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PLAs Now Required on Federal Construction Projects Over $35 Million

A new executive order signed by President Biden ensures that any federal construction project over $35 million MUST use project labor agreements (PLAs). Work affected includes everything from maintenance of nuclear sites to base construction to waterways and flood projects. This Order could affect $262 billion in federal government construction contracting and improve job quality for about 200,000 construction workers. 

“This is great news for our members, as it helps level the playing field for our signatory contractors when they compete for government infrastructure work,” said James Banks, Executive Secretary-Treasurer of the Florida Carpenters Regional Council.

The Executive Order raises quality standards for contractors bidding on federal projects. Contractors who offer lower wages or do not train their workers will need to raise their standards to compete with other high-wage, high-quality companies. Businesses with well-trained workers will be more likely to bid for and win federal contracts. Well-trained, high-quality workers are more productive, completing projects well and on time.

Watch President Biden's remarks regarding this action: https://vimeo.com/674253548