Under Executive Order from February 4, 2022, Project Labor Agreements (PLAs) will be required for any federal government construction project of approx. $35 million or more, starting immediately.
This new executive order comes on the heels of the historic Infrastructure Investment and Jobs Act passed in November 2021, which has financed large-scale federal projects across the country. Any contractors or agencies looking to get in on opportunities from the new law will need to keep this recent Order in mind.
Defining Project Labor Agreements
A PLA generally refers to a pre-hiring collective bargaining agreement amongst contractors and trade unions that sets terms and conditions of employment for a specific construction project before agencies begin bidding on the project.
For projects that fall under this Executive Order, the PLA must:
It should be noted, however, that the Executive Order will NOT affect state or local projects, even those financed by the bill. So, New York City or New York State infrastructure projects will not require a PLA, unless they so choose to use one.
In addition, a senior official within an agency may grant an exception from the PLA requirement if it:
With this in mind, contractors and agencies looking to get in on the upcoming influx of infrastructure projects should be sure to check if the project requires a PLA, and look over all terms before bidding.
For more guidance on how the latest construction and building code developments may affect your project, please reach out to the experts at Outsource Consultants.
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