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

WPCCA Microsoft Outlook Level 2 Course: Part 2

Join us for part 2 of our Microsoft Outlook Level 2 Course. In this session, Microsoft Master Instructor, JoLynn Rihn, will cover organization techniques such as categorizing items and managing junk mail effectively. Participants will have the opportunity to hone…

May 17, 2024

WPCCA Microsoft Outlook Level 2 Course: Part 1

Join us for part 1 of our Microsoft Outlook Level 2 Course. This course will delve deeper into the functionalities of Microsoft Outlook, empowering participants to streamline their communication, organization, and task management processes. In this session, Microsoft Master Instructor,…

May 17, 2024

WPCCA Bluebeam Takeoffs & Estimating Course

In this course, a Bluebeam Certified Instructor at U.S. CAD will train users on specialized skills leveraging Bluebeam Revu for quantity takeoff and estimation processes, particularly in industries like construction, architecture, and engineering. The class will equip users with the…

May 16, 2024

WPCCA Webinar: 5 Secrets to Healthier Cash Flow for Subcontractors

As a subcontractor, you’re constantly financing your clients’ projects. You’re funding the job and doing the work before you’re paid. And getting paid isn’t easy. Only 5% of subcontractors report always being paid on time, and the average time to get…

May 9, 2024

WPCCA Microsoft Project Level 1 Course – Lesson 4

Join us for our fourth lesson of Microsoft Project Level 1 Course taught by Microsoft Certified Professional, James Law. This lesson will continue the training on managing project resources including entering costs, assigning resources to tasks, and resolving conflicts. The…

April 4, 2024
MORE STORIES