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ARTICLE · 10 FEBRUARY 2022

Project Labor Agreements Will Now Be Required For Large-Scale Federal Construction Projects

Peckar & Abramson, P.C.
Peckar & Abramson, P.C.
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Peckar & Abramson, P.C.

Peckar & Abramson, P.C.

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On February 4, 2022, President Biden issued an Executive Order on Use of Project Labor Agreements for Federal Construction Projects (EO), which will require the use of project labor agreements (PLAs)...

United StatesGovernment, Public Sector

On February 4, 2022, President Biden issued an Executive Order on Use of Project Labor Agreements for Federal Construction Projects (EO), which will require the use of project labor agreements (PLAs) on large-scale federal construction projects with a total estimated cost of $35 million or more unless a senior official within the agency grants an exception. Agencies also may require the use of PLAs on projects that are less than $35 million.

While the EO is effective immediately, it will only apply to solicitations issued on or after the effective date of final regulations issued by the FAR Council. The FAR Council has 120 days to propose regulations implementing the EO. Often there is a significant period of time between the publication of proposed regulations, evaluation of public comments, and publication of final regulations.

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