Last week, the U.S. Court of Federal Claims ruled in favor of Associated Builders and Contractors members who challenged a Biden Administration policy requiring that project labor agreements be tied to federal construction projects of $35 million or more.
The policy was criticized by the construction industry, taxpayer watchdogs and lawmakers for inflating construction costs and steering contracts to union labor at the expense of taxpayers and federal laws requiring fair and open competition.
Prior to the ruling, ABC testified before Congress stating that PLAs, when mandated by government, increase construction costs by an estimated 12 percent to 20 percent, reduce competition, reduce nonunion worker wagers, and exacerbate the construction industry’s worker shortage.
In response to the ruling, ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck said: “ABC and its federal contractor members are ecstatic that the judicial system has delivered justice for American taxpayers and the 90 percent of the U.S. construction industry workforce that is nonunion. ABC members were harmed by former President Biden’s costly executive overreach, which violates federal laws and rewards special interests at the expense of fair and open competition. ABC will continue to advocate for inclusive solutions that result in cost savings, more jobs and more opportunities for all qualified small, minority- and women-owned businesses and all American workers in the construction industry.”