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By Adrianna Lopez, Director of Labor Relations (Published in Monday Morning Quarterback December 8, 2025) Project Labor Agreements (PLAs) can feel like unfamiliar territory for contractors used to open-shop work. Before you submit that bid, it’s critical to understand the unique cost and compliance factors that come with PLAs, because overlooking them can turn a profitable job into a financial headache. Key Considerations Before You Bid: Workforce Restrictions: Under a PLA, your ability to use your own crew may be limited. PLAs often require hiring through union halls, which means you’ll need to plan for unfamiliar labor rules and practices. Union Work Rules & Pay Requirements: Union agreements can include provisions that surprise non-union contractors. For example, some trades require paying a full eight hours even if the worker only performs five hours of work. These rules can significantly impact labor cost projections. Double Benefit Contributions: If you already provide benefits to your employees, PLAs may still require contributions to union benefit funds… even if your workers never access those benefits. This ‘double payment’ is a common source of sticker shock for contractors new to PLAs. Administrative Burden: PLAs come with added paperwork: monthly fringe benefit reports, union contributions, and compliance documentation. Factor in the time and resources needed to manage these requirements. Potential Delays & Grievances: Union representatives have a formal role under PLAs, and grievances can arise. Be prepared for management time spent resolving disputes, which can delay progress and increase overhead. Bottom Line: PLAs aren’t impossible, but they require careful planning. Before bidding, review the agreement thoroughly, adjust your labor and benefit cost assumptions, and allocate resources for compliance and administration. A well-informed bid is your best defense against unexpected costs. Want to learn more? Contact me at alopez@agcsd.org