Posted on April 23, 2010 by Chris Cheatham

Federal Construction To Require Project Labor Agreements

For many in the green building industry, federal projects have provided an opportunity for much needed work as private development has stalled.  However, contractors should be aware of a significant change to federal construction contracts coming down the pike.

On April 13, President Barack Obama issued an Executive Order that will result in new requirements for project labor agreements:

"The Obama administration is set to issue a rule Tuesday that will allow federal agencies to require that contractors on large-scale public construction projects agree to union representation for workers. . . . The rule doesn't mandate that federal agencies require contractors to bargain with unions on all jobs, but it clears the path for government agencies to make such agreements a requirement for contractors on jobs costing $25 million or more."

If you are a contractor or subcontractor still looking to get involved in federal green building projects, it is important to consider the implications of this Executive Order.  Projects greater than $25 million will likely require some sort of project labor agreement.   

Is your company prepared for the requirements associated with a union project? 

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Comments (2) Read through and enter the discussion with the form at the end
Scott Wolfe - April 23, 2010 7:03 PM

Grreat post, Chris. Important issue that not only affecfs those involved with green building contracts, but with any federal works.

Timothy R. Hughes - April 25, 2010 7:18 PM

ABC has really been pounding on the PLAs and their implications. This is an issue that may end up having serious financial ripples for years depending on how it shakes out.

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