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ARTICLE · 23 FEBRUARY 2022

Biden Administration EO Brings Major Changes For Federal Construction Contractors

On Feb. 4, 2022, President Biden issued Executive Order 14063 — Use of Project Labor Agreements for Federal Construction Projects (EO), which mandates the use of Project Labor Agreements (PLA)...

United StatesReal Estate and Construction

On Feb. 4, 2022, President Biden issued Executive Order 14063 — Use of Project Labor Agreements for Federal Construction Projects (EO), which mandates the use of Project Labor Agreements (PLA) on large-scale federal construction projects valued at $35 million or more. According to the Biden administration, the EO is intended to promote economy and efficiency in the administration and completion of federal construction projects. 

Labor organizations say the EO will streamline the negotiation process for contractors at all tiers, and give employers access to a pool of highly skilled workers. In contrast, construction industry associations say that, due to low union participation and severe labor shortages, the EO will limit competition on federal construction projects and inflate project costs for both employers and federal agencies. Regardless of its policy merits, this EO represents a significant change in federal construction procurement policy and deserves careful

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