On February 6, 2009, President Obama signed an Executive Order which will require Project Labor Agreements (PLAs) on all Federal construction projects.

In general parlance a PLA is when the government awards contracts for construction projects exclusively to unionized firms. Under the Executive Order, such agreements would bind all contractors and subcontractors. The Order also requires a study by the Office of Management and Budget to see whether such requirements ought to be put in place whenever Federal financial assistance is used on construction projects.

The Executive order will place tremendous additional costs on contract procurement, as well as impact bid considerations. There will be impacts to a wide variety of work place issues including productivity, quality of work, safety, health and dispute resolutions.