PLA requirements: What a project labor agreement must include

What PLAs Include and When the Law Requires Them

Project labor agreement requirements fall into two buckets: the provisions written into the agreements themselves and the laws that require PLAs on certain projects. Project labor agreements are prehire collective bargaining agreements that set the terms of employment for a specific construction project, and both sets of requirements shape how public work gets built.

What the Agreements Themselves Require

Every PLA is negotiated for its project, so no two are identical, but decades of practice have produced a recognizable core. Most agreements require:

• Wage rates and fringe benefits for every craft working the project
• No-strike, no-lockout commitments for the life of the job
• Uniform work rules and schedules harmonized across all trades
• Grievance and arbitration procedures that resolve disputes without stopping work
• Referral procedures for staffing the project with qualified craft workers
• Apprentice-to-journeyworker ratios and training requirements
• Safety standards and, in many agreements, local hiring and diversity goals

These provisions work as a package. The wage and referral terms guarantee the labor supply, the no-strike and arbitration terms guarantee the schedule and the training terms guarantee the workforce behind the next project.

Federal Requirements

The federal government requires PLAs on large-scale federal construction projects, defined as projects where the contract cost to the government is $35 million or more. The mandate stems from Executive Order 14063, signed in 2022, and is implemented through Federal Acquisition Regulation subpart 22.5, which took effect for solicitations issued on or after Jan. 22, 2024. Agencies may grant written exceptions in limited cases, such as projects of short duration or work involving a single trade. The U.S. Department of Labor maintains a project labor agreement resource guide for agencies and contractors navigating the rules.

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How the Federal Requirement Works in Practice

Contracting officers apply the requirement at the solicitation stage, and the rules direct agencies to consider market conditions when weighing exceptions. Guidance from the Office of Management and Budget instructs agencies on documenting exceptions and conducting market research before granting one. For contractors, the practical takeaway is simple: on a covered federal project, expect the solicitation to include the PLA requirement, and build the agreement’s terms into the bid from the start rather than treating it as an afterthought.

State and Local Requirements

States including Illinois, New Jersey and New York authorize or direct PLAs on public work above set dollar thresholds, and many cities, counties, school districts, ports and transit agencies adopt PLA policies of their own. Requirements vary by jurisdiction, so the governing statute or policy, not a generic template, controls what any given project demands.

Local requirements often go further than state law. Community workforce agreements layer local hiring goals, pre-apprenticeship pathways and targeted outreach for underrepresented workers on top of the standard PLA framework. Owners adopting these provisions typically set measurable targets and monitoring procedures, which turn workforce goals into enforceable requirements rather than aspirations.

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What Requirements Mean for Contractors

A PLA requirement does not restrict bidding to union firms. Any contractor can compete for the work, and winning bidders agree to the PLA’s terms for that project only. Contractors gain schedule protection, a defined labor supply and a single set of work rules, which is why many firms that bid PLA work come back for more. The Eastern Atlantic States Regional Council of Carpenters supplies 42,000 skilled union carpenters to projects built under these agreements.

Compliance runs through the agreement itself. Grievance and arbitration procedures resolve disputes over its terms without stopping work, and the signatory parties monitor wage, benefit and ratio requirements over the life of the project. Contractors new to PLA work generally find the requirements are front-loaded: once the agreement’s terms are built into a bid and a staffing plan, the day-to-day of the project runs on one clear set of rules.

Frequently Asked Questions

What are the standard requirements in a project labor agreement?

Wage and benefit standards, no-strike and no-lockout clauses, uniform work rules, dispute resolution procedures, referral systems, apprenticeship ratios and safety standards.

When are PLAs required on federal projects?

Federal construction projects with a contract cost of $35 million or more generally require PLAs under Federal Acquisition Regulation subpart 22.5.

What executive order requires PLAs?

Executive Order 14063, signed in February 2022, directs federal agencies to require PLAs on large-scale federal construction projects.

Are there exceptions to the federal PLA requirement?

Yes. Agencies may grant written exceptions for projects of short duration, work involving a single trade or specialized work available from few contractors.

Do states require project labor agreements?

Some do. Illinois, New Jersey and New York are among the states that authorize or direct PLAs on public work above set thresholds.

Must contractors be unionized to bid on PLA projects?

No. Bidding is open. The winning contractor agrees to the PLA’s terms for the duration of that project only.

Do PLA requirements apply to subcontractors?

Yes. A PLA binds every contractor and subcontractor performing covered construction work on the project.

Do PLAs require apprentices on the job?

Most set apprentice-to-journeyworker ratios, which keep training pipelines full and give apprentices the hours they need to advance.

Who enforces project labor agreement requirements?

The signatory parties enforce the agreement through its grievance and arbitration procedures, and contracting agencies enforce any statutory PLA requirements.