Project Labor Agreement
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.