Contractors Hot Line is part of the Catalyst Communications Network publication family.
Contractors Hot Line is part of the Catalyst Communications Network publication family.
Associated Builders and Contractors (ABC) and its Florida First Coast chapter have initiated legal action in federal court to oppose the Biden administration's directive mandating project labor agreements (PLAs) on federal construction contracts. ABC's lawsuit contends that President Joe Biden lacks the legal and constitutional authority to enforce this regulation, which undermines efficiency in federal contracting and unfairly favors unionized contractors, representing only about 10% of the U.S. construction workforce.
ABC estimates that Biden's pro-PLA policy will impact approximately 180 federal construction contracts annually, totaling $16 billion in value nationwide. This includes numerous federal projects in Jacksonville and dozens more across Florida and the Southeast.
“ABC seeks a national injunction against President Biden’s executive overreach, which makes a mockery of federal procurement laws and rewards powerful special interests with government construction contracts at the expense of taxpayers and the principles of fair and open competition in government procurement,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “ABC has heard from large and small federal contractors—including firms signatory to union agreements—and concerned federal agency contracting officers that the Biden administration’s controversial PLA policy has already stifled competition and raised costs on federal construction contracts in Florida and across the country. This policy will continue to do so absent a successful legal challenge.”
“When mandated by government agencies, PLAs needlessly increase construction costs by 12% to 20%, reduce opportunities for qualified large and small contractors and their craft and noncraft employees, and exacerbate the construction industry’s worker shortage of more than half a million people by discriminating against the nearly 90% of the industry workforce that is not unionized,” said Brubeck. “PLAs discourage competition by forcing contractors to sign union collective bargaining agreements, which require them to follow inefficient and cumbersome union work rules, hire most or all workers from union halls and apprenticeship programs, accept compulsory union representation on behalf of any remaining members of its existing workforce and expose them to union wage theft of up to 34% of their compensation unless they join a union and vest in union benefits plans.”
The lawsuit, filed by ABC and its Florida First Coast chapter in the U.S. District Court for the Middle District of Florida in Jacksonville, challenges the Federal Acquisition Regulatory Council's final rule issued on Dec. 22, 2023, along with a related White House Office of Management and Budget memo from Dec. 18, 2023. These directives implement President Biden's Executive Order 14063, issued on Feb. 4, 2022, which mandates PLAs on federal construction projects exceeding $35 million.
ABC's legal filing argues that the Biden administration's PLA rule exceeds executive authority, violates constitutional rights, and contravenes various federal laws including the Administrative Procedure Act, the Federal Property Administrative Services Act, and the Competition in Contracting Act. The complaint underscores the rule's adverse impact on competition and the imposition of union agreements as a prerequisite for federal construction contracts.
ABC members have historically secured 54% of federal contracts valued at $35 million or more during fiscal years 2009-2023, delivering award-winning projects safely, on time, and within budget, without the imposition of government-mandated PLAs.