Union and non-union contractors work side by side on a jobsite governed by a project labor agreement.
What the evidence shows about project labor agreements and competition
Yes. Non-union contractors can bid on and work on projects covered by project labor agreements. A PLA is a pre-hire agreement that sets one set of jobsite rules for every contractor and subcontractor on a project, union and non-union, before a single bid is submitted.
The idea that PLAs lock out non-union firms is one of the most persistent pieces of misinformation in public construction. The record does not support it. Fact-based resources like whatisapla.com exist for a reason: public officials, developers and taxpayers deserve answers grounded in primary research, not recycled talking points and decades-old reports. Getting the facts right matters, because these decisions shape schools, roads and public buildings that communities live with for decades.
The Eastern Atlantic States Regional Council of Carpenters represents a ready workforce of 42,000 skilled tradespeople across the Eastern Atlantic States region. That scale is the point. A PLA guarantees a trained, credentialed workforce and clear jobsite rules while leaving the bidding open to any qualified contractor that wants the job.
Can non-union contractors bid on PLA projects?
A project labor agreement is a pre-hire collective bargaining agreement for a single construction project. It sets wages, benefits, hours, safety expectations and dispute procedures before work begins, and those terms apply to every contractor and subcontractor that wins work on the job. Nothing in that structure restricts who is allowed to bid. Any qualified contractor, union or non-union, can submit a proposal and compete for the contract, then operate under the same published rules if the firm is selected. The model is not new. PLAs have been used on major public and private construction for close to a century, from the Grand Coulee and Hoover dams in the 1930s to modern stadiums, schools, energy projects and data centers. A neutral overview of how PLAs are defined confirms the same point: the terms apply to all contractors and subcontractors who successfully bid on the project.
Do project labor agreements reduce the number of bidders?
This is the heart of the competition myth, and it has been tested directly. A peer-reviewed study in the journal Public Works Management and Policy analyzed 263 bid openings for community college construction in California from 2007 to 2016. After controlling for where each project was built, how large it was, the construction business cycle and the season the work was let, the researchers found that the presence or absence of a PLA did not change the number of bidders. The underlying analysis compared 88 projects built under PLAs with 175 built without them, representing hundreds of millions of dollars in public work. PLA projects drew marginally more bidders than comparable non-PLA projects, a difference too small to be statistically meaningful. The same analysis found that low bids on PLA projects came in slightly lower, not higher. In plain terms, the claim that fewer firms bid, so taxpayers pay more, fails on both halves of the sentence. A related question, do PLAs increase costs, has its own research record pointing the same direction.
READ MORE: Project Labor Agreements strengthen communities and empower the workers
How do PLAs affect local hiring and the local economy?
Project labor agreements often do more than set jobsite rules. Many include local-hire provisions and apprenticeship commitments that keep construction dollars in the community and open career pathways for local workers, veterans and residents from underserved neighborhoods. That is a core reason cities, school boards and developers choose them for public construction. Registered apprenticeship is a central piece: PLAs channel work to programs that train the next generation of carpenters, electricians and other trades, which is how a region sustains a ready workforce rather than importing one. The Eastern Atlantic States Carpenters explain how PLAs work and why local hiring, training and accountability tend to travel together on these projects. When the workforce is local and credentialed, the paycheck and the tax base stay in the community, and the finished building reflects the standards written into the agreement.
Why does the competition myth persist?
If the evidence is this clear, why does the myth survive? Part of the answer is old data. Several of the reports still circulated today studied narrow samples or predate the modern PLA. Part of it is interest: a handful of firms would rather avoid the transparency, prevailing standards and accountability a PLA puts in writing. A PLA is a public document. Anyone can read it and judge whether the terms are fair. That openness, not exclusion, is what a project labor agreement is built to deliver. For a contractor weighing a bid, the terms are knowable in advance, which lowers risk rather than raising it.
READ MORE: Project labor agreements do not raise costs, research review finds
Key facts about PLAs and open competition:
- A PLA is a pre-hire agreement that applies equally to every contractor and subcontractor on the job.
- Any qualified contractor, union or non-union, can bid on and win PLA-covered work.
- Peer-reviewed research found PLAs did not reduce the number of bidders across 263 California bid openings.
- Low bids on PLA projects came in slightly lower than on comparable non-PLA projects.
- Local-hire and apprenticeship provisions keep wages and tax dollars in the community.
Public officials, developers and community members can see the full case for project labor agreements and how open competition, local hiring and on-time delivery come together on PLA projects.
READ MORE: Project labor agreements finish public works faster, peer-reviewed study finds
Frequently Asked Questions
Can non-union contractors work on PLA projects? Yes. Any qualified contractor, union or non-union, can bid on and work on a project covered by a PLA. The agreement sets the same jobsite rules for every firm that wins work.
Do project labor agreements ban open-shop contractors from bidding? No. A PLA does not restrict who may bid. Open-shop and non-union firms can compete for the contract and operate under the project’s agreed terms if they win.
Do PLAs reduce the number of bidders on public projects? No. A peer-reviewed study of 263 California community college bid openings found the presence or absence of a PLA did not change the number of bidders. PLA projects drew slightly more bidders on average.
Do non-union workers have to join a union to work on a PLA project? It depends on the specific agreement, but PLAs do not require workers to become permanent union members. Terms cover a single project, and workers keep their rights under federal labor law.
Do project labor agreements raise construction costs? The research does not support that claim. Studies reviewing bids and completed projects find PLAs do not raise costs and can lower them by reducing delays, disputes and rework.
Are PLAs used only on public projects? No. PLAs are used on both public and private construction, from stadiums and schools to data centers and energy projects, wherever schedule certainty and a skilled workforce matter.
What is the difference between a PLA and a community workforce agreement? They are closely related. A community workforce agreement is a PLA that adds specific local-hire and community-benefit goals, directing opportunities to residents and underserved workers.
