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? 

Related Links:    Unions Win Public-Contract Row (WSJ)