What is a Project Labor Agreement (PLA)?
Definition of Project Labor Agreement ( PLA ) in Construction
This is a specific agreement, that the owner makes on a project, to ensure that all participants in the project have equal labor rates, and play fair with others contractors on the project.
A PLA is very typically created for public projects that have a strong union influence and a political nature. The PLA ensures that even an ” open shop ” contractor ( non – union ) is obligated to pay a rate, reasonably close to the union pay scale, and will compete on an even playing field with the union subs and contractors. Most PLA’s will succeed in raising the price point of the project, due to the insistence that labor rates are maintained at a level higher than the normal ” non – union ” local rates. The negotiations of a PLA are interesting, due to the fact that it incorporates the wants and needs of the unions, together with the ” play fair ” objectives of the non – union contractors. All of these negotiations are conducted with the political correctness requirements of the municipalities politicians. An interesting combination of opinions, skills and objectives.