Executive Order on Use of Project Labor Agreements For Federal Construction Projects

On February 4th, 2022, President Biden signed an Executive Order requiring project labor agreements on large scale federal construction projects. Large-scale projects are defined as a “federal construction project within the United States for which the total estimated cost is $35 million or more.” The Order excludes projects funded by grants to non-federal agencies.

The Order is focused on strengthening Union jobs in construction, expanding the federal government’s use of PLAs and ‘will improve timeliness, lower costs and increase quality in federal construction’.

The Order, which will go into effect immediately, states that “Contractors who offer lower wages or hire less qualified workers will need to raise their standards to compete with other high-wage, high-quality companies”.


Click here to view the Executive Order on Use of PLAs for Federal Construction Projects.


Section 4 of the Executive Order requires that any project labor agreement reached pursuant to this Executive order shall:

(a)   bind all contractors and subcontractors on the construction project ;

(b)   allow all contractors and subcontractors on the construction project to compete for

contracts whether or not they are otherwise parties to collective bargaining agreements;

(c)    contain guarantees against strikes, lockouts and similar job disruptions;

(d)    set forth effective, prompt and mutually binding procedures for resolving labor disputes

arising during the term of the PLA;

(e)    provide mechanisms for labor-management cooperation on matters of mutual concern  such as  productivity,

quality of work, safety, and health;  and

(f)     fully conform to all statutes, regulations, Executive Orders, and Presidential Memoranda.


Section 5 lists Exceptions to requiring a PLA on a project including factors such as:

  • The project is of short duration and lacks operational complexity;
  • The project will involve only one craft or trade;
  • The project will involve specialized construction work that is available from only a limited number of contractors or subcontractors;
  • The project is of such an “unusual and compelling urgency that a PLA would be impracticable;
  • Requiring a PLA would substantially reduce the number of potential bidders so as to frustrate full and open competition;
  • Requiring a PLA would be inconsistent with other statutes, regulations, Executive Orders or Presidential  Memoranda.


Within 120 days of the effective date of this Order, regulations implementing the provisions of this Order will be proposed. The OMB shall issue guidance to implement the requirements of Section 5 (Exceptions) and Section 6 (Agency Reporting).


Click here to view the FACT SHEET issued by the White House regarding the Executive Order to Boost Quality of Federal Construction Projects.


This content was provided by WPCCA professional counsel and is for general informational purposes only. Readers should contact their own professional counsel for company specific matters in the relevant jurisdiction.

Recent Posts

Brunch Break

Join us in an opportunity to get to know your fellow WPCCA members for brunch at the beautiful Old Ranch Country Club in Seal Beach! This event will feature a presentation by the Apprenticeship Director of Training, David Burtle, who…

March 28, 2023

WPCCA 2023 Employment Law Updates Webinar

With a new year comes new employment laws. Join us for an overview of 2023 Employment Law Updates. Our presenter, Shauna Correia, Esq., will highlight recent developments and changes to employment law pertinent to subcontractors in SoCal.   Date: Wednesday, April…

March 20, 2023

NLRB Imposes Broad Restrictions On Severance Agreements

On February 21, 2023, the National Labor Relations Board (NLRB or the Board) in McLaren Macomb  (372 NLRB No. 58) held that severance agreements containing broad non-disparagement and confidentiality provisions are unlawful under the National Labor Relations Act (NLRA or the…

March 3, 2023

OSH Appeals Board Decision in Heat Illness Prevention Case Adds Clarity to Provision of Water Requirements

Sacramento—The Department of Industrial Relations’ Occupational Safety and Health Appeals Board (OSHAB) has issued a precedential decision regarding the provision of water at outdoor worksites, affirming that it must be as close as practicable to the areas where employees are…

February 27, 2023

Appellate Court Rejects Neutral Time Rounding When Electronic Timekeeping is Used

California courts have long approved neutral rounding policies (See’s Candy Shops v Superior Court, 210 Cal App. 4th 889 (2012). However, the California Court of Appeals recently in Camp v. Home Depot USA, Inc. No. H049033, 2022 WL 13874360 (Cal…

February 3, 2023