The executive order of earlier this year also mandated new training for some 40,000 federal employees involved with managing contracts. Image: A. L. Spangler/Shutterstock.com
By: FEDweek StaffRules have been proposed to carry out a Biden administration executive order calling for use of project labor agreements—which include standardize work rules, compensation costs, and dispute settlement processes on construction projects—for large-scale federal construction projects.
“Large-scale construction projects often have multiple employers at a single location and a lack of permanent workforce, which makes it difficult for federal contractors to predict labor costs when bidding on contracts and to ensure that a steady supply of labor exists on the contracts being performed. Additionally, a labor dispute involving one employer can delay the entire project,” says an August 19 Federal Register notice from GSA, DoD and NASA.
The Federal Acquisition Regulation currently encourages use of project labor agreements to address those issues, it says, but under the proposed rules they would be generally mandatory for construction projects costing $35 million or more—with some exceptions continuing—while still discretionary for those below that threshold.
The executive order of earlier this year also mandated new training for some 40,000 federal employees involved with managing contracts.
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