On Friday, Feb. 4, 2022, President Biden signed an executive order requiring the use of project labor agreements (PLAs) on federal construction projects over $35 million.

PLAs, or collective bargaining agreements between unions and the contractors working on construction sites, will help promote a well-trained, highly skilled workforce by raising the standard on contractors that can work on federal projects. Nearly 200,000 workers are currently involved in federal construction contracts.

According to a White House press release, requiring PLAs will also “help alleviate the management and coordination challenges that can stymie progress on major construction projects,” by promoting coordination between diverse contractors and sub-contractors on the job site.

These benefits of PLAs mean the order will help ensure projects are completed in a cost-effective, timely fashion.

“This order prioritizes safety, value, quality, and on-time delivery of our federal projects, built with a highly skilled and trained workforce—all areas in which NECA contractors exceed their competitors,” said David Long, NECA’s CEO in a statement. “Many private owners across America utilize PLAs, and federal agencies have seen the value that these agreements provide, bringing success to construction projects across the U.S. This ensures American tax dollars are going toward federal construction projects that will be completed at the highest standard.”

“I know from experience PLAs guarantee great projects and good jobs,” said Secretary of Labor Marty Walsh during the signing.

The signing ceremony was held at the union office of Iron Workers Local 5 in Upper Marlboro, Md. Several organizations were invited to attend, including NECA.