Project Labor Agreements (PLAs) emerged in 2025 as the critical issue for construction public policy. For those of us dedicated to the principles of free enterprise and genuine competition, government-mandated PLAs represent a direct and dastardly challenge to the foundational values that drive our industry. These mandates threaten both the businesses and workers who cherish the freedom to choose how they associate and operate within the construction marketplace. Our Position on Project Labor Agreements ABC’s opposition to PLAs is rooted in our commitment to free enterprise and open competition. We argue that PLAs: • Discriminate against nonunion contractors, who make up over 89% of the U.S. construction workforce. • Increase construction costs by 12-20%. For example, a 2011 study by the Beacon Hill Institute of school construction in Massachusetts found costs 14-18% higher under PLAs, while similar reviews in California and New Jersey produced comparable results. • Limit competition by discouraging small businesses and minority-owned firms from bidding on public projects. • Impose union-only rules, such as hiring through union halls and contributing to union benefit plans, even for nonunion contractors. • Exclude qualified apprenticeship programs, such as the ones hosted by our very own Construction Industry Training Council (CITC). This narrows the pipeline of future workers and exacerbates skilled labor shortages. ABC supports voluntary labor agreements but opposes any government mandate that requires contractors to enter into PLAs as a condition of winning public work. That’s unfair. Executive Order 14063 and the Federal PLA Mandate A major development for the PLA threat came with Executive Order 14063, signed by President Biden in February 2022. This order mandates the use of PLAs on federal construction projects valued at $35 million or more. The administration framed the order as a way to promote Project Labor Agreements The Gathering Storm Against Fair Competition By JACK TATE, PRESIDENT & CEO ABC Rocky Mountain 36
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