Delay of Gov’t-Mandated PLA Rule

The AGC-opposed proposed rule implementing government-mandated project labor agreements on direct federal construction projects of $35 million or more is slated for finalization in September 2023, though that date could be further delayed.

On June 13, the White House released its 2023 Spring Regulatory Agenda, which details additional actions that federal agencies are considering over the coming months. Of note, the proposed rule implementing government-mandated project labor agreement (PLA) on direct federal construction is slated for finalization in September 2023. This date can be pushed to a later date, particularly since September is the last month of the fiscal year when federal agencies are faced with use-it-or-lose-it funds.

As previously reported, AGC of America submitted extensive comments last year opposing a federal government-mandated project labor agreement (PLA) proposed rule, which will require every federal prime contractor and subcontractor to engage in negotiation or agree to PLAs on federal construction projects valued at $35 million or more, with limited exceptions. Through the association’s grassroots efforts, AGC members sent more than 8,500 communications against the proposal via formal comments and messages to their federally elected officials.  

AGC of America neither supports nor opposes contractors’ voluntary use of PLAs on government projects or elsewhere but strongly opposes any government mandate for contractors’ use of PLAs. AGC is committed to free and open competition for publicly-funded work. AGC has long maintained that the federal government should not mandate PLAs. The use of government-mandated PLAs hurts union contractors, open-shop contractors, and fails to promote economy and efficiency in federal procurement.

According to an AGC of America analysis of data obtained via a Construction Advocacy Fund-financed lawsuit under the Freedom of Information Act, the Department of Defense federal construction agencies rejected PLA mandates 99.4 percent of the time even when encouraged to do so under the Obama-Biden Administration. 

For more information, contact Jordan Howard at [email protected] or (703) 837-5368.

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