Project Labor Agreement (PLA)

A project labor agreement (PLA) is a pre-hire collective bargaining agreement with one or more labor organizations that sets the terms and conditions of employment for a specific construction project. It is signed before any workers are hired.

A PLA binds every contractor and subcontractor on the project for its duration, whether or not that company is normally a union employer.

How Does a Project Labor Agreement Work?

The project owner or its construction manager negotiates the agreement with the relevant building trades unions. Bid documents then require each contractor to sign on as a condition of working on the project.

• Uniform wages, hours, and work rules across trades.
• No-strike and no-lockout commitments.
• A single procedure for resolving disputes.
• Hiring through union referral systems.
• Contributions to union benefit funds.

The trade-off is predictability for flexibility. Owners gain labor stability on a long project, while contractors accept terms they did not negotiate themselves.

When Is a Project Labor Agreement Required?

On federal work, Executive Order 14063 and the Federal Acquisition Regulation direct agencies to require a PLA on large-scale construction projects, defined as $35 million or more, unless an exception applies.

The policy has been contested. A 2026 Congressional Research Service brief reports that the order remains in place while the implementing rule faces court challenges, and GSA's current procedures tell agencies to use PLAs when practicable and cost-effective.

State and local governments and private owners may also choose to use PLAs. Always read the solicitation, since requirements differ by project and can change.

How Is a PLA Different From a Collective Bargaining Agreement?

Both result from collective bargaining, but a PLA is tied to the job, not the company. When the project closes out, the obligations end with it.

What Does a PLA Mean for HR and Payroll?

A contractor that signs a PLA takes on union-style obligations for that project. Our guide to union and non-union construction payroll explains wage tables, fund contributions, and reporting.

Public projects with a PLA usually carry prevailing wage rules under laws such as the Davis-Bacon Act, plus weekly certified payroll. The contractor must satisfy all of them at once.

Project-specific records matter most. HR Cloud's onboarding software captures referral and classification documents before day one, and time tracking records hours by project so PLA work stays separate from other jobs.

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Frequently Asked Questions

Q: What is a project labor agreement?

A: It is a collective bargaining agreement negotiated before hiring that sets wages, work rules, and dispute procedures for everyone working on one construction project.

Q: Who signs a project labor agreement?

A: The project owner or its representative, the participating unions, and every contractor and subcontractor that performs covered work on the project.

Q: Can non-union contractors work under a PLA?

A: Yes. They may bid and perform the work, but they must sign the agreement and follow its terms for that project.

Q: Are PLAs required on federal construction projects?

A: Federal rules call for them on projects of $35 million or more unless an exception applies. The requirement is under legal challenge, so check each solicitation.

Q: What does a PLA usually include?

A: Common terms are uniform wages and hours, no-strike and no-lockout clauses, dispute resolution steps, union referral hiring, and benefit fund contributions.

Q: How long does a PLA last?

A: It lasts for the life of the project it covers. Once the project is complete, the agreement ends.