FAR 52.222-34—Project Labor Agreement.
Plain-English Summary
FAR 52.222-34, Project Labor Agreement, addresses when and how a federal construction contract or order must use a project labor agreement (PLA), and what that agreement must contain. The clause defines key terms such as construction, labor organization, large-scale construction project, and project labor agreement, so contractors and contracting officers know when the requirement applies. It has a basic version for contracts where a PLA already exists before award, plus Alternate I for contracts where the contractor must negotiate or join a PLA after award, and Alternate II for orders under indefinite-delivery contracts where the agency decides to use a PLA for a particular order. The clause also covers submission of the executed PLA, required PLA content, the effect of the PLA on contract pricing and terms, the duty to keep the PLA current throughout performance, and flowdown requirements to subcontractors. In practice, this clause is intended to promote labor stability, reduce disruptions, and ensure that large federal construction projects proceed under a consistent labor framework without changing the Government’s contract price or terms because of the PLA itself.
Key Rules
Key definitions control scope
The clause defines construction broadly and limits the PLA concept to a pre-hire collective bargaining agreement under 29 U.S.C. 158(f). It applies to large-scale construction projects, meaning Federal construction projects in the United States with an estimated total construction cost of $35 million or more.
Basic clause covers existing PLAs
Under the basic clause, the contractor must maintain in current status throughout the life of the contract any PLA entered into before award. This version assumes the project already has a PLA in place and focuses on keeping it effective during performance.
Alternate I requires contractor to obtain PLA
For covered contracts using Alternate I, the contractor must negotiate or become a party to a PLA for the term of the construction contract and submit an executed copy to the contracting officer as required by the solicitation. The PLA must bind the contractor and subcontractors, permit competition regardless of existing collective bargaining status, include no-strike/no-lockout protections, provide dispute resolution procedures, support labor-management cooperation, and fully conform to law and agency requirements.
Alternate II applies to task or delivery orders
For covered orders under indefinite-delivery contracts, the agency may notify the contractor that the order will use a PLA, and the contractor must then negotiate or join one for the term of the order. The contracting officer may require the executed PLA with the order offer, before award, or after award, depending on the solicitation and ordering process.
PLA cannot change contract price or terms
Any PLA reached under Alternate I or II does not change the terms of the federal contract or order and does not entitle the contractor to a Government price adjustment. The contractor bears the responsibility to incorporate the PLA into performance without seeking additional compensation from the Government because of the agreement itself.
PLA must stay current
Whether under the basic clause, Alternate I, or Alternate II, the contractor must maintain the PLA in current status throughout the life of the contract or order. This means the agreement must remain effective and applicable for the full performance period, not just at award.
Subcontract flowdown is mandatory
The contractor must include the substance of the clause in subcontracts with subcontractors engaged in construction on the project. Under Alternate I and II, subcontractors must agree to the applicable PLA, and the flowdown must preserve the key requirements related to pricing, current status, and subcontractor obligations.
Responsibilities
Contracting Officer
Determine whether the solicitation or order requires a PLA and insert the correct version of the clause or alternate. For Alternate II, notify the contractor that the order will use a PLA and specify when the executed PLA must be submitted.
Contractor
If the clause applies, maintain an existing PLA in current status or negotiate/join a PLA as required by the applicable clause version. Submit the executed PLA when required, keep it effective throughout performance, and ensure subcontractors comply with the PLA and flowdown requirements.
Subcontractors
When engaged in construction on the project, comply with the applicable PLA and any flowed-down clause requirements. They must accept the project labor framework required for the project even if they are not otherwise signatory to a collective bargaining agreement.
Agency
For Alternate II orders, decide whether the order will use a PLA and communicate that decision through the ordering process. The agency must also ensure the solicitation or order structure supports the required timing for PLA submission and enforcement.
Practical Implications
Contractors should identify early whether the project meets the $35 million threshold and whether the solicitation uses the basic clause, Alternate I, or Alternate II, because the compliance obligations differ significantly.
