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Executive Order Seeks to Minimize Disruptions on Federal Construction Projects

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President Biden on Friday is set to sign an executive order that would require the use of project labor agreements in federal construction projects worth over $35 million as part of efforts to alleviate coordination challenges and minimize disruptions on large projects.

The EO could affect federal construction contracting worth approximately $262 billion and help improve job quality for nearly 200,000 workers, The White House said Thursday.

The order would require the departments of Labor and Defense, along with the Office of Management Budget, to oversee a training strategy for 40,000 contracting employees to help implement the policy.

Through the EO, the current administration intends to improve the standards for bidders on federal contracts through PLAs, reduce uncertainty in the contracting process through the standardization of dispute settlement processes, work rules and compensation costs.

“The Order will only apply to provisions in the Bipartisan Infrastructure Law that are direct federal procurement, which excludes construction projects financed through grant dollars to non-federal entities,” the White House fact sheet reads.