efficiency, reduce delays and ensure labor harmony on large-scale projects. ABC immediately criticized the order, arguing that it would exclude the vast majority of qualified contractors from bidding on federal projects, drive up taxpayer costs by reducing the pool of competitive bids and violate the principles of fair and open competition in federal procurement. After all, we are all taxpayers. The Federal Acquisition Regulatory (FAR) Council finalized the rule implementing EO 14063 in December 2023, effective in January 2024. This rule applies to all direct federal construction contracts that meet the $35 million threshold, unless an agency head grants a specific exemption. The exemption process, sometimes called a “waiver,” is important: Agency heads retain the discretion to exempt projects when PLAs are impracticable or would reduce competition. ABC continues to encourage its members to request such waivers, as they may create opportunities for merit shop participation even under the current mandate. At least one member of the Rocky Mountain Chapter here has been successful in this process. Legal Challenges and Court Rulings In response to the final rule, ABC National and ABC Florida First Coast filed a lawsuit in March 2024 challenging the legality of the PLA mandate. The lawsuit argued that the rule unlawfully restricts competition in violation of the Competition in Contracting Act, imposes undue burdens on contractors who do not typically operate under union agreements, and delegates excessive discretion to federal agencies without adequate oversight. In January 2025, the U.S. Court of Federal Claims ruled in favor of ABC contractors in 12 separate bid protests, ordering federal agencies to remove PLA mandates from those specific solicitations. While this was a significant victory, the court did not strike down the overall rule, meaning the PLA mandate remains in effect unless challenged more broadly or repealed. These case victories also illustrate a legal vulnerability in the PLA mandate — when agencies cannot demonstrate that a PLA promotes efficiency or economy, protests are more likely to succeed. ABC believes that consistent protest pressure can weaken the practical impact of EO 14063 even if the mandate remains on the books. Congressional Advocacy and Legislative Efforts We have also taken our fight to Capitol Hill. In June 2025, ABC representatives testified before the House Oversight and Accountability Committee, describing the PLA mandate as a “special interest scheme” that benefits union contractors at the expense of the broader industry. ABC continues to advocate for the Fair and Open Competition Act, a bill that would: • Prohibit federal agencies from requiring or encouraging PLAs on federally funded construction projects. • Ensure equal access to federal contracts for all qualified contractors, regardless of labor affiliation. • Preserve the right of contractors and workers to voluntarily enter into labor agreements without government coercion. While the bill has gained support among Republican lawmakers and some moderate Democrats, it has not yet passed either chamber of Congress. To strengthen its advocacy, ABC has also built coalitions with taxpayer advocates, minority contractor associations and veterans’ groups. These allies argue that excluding 89% of the workforce undermines not only economic efficiency but also fairness to historically disadvantaged contractors and workers. In June, during our annual Legislative Conference, hundreds of ABC members from across the country visited their elected representatives at the capitol to advocate for signing a letter to President Trump requesting the rescission of the PLA Mandate Executive Order. Consequently, on July 1, 2025, a coalition of 116 members of Congress — including 95 House Representatives and 21 Senators — sent correspondence to President Trump, urging him to rescind the Biden-era regulation that requires PLAs on federal construction projects valued at $35 million or more. The lawmakers described the PLA mandate as exclusionary, anti-competitive and costly for taxpayers. In addition, ABC issued an Action Alert urging its members to contact President Trump, sign a letter opposing the PLA mandate and advocate for a new executive order that promotes fair and open competition. Impact on Contractors and the Construction Industry The PLA mandate has significant implications for contractors not affiliated with a union. Under a typical PLA, contractors must hire workers through union hiring halls, even if they have their own trained workforce; contribute to union pension and benefit plans, which nonunion employees may never benefit from; and follow union work rules, which limit flexibility and efficiency on the job site — in conflict with a company’s own established and well-honed work procedures. These requirements can be especially burdensome for small businesses, minority-owned firms and contractors in rural areas where union labor is Construction ADVOCATE 37
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