It commonly includes guarantees against strikes and lockouts and binding dispute-resolution procedures, aimed at keeping a multi-trade job on schedule. On federal work, Executive Order 14063 and the implementing FAR rule require a PLA on “large-scale” federal construction projects (those estimated at $35 million or more) unless a written exception applies. Agencies may also require them on smaller jobs. State and local rules vary, and some states restrict PLAs.
A PLA generally binds every contractor and subcontractor on the project, whether or not they are otherwise union. It typically routes workers through agreed hiring procedures while honoring local wage and benefit schedules. Non-union firms can usually still bid and win, but they need to price the agreement's dispatch rules, benefit contributions, and work practices. Catching a PLA requirement early changes the cost picture. Nonlinear's pursuit screening flags PLA requirements in a solicitation so contractors can factor the labor terms into their bid/no-bid call.
