Project Labor Agreements

What Are They?

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In every business venture, community leaders and employers search for productive,safe, and problem-free working arrangements while striving to maximize profit.

Project Labor Agreements (PLA's) are the magnet that brings these elements together. It is an agreement between the owner of a project and the contractor that lays out both parties’ responsibility on a particular construction project.

PLA's are exceptional arrangements owners can utilize to set standards that support a successful and profitable project. With a PLA, project leadership has a solid voice in all construction activities and holds everyone accountable for their work.

Project Labor Agreements

What Do They Bring?

PLA's are transparent, fair, and mutually agreed upon contracts that benefit everyone, from project owners and contractors to the workforce. It improves and clarifies communications between all parties while establishing guidelines that everyone has agreed to follow.

PLA's are a practical and manageable way of bringing participants aboard before a project begins. They clearly outline and explain responsibilities before ever taking that first step. PLA's are vital for transparency and gaining effective cooperation. This allows all parties to know what they are paying for and what to expect before the project begins.

Project Labor Agreements


The advantages of PLA's are varied, tested, and most importantly, have worked successfully in the construction industry since the 1930s.

PLA's endure because of the benefits they offer, including:

PLA's eliminate hidden costs. Jobsite standards and labor costs are determined before starting a project and reduce expensive slowdowns and over-runs.

PLA's encourage higher quality workmanship by including opportunities for trained construction workers and apprentices who have the skill needed to complete the project.

PLA's frequently require local worker language so that projects engage and work with communities, when possible, which directly boosts the regional economy.

PLA's may include a stipulation to employ women or minorities. This encourages diversity by securing and training a local workforce to obtain jobs in their community.

PLA's often have requirements for workers to have OSHA training. This reduces expenses from potential work-related injuries.

Project Labor Agreements

3 Most Common Myths

PLA Myths
Myth 1 - Less Competition
Fact -All contractors — union and non-union — can bid on projects that have a Project Labor Agreement.

Myth 2 -
Increased Cost

Fact -PLA's establish transparency with costs upfront, reducing overruns.

Myth 3 -
Restricts Management

Fact -Management retains all its rights under Project Labor Agreements.
Project Labor Agreements

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