On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Projects on Jan 16, 2017.
On January 4, 2017, the Associated Builders and Contractors, Associated General Contractors of America, National Association of Home Builders, U.S. Chamber of Commerce and eight other construction industry groups sent a letter to president-elect Donald Trump asking that he rescind President Barack Obama’s Executive Order 13502, which encourages federal agencies to require project labor agreements (PLAs) on large-scale projects. In the letter, the coalition of construction industry groups advocate that PLAs raise the cost of public projects by 12%-18% resulting in “fewer infrastructure improvements and reduced construction industry job creation.” The coalition further state that a PLA “stifles competition and prevents taxpayers from receiving the best possible construction product at the best possible price.” In the letter, the coalition insinuate that rescinding the mandate will increase infrastructure improvements and job creation. The building trades union have advocated the use of PLAs on public projects, so it remains to be seen whether they would reach out to president-elect Donald Trump prior to his inauguration asking that he save Executive Order 13502.