Uncertainty for Project Labor Agreements

• Pages: 67-70
• Date: 01 October 2025
• Published date: 01 October 2025
• Author: Hugh D. Brown
• Subject Matter: Derecho Público y Administrativo

Published in The Construction Lawyer Volume 44, Number 4, ©2025 by the American Bar Association. Reproduced with permission.

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67

Uncertainty for Project Labor Agreements

Hugh D. Brown

Hugh D. Brown is a shareholder with Fabyanske Westra Hart & Thomson P.A. in Minneapolis, Minnesota.

Introduction

Federal law concerning project labor agreements (PLAs) continues to evolve in unpredictable ways. Since

President Biden mandated PLAs in large-scale construction projects in 2022, that mandate has been

successfully challenged in court and was expected by many to be dealt a death blow by the incoming Trump

administration. As explained below, this has not happened, and the PLA mandate remains in eect despite

recent court decisions and memoranda, albeit on a more limited scale.

A Brief Recap

On February 4, 2022, then-President Joe Biden issued Executive Order No. (EO) 14,063, which mandated

PLAs in large-scale construction projects.1 e stated policy behind the order is to address the eciency

and timeliness challenges oen associated with large-scale construction projects.2 e order stated that these

challenges occur because construction employers do not have permanent workforces and may have diculty

predicting labor costs during contract bidding.3 Accordingly, the order mandated the implementation of

PLAs.4 e order also claimed that PLAs are eective in avoiding labor disputes because of their use of dispute-

resolution processes to resolve worksite disputes and the discouragement of stoppages, strikes, or lockouts.5

The order reads in pertinent part, “it is the policy of the Federal Government for agencies to use project labor

agreements in connection with large-scale construction projects to promote economy and efficiency in Federal

procurement.”6 Accordingly, the order requires prime contractors and subcontractors to sign a PLA prior to the

award of a contract on any “large-scale construction project.”7 A “large-scale construction project” is defined by

the order as a “Federal construction project within the United States for which the total estimated cost of the

construction contract to the Federal Government is $35 million or more.”8

On December 22, 2023, the U.S. Department of Defense (DoD), the General Services Administration (GSA),

and NASA issued the final rule implementing the order into the Federal Acquisition Regulation (FAR).9 The

PLA mandate, with limited exceptions,10 was implemented through FAR 22.5, 52.222-33, and 52.222-34.11

MVL USA, Inc. v. United States

Several construction companies challenged the new regulation. In MVL USA, Inc. v. United States,12 12 large

construction companies challenged the authority of federal agencies “to mandate prospective contractors to

enter project labor agreements with unions for consideration in federal construction projects exceeding $35

million.”13 On January 21, 2025, the U.S. Court of Federal Claims (COFC) released an opinion, where the

COFC acknowledged that, aer the passage of the Competition in Contracting Act (CICA),14 presidents

have issued executive orders to prohibit PLAs, encourage PLAs, or take a neutral stance on PLAs, but this

is the rst time in recent history that a president has mandated PLAs.15 e COFC noted market research

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