Large Construction Projects – PLA Or Non-PLA... That Is The Question

Unique labour relations issues often arise in connection with large scale construction projects. One way in which these challenges can be addressed is through the use of a Project Labour Agreement (or "PLA"). PLA's can be used to address labour issues, establish cost standards and keep construction contracts on track by avoiding costly work stoppages. Recently, we have seen an increased interest in the use of PLA's, particularly in construction in British Columbia's liquid natural gas industry.

Generally speaking, a PLA is an agreement between the owner/developer (or a subsidiary or group of contractors) of a specific construction project and the various trade unions that will perform that construction work. The PLA typically governs all of the working conditions for a specific construction project. In most cases, the terms of the PLA will apply to all contractors and subcontractors working on the project (regardless of whether or not they are union or non-union),