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GSA Final Rule to Require Project Labor Agreements on Federal Construction Projects

January 9, 2024

On December 18, 2023, the General Services Administration (GSA) introduced a final rule enforcing Executive Order 14063, requiring federal agencies to implement project labor agreements (PLA) on large-scale federal construction projects. PLAs are pre-hire collective bargaining agreements with construction trades unions, establishing terms and conditions for all workers on specific federal construction projects.

The rule amends the Federal Acquisition Regulation, stipulating that federal construction projects exceeding $35 million must adopt a PLA to govern terms and conditions for construction workers. All involved parties must negotiate and establish these terms. The Biden Administration asserts that this expansion aims to ensure a predictable supply of skilled workers and eliminate construction delays caused by labor unrest.

The rule is set to affect around 200,000 workers on federal construction projects and will be effective  January 22, 2024. Opponents argue that the requirement may discriminate against non-union contractors and substantially raise costs for federal construction projects.