Use of Project Labor Agreements for Federal Construction Projects
Headline: Federal Agencies Encouraged to Use Project Labor Agreements
What it does: Agencies may require contractors on federal projects costing $25 million or more to use project labor agreements when they advance efficiency and comply with law.
- May require contractors to negotiate or join project-specific labor agreements on large projects.
- Adds contract clauses to bind all contractors and subcontractors to agreement terms.
- Requires rule changes and a government report to guide wider use of such agreements.
Summary
This order encourages federal agencies to use project labor agreements on large construction projects. A project labor agreement is a pre-hire agreement that sets work terms for a specific project.
It defines large projects as those costing $25 million or more and says agencies may require these agreements when they promote economy, efficiency, labor stability, and legal compliance. Use is optional and contractors are not required to join any particular labor group.
The Federal Acquisition Regulatory Council must amend procurement rules within 120 days, and the budget office must report recommendations within 180 days.
Ask about this order
Ask questions about this executive order and its implications.
What agencies are affected by this order?
How does this order change existing policy?
What are the practical implications of this order?