FAR 22.502—Definitions.
Plain-English Summary
FAR 22.502 is the definitions section for Subpart 22.5, which governs project labor agreements on federal construction projects. It defines four core terms that control when the subpart applies and how it operates: "construction," "labor organization," "large-scale construction project," and "project labor agreement." These definitions matter because they determine whether a project falls within the subpart’s scope, whether a labor organization qualifies for purposes of the rule, whether the project meets the dollar threshold for special treatment, and what kind of agreement counts as a project labor agreement. In practice, contracting officers use these definitions to decide whether to consider, require, or evaluate a PLA strategy on a federal construction acquisition, while contractors use them to assess labor strategy, pricing, and compliance obligations. Because the definitions are tied to both federal procurement policy and labor-law concepts, they also help avoid misclassification of projects and agreements that could lead to solicitation errors, bid protests, or performance disputes.
Key Rules
Construction is broadly defined
"Construction" includes construction, reconstruction, rehabilitation, modernization, alteration, conversion, extension, repair, or improvement of buildings, structures, highways, or other real property. The term is intentionally broad and covers more than new-build work, so agencies must look at the actual scope of work rather than the project label.
Labor organization has a statutory meaning
A "labor organization" is defined by reference to 29 U.S.C. 152(5), but only for organizations of which building and construction employees are members. This ties the FAR definition to the National Labor Relations Act and limits the term to labor organizations relevant to construction labor relations.
Large-scale project has a dollar threshold
A "large-scale construction project" is a Federal construction project within the United States with a total estimated cost to the Federal Government of $35 million or more. The threshold is based on the total estimated cost of the construction contract, so agencies must estimate carefully and apply the definition consistently at the acquisition planning stage.
Project labor agreement is a pre-hire CBA
A "project labor agreement" is a pre-hire collective bargaining agreement with one or more labor organizations that sets the terms and conditions of employment for a specific construction project. It must also be an agreement described in 29 U.S.C. 158(f), which means it is a recognized construction-industry labor agreement rather than a general labor arrangement.
Definitions control subpart applicability
These terms are not standalone policy statements; they establish the scope and mechanics of Subpart 22.5. Whether a project is covered, whether a labor organization is relevant, and whether a particular agreement qualifies all depend on these definitions.
Responsibilities
Contracting Officer
Identify whether the acquisition involves "construction" as defined here, determine whether the project is a "large-scale construction project," and ensure any PLA-related planning, solicitation language, or evaluation approach uses the correct statutory and FAR definitions.
Agency
Estimate project cost accurately, classify the work correctly, and apply the subpart only when the project meets the defined criteria. Agencies must also align acquisition planning with labor policy and ensure internal reviews use the same definitions.
Contractor
Assess whether the solicitation involves covered construction work and whether a proposed or required PLA fits the FAR definition. Contractors must evaluate labor strategy, pricing, and subcontracting implications based on whether the project meets the large-scale threshold and whether a qualifying PLA is involved.
Labor Organization
If participating in a PLA, ensure it qualifies as a labor organization under the referenced statute and that the agreement is a pre-hire collective bargaining agreement for the specific project as required by the definition.
Practical Implications
The $35 million threshold is a key trigger, so cost estimating errors can change whether the project is treated as a large-scale construction project under the subpart.
Because "construction" is defined broadly, agencies should not assume that renovation, repair, or modernization work falls outside the rule.
The definition of labor organization is tied to labor law, so users should verify the statutory meaning rather than relying on informal or industry-only usage.
A document labeled as a project labor agreement does not automatically qualify; it must meet the specific pre-hire collective bargaining agreement definition in 29 U.S.C. 158(f).
Misapplying these definitions can lead to flawed acquisition planning, solicitation defects, or disputes over whether PLA-related requirements were properly included or evaluated.
Official Regulatory Text
As used in this subpart- Construction means construction, reconstruction, rehabilitation, modernization, alteration, conversion, extension, repair, or improvement of buildings, structures, highways, or other real property. Labor organization means a labor organization as defined in 29 U.S.C. 152(5) of which building and construction employees are members. Large-scale construction project means a Federal construction project within the United States for which the total estimated cost of the construction contract to the Federal Government is $35 million or more. Project labor agreement means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project and is an agreement described in 29 U.S.C. 158(f) .