Historically Project Labor Agreements have served in assisting the awarding agencies in providing on time, conflict involvement free project completions.
The Agreements help reduce overall construction costs by ensuring that the work on a covered project will be completed efficiently, cooperatively, economically and without interruption.
They have also served in the best interest of public safety, community involvement and participation through local hiring and apprenticeship training. Under a Project Labor Agreement, contractors and subcontractors are required to comply with all applicable federal and state laws, ordinances and regulations requiring the payment of prevailing wages.
Terms and conditions of Project Labor Agreements generally:
- Apply to all work performed on a specific project.
- Require all contractors and subcontractors to be bound to the Agreement, whether they are union or non-union.
- Establish standard work rules, prevailing wage, hours and fringe benefits payment and dispute resolution procedures.
- Prohibit strikes, work-stoppages and lockouts.
- Promotes workforce development through establishing local hiring and disadvantaged worker employment opportunities.