in Puu­nene, the $11 million Ewa Ele­mentary School classroom building and the $213 million Hono­lulu Airport mauka concourse proj­ect.