The Federal Acquisition Regulatory Council (FAR Council) has issued a final rule establishing a project labor agreement (PLA) requirement for contracts that meet the definition of federal “large-scale construction projects” that are estimated to cost the U.S. government at least $35 million. The new rule goes into effect Jan. 22, 2024.
Executive Order 14063; Proposed Rule
On Feb. 4, 2022, President Joe Biden signed Executive Order 14063, Executive Order on Use of Project Labor Agreements for Federal Construction Projects. That Order provided that, with certain exceptions, government contractors and subcontractors working on federal construction projects that meet the threshold of $35 million must “become a party to a project labor agreement [PLA] with one or more appropriate labor organizations.”
