52.222-34 Project Labor Agreement
Source: FAR 52.222-34 on acquisition.gov
FAR 52.222-34 mandates that contractors on large-scale federal construction projects maintain and enforce a Project Labor Agreement to ensure labor stability and compliance throughout the project.
Overview
FAR 52.222-34 requires contractors on large-scale federal construction projects (≥$35 million) to enter into and maintain a Project Labor Agreement (PLA) with labor organizations. The clause defines key terms, mandates the maintenance of the PLA throughout the contract, and requires flow-down of these requirements to subcontractors. Alternate versions of the clause (Alternate I and II) provide additional requirements for negotiating, executing, and submitting PLAs, as well as specific procedures for orders under task or delivery order contracts. The PLAs must bind all parties, prevent labor disruptions, establish dispute resolution mechanisms, and comply with all applicable laws and regulations. The clause ensures labor stability and cooperation on major federal construction projects.
Key Rules
- PLA Requirement
- Contractors must have a current, executed PLA in place for the duration of the contract on qualifying projects.
- Subcontractor Flow-Down
- The substance of the clause must be included in all subcontracts for construction work on the project.
- Alternate I/II Requirements
- May require negotiation and submission of a PLA, binding all parties, preventing strikes/lockouts, and establishing dispute resolution and labor-management cooperation mechanisms.
Responsibilities
- Contracting Officers: Ensure inclusion of the clause, verify PLA submission, and monitor compliance.
- Contractors: Negotiate, execute, maintain, and flow down PLAs to subcontractors; comply with all PLA terms and legal requirements.
- Agencies: Oversee contract compliance and enforce PLA requirements.
Practical Implications
- Ensures labor stability and reduces risk of disruptions on large federal construction projects.
- Contractors must be proactive in negotiating and maintaining PLAs and ensuring all subcontractors comply.
- Failure to comply can result in contract issues or enforcement actions.
As prescribed in 22.505(b)(1), insert the following clause:
Project Labor Agreement (Jan 2024)
(a) Definitions. As used in this clause-
Construction means construction, reconstruction, rehabilitation, modernization, alteration, conversion, extension, repair, or improvement of buildings, structures, highways, or other real property.
Labor organization means a labor organization as defined in https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section152&num=0&edition=prelim" target="_blank">29 U.S.C. 152(5) of which building and construction employees are members.
Large-scale construction project means a Federal construction project within the United States for which the total estimated cost of the construction contract(s) to the Federal Government is $35 million or more.
Project labor agreement means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project and is an agreement described in http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section158(f)&num=0&edition=prelim" target="_blank">29 U.S.C. 158(f).
(b) The Contractor shall maintain in a current status throughout the life of the contract the project labor agreement entered into prior to the award of the contract.
(c) Subcontracts. The Contractor shall include the substance of this clause, including this paragraph (c), in subcontracts with subcontractors engaged in construction on the construction project.
(End of clause)
Alternate I (Jan 2024) . As prescribed in 22.505 (b)(2), substitute the following paragraphs (b) through (f) for paragraphs (b) and (c) of the basic clause:
(b) The Contractor shall—
(1) Negotiate or become a party to a project labor agreement with one or more labor organizations for the term of this construction contract; and
(2) Submit an executed copy of the project labor agreement to the Contracting Officer as required in the solicitation.
(c) The project labor agreement reached pursuant to this clause shall-
(1) Bind the Contractor and subcontractors engaged in construction on the construction project to comply with the project labor agreement;
(2) Allow the Contractor and all subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements;
(3) Contain guarantees against strikes, lockouts, and similar job disruptions;
(4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement;
(5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and
(6) Fully conform to all statutes, regulations, Executive orders, and agency requirements.
(d) Any project labor agreement reached pursuant to this clause does not change the terms of this contract or provide for any price adjustment by the Government.
(e) The Contractor shall maintain in a current status throughout the life of the contract the project labor agreement entered into pursuant to this clause.
(f) Subcontracts. The Contractor shall require subcontractors engaged in construction on the construction project to agree to any project labor agreement negotiated by the prime contractor pursuant to this clause, and shall include the substance of paragraphs (d) through (f) of this clause in subcontracts with subcontractors engaged in construction on the construction project.
Alternate II (Jan 2024). As prescribed in 22.505 (b)(3), substitute the following paragraphs (b) through (f) for paragraphs (b) through (f) of the basic clause:
(b) When notified by the agency ( e.g., by the notice of intent to place an order under 16.505(b)(1)) that this order will use a project labor agreement, the Contractor shall negotiate or become a party to a project labor agreement with one or more labor organizations for the term of the order. The Contracting Officer shall require that an executed copy of the project labor agreement be submitted to the agency—
(1) With the order offer;
(2) Prior to award of the order; or
(3) After award of the order.
(c) The project labor agreement reached pursuant to this clause shall—
(1) Bind the Contractor and subcontractors engaged in construction on the construction project to comply with the project labor agreement;
(2) Allow all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements;
(3) Contain guarantees against strikes, lockouts, and similar job disruptions;
(4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement;
(5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and
(6) Fully conform to all statutes, regulations, Executive orders, and agency requirements.
(d) Any project labor agreement reached pursuant to this clause does not change the terms of this contract or provide for any price adjustment by the Government.
(e) The Contractor shall maintain in a current status throughout the life of the order any project labor agreement entered into pursuant to this clause.
(f) Subcontracts. For each order that uses a project labor agreement, the Contractor shall—
(1) Require subcontractors engaged in construction on the construction project to agree to any project labor agreement negotiated by the prime contractor pursuant to this clause; and
(2) Include the substance of paragraphs (d) through (f) of this clause in subcontracts with subcontractors engaged in construction on the construction project.