@panzade,
No. It assures that labor will be paid for at the local prevailing
union wage. It's intent is to force your employers into accepting union contracts because the labor cost is the same, and paperwork is much simpler.
I mentioned a corrosponding NM law relating to companies working under state contracts, as opposed to federal. It requires payment at union scale, and I am reasonably certain the federal Davis-Bacon Act is the same in that respect. In fact, I believe NM just paraphrased the federal law. Notice that I make a distinction between what I know and what I am pretty certain of.
The net effect is to make union labor competive with the free mark labor supply. Incidentally, it makes almost every federal and New Mexico construction project cost more.