Use of Project Labor Agreements for Federal Construction Projects
Agencies Require Project Labor Agreements for Large Federal Construction
What it does
Agencies must require contractors on federal projects costing $35 million or more to negotiate or join project labor agreements, subject to specified exceptions.
Real-world impact
- May require contractors and subcontractors to be bound to project labor terms.
- Could reduce eligible bidders if market analysis shows fewer potential contractors.
- Agencies must publish PLA use data online and report quarterly to OMB.
Topics
Summary
This order directs federal agencies to use project labor agreements for large-scale construction projects costing $35 million or more. A project labor agreement is a pre-hire contract that sets work terms for a specific construction project.
Agencies must require contractors and subcontractors to negotiate or sign these agreements, with limited exceptions and oversight. The order also requires public reporting, quarterly reports to OMB, training for contracting officers, and a rulemaking process to implement the policy.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”