OAHU, Hawaii -- Oahu's $5.5 billion rail transit project is another step closer to its groundbreaking.

The city Tuesday signed formal agreement to begin construction on the first six miles of the project and the mayor announced 12 of private sector labor unions have signed an agreement to prevent strikes and job disruptions during construction of the 20-mile rail system.

Kiewit Pacific and the city signed for construction for the $483 million first phase of the rail project from East Kapolei to near Leeward Community College.

In addition, leaders of 12 major private sector labor unions signed what's called a "risk management agreement" to guarantee no work slowdowns, strikes or stoppages of the rail project.

"My basic purpose in doing this is I want to put local labor to work. I have seen too many projects in our community where they import labor from the outside and that is what this does here," said Honolulu Mayor Mufi Hannemann.

As per the agreement, if there should be any work disruptions, the city can seek damages of up to $125,000 a day and terminate rogue unions.

"The main thing that we are saying today is we have a firm commitment from our labor construction unions to get this project done," said Hannemann.

"Now that the stabilization agreement has been signed, our members, who are 45 percent unemployed, are looking forward to building a quality project everyone in state can be proud of," said Ronald Taketa, with Hawaii Carpenters Local 745.

The city said take advantage of current favorable construction rates, its opening bidding Wednesday on the second phase of the rail route -- about four miles from Pearl Highlands to Aloha Stadium.

The city is still hoping to break ground in January, but first it needs a sign off on the environmental impact statement and federal and state approvals.