The Biden administration has released a proposal that would require project labor agreements (PLAs) on large federal construction projects. It would give contracting officers at federal agencies some latitude to opt out of adopting a labor agreement through a variety of exceptions, but industry groups say the mandate could raise the costs of construction and discourage contractors who choose not to affiliate with a union from bidding on larger projects that use federal dollars.
The proposed rule, published in the Federal Register August 19, would modify the U.S. Federal Acquisition Regulation (FAR) for projects valued at $35 million or more. The action by the FAR Council, whose members include representatives from the Office of Management and Budget, the Dept. of Defense and the General Services Administration, is in response to a Feb. 4 executive order by President Joe Biden stating that PLAs should be mandatory on federal projects, with some exceptions.