The intersection of 16th and I Streets in Washington, D.C., couldn’t be a better icon of the complex and ironic state of construction labor relations these days. On one side of the street, the gold symbol of the Laborers’ International Union of North America shines brightly. On the other, big black letters announce the headquarters of the AFL-CIO. Once inextricably linked, these two organizations now are estranged.

A few blocks away are symbols of other entities tied to the future of the construction craft work force—the White House, the “K Street” big business lobby corridor and the Washington office of Bechtel Corp. The San Francisco firm, which works both union and nonunion, is one of many contractors watching the industry’s changing labor dynamics. And “beyond the Beltway,” local construction participants cope with their own labor and market pressures and are forging bonds that may or may not reflect the view from 16th Street.