Published date: 06/12/2025
Project Labor Agreements (PLAs) can feel like a complex web of requirements, especially for contractors, suppliers, and disadvantaged business enterprises (DBEs) that are new to them. While these agreements are designed to create consistency, stability, and opportunity on public works projects, they also introduce specific expectations—particularly when union labor is involved. Below, we’ve broken down some of the most frequently asked questions to help make navigating PLAs a little more straightforward.
What is a PLA?
A Project Labor Agreement (PLA) is a pre-hire, collective bargaining agreement between a project owner (usually a public agency) and one or more labor unions. It sets the terms and conditions of employment for all workers on a specific construction project before any bids are submitted. PLAs outline things like wages, benefits, working hours, dispute resolution procedures, and safety rules.
PLAs are often used on large-scale public works projects to help ensure labor stability and timely completion. These agreements typically require that contractors hire through union halls and follow union rules—even if the contractor isn’t otherwise union-affiliated.
How do PLAs differ from standard labor agreements?
PLAs are project-specific and usually union-focused, whereas federal and state labor laws apply more broadly across industries and projects. PLAs may contain unique provisions around workforce goals (such as local hire or disadvantaged worker targets), and they often include scope-specific obligations that go beyond standard prevailing wage or apprenticeship laws.
Community Workforce Agreements (CWAs), which are similar in structure, tend to place even greater emphasis on local hiring and community outcomes.
How does a PLA apply to federally funded projects?
When federal funds are used on a project, all federal labor requirements still apply, including those under Davis-Bacon and related acts. PLAs don’t replace these rules—they layer on top of them. Project owners for federally funded projects may choose to incorporate PLAs. If a PLA is incorporated, contractors must comply with both federal and state requirements and the specific union and local hiring rules outlined in the PLA. Many PLAs bring in local union participation and regional hiring goals in addition to wage and fringe requirements.
Navigating a PLA as a material supplier is confusing. How do we know what applies to us?
Start by reviewing the PLA language and check for any exclusions—many agreements explicitly exclude certain suppliers or vendors. If it’s not clear, contact the PLA administrator to verify your obligations. If your firm is excluded, make sure your team knows they may not be allowed to perform certain tasks (like loading or unloading materials on-site), even if they’re delivering to the project. Violating this can lead to disputes or non-compliance issues later on.
How do PLAs impact a contractor’s flexibility in hiring and workforce management?
There’s some flexibility. Most PLAs allow you to bring in a certain number of core employees who’ve worked with your company before. However, these “core employees” are not always limited to the first 3–5 workers—you may be allowed up to 7, depending on the specific PLA. It’s important to understand the terms of the PLA when requesting employees, as you might be required to request your own core employees through the union hall. Any additional workers must generally be referred through the union. You’ll still direct and manage your own workforce on-site, and you can reject union referrals if they don’t meet your needs. If the hall can’t fill your request, there are typically pathways for hiring outside the union under defined conditions.
- Find local union contacts: NABTU Building Trades Directory
What documentation or tracking is required to stay compliant under a PLA?
Document everything. Requirements can vary by agreement, but you’ll likely need to maintain:
In California, you may also need to complete a DAS 142 form to request apprentices from approved programs.
- Pre-job conference paperwork
- Letter of assent
- Union referral and dispatch slips
- Apprentice registration documents
- Certified payroll reports
- Union trust fund contributions and reports
- In California, you may also need to complete a DAS 142 form to request apprentices from approved programs.
As a subcontractor, how do we know which union to submit our PLA forms to?
Your union assignment depends on the scope of work you’re performing. During the pre-job conference, unions will “claim” the work associated with their trade. Once all claims are settled, you’ll receive a final trade assignment, and that’s the union you’ll coordinate with going forward.
We haven’t been given a copy of the PLA. How do we find the project administrator?
Start by asking the contractor who hired you. If they don’t provide the information, escalate to the prime contractor. If the project is administered by a public agency, they may also be able to tell you who the administrator is.
How do PLAs impact DBEs that are non-union?
The impact can be significant. Even though your company may not be unionized, if your work falls under the PLA’s scope, you’ll have to follow all union rules, including wage rates, fringe payments – which may involve payments into union halls – and dispatch procedures. This can increase your costs, so it’s important to factor that into your bids and seek clarification early in the project lifecycle.