A common pitfall is waiting too long to negotiate or execute the PLA; contractors should treat PLA formation as a pre-award or immediate post-notice task, not a later administrative step.
Prime contractors must make sure subcontract language actually flows down the required substance of the clause and that subcontractors are bound to the project-specific labor terms.
Because the clause says the PLA does not change contract terms or justify a price adjustment, contractors should price labor strategy and administrative burden into their proposal rather than expecting a later equitable adjustment.
Contracting officers should verify that the solicitation or order clearly states when the executed PLA must be submitted and should confirm the agreement includes the required no-strike, dispute-resolution, cooperation, and legal-conformance provisions.
Official Regulatory Text
As prescribed in 22.505 (b)(1) , insert the following clause: Project Labor Agreement (Jan 2024) (a) Definitions . As used in this clause- 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(s) 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) . (b) The Contractor shall maintain in a current status throughout the life of the contract the project labor agreement entered into prior to the award of the contract. (c) Subcontracts . The Contractor shall include the substance of this clause, including this paragraph (c), in subcontracts with subcontractors engaged in construction on the construction project. (End of clause) Alternate I (Jan 2024) . As prescribed in 22.505 (b)(2), substitute the following paragraphs (b) through (f) for paragraphs (b) and (c) of the basic clause: (b) The Contractor shall— (1) Negotiate or become a party to a project labor agreement with one or more labor organizations for the term of this construction contract; and (2) Submit an executed copy of the project labor agreement to the Contracting Officer as required in the solicitation. (c) The project labor agreement reached pursuant to this clause shall- (1) Bind the Contractor and subcontractors engaged in construction on the construction project to comply with the project labor agreement; (2) Allow the Contractor and all subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements; (3) Contain guarantees against strikes, lockouts, and similar job disruptions; (4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement; (5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and (6) Fully conform to all statutes, regulations, Executive orders, and agency requirements. (d) Any project labor agreement reached pursuant to this clause does not change the terms of this contract or provide for any price adjustment by the Government. (e) The Contractor shall maintain in a current status throughout the life of the contract the project labor agreement entered into pursuant to this clause. (f) Subcontracts . The Contractor shall require subcontractors engaged in construction on the construction project to agree to any project labor agreement negotiated by the prime contractor pursuant to this clause, and shall include the substance of paragraphs (d) through (f) of this clause in subcontracts with subcontractors engaged in construction on the construction project. Alternate II (Jan 2024) . As prescribed in 22.505 (b)(3), substitute the following paragraphs (b) through (f) for paragraphs (b) through (f) of the basic clause: (b) When notified by the agency ( e.g. , by the notice of intent to place an order under 16.505 (b)(1)) that this order will use a project labor agreement, the Contractor shall negotiate or become a party to a project labor agreement with one or more labor organizations for the term of the order. The Contracting Officer shall require that an executed copy of the project labor agreement be submitted to the agency— (1) With the order offer; (2) Prior to award of the order; or (3) After award of the order. (c) The project labor agreement reached pursuant to this clause shall— (1) Bind the Contractor and subcontractors engaged in construction on the construction project to comply with the project labor agreement; (2) Allow all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collective bargaining agreements; (3) Contain guarantees against strikes, lockouts, and similar job disruptions; (4) Set forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the term of the project labor agreement; (5) Provide other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health; and (6) Fully conform to all statutes, regulations, Executive orders, and agency requirements. (d) Any project labor agreement reached pursuant to this clause does not change the terms of this contract or provide for any price adjustment by the Government. (e) The Contractor shall maintain in a current status throughout the life of the order any project labor agreement entered into pursuant to this clause. (f) Subcontracts . For each order that uses a project labor agreement, the Contractor shall— (1) Require subcontractors engaged in construction on the construction project to agree to any project labor agreement negotiated by the prime contractor pursuant to this clause; and (2) Include the substance of paragraphs (d) through (f) of this clause in subcontracts with subcontractors engaged in construction on the construction project.