ARTICLE
By Adrianna Lopez, Director of Labor Relations (Published in Monday Morning Quarterback March 16, 2026) Let’s be honest: Few three-letter acronyms spark more eye-twitching in the construction world than PLA. For a select few (think policymakers), Project Labor Agreements (PLAs) are seen as a magical shield, guaranteeing skilled local workers, orderly job sites, and projects delivered on time and on budget. But for open-shop contractors, the reality often feels far less enchanted and much more like navigating a maze full of unexpected obstacles and traps around every corner. Whether you’re open-shop, union-signatory, PLA-curious, or PLA-skeptical, here’s the truth: PLAs aren’t going anywhere. They’re being used more, and discussed more. Not to mention: Many of the bills currently being rushed through for approval before the end of Governor Newsom’s term contain even bigger expansions of PLAs.? So, now that I have your attention, let’s dive in to the unfortunate reality of PLAs in the construction space, particularly in public works, but potentially expanding into the private sector, which is the reality that contractors will soon have to face.? If you’ve been reading PLA Playbook, you should have a strong understanding that a PLA is a pre-hire collective bargaining agreement specific to one project, one contractor, or in the public space, usually specific to an Awarding Body (think SANDAG, MTS, etc.). It doesn’t automatically unionize your company, require you to fire your workforce, or mean Big Labor is taking over your office printer. It does mean you’re agreeing to operate under certain labor conditions for that project, and most importantly, it mandates use of Union workers and payment into Union Trust Funds. Why Some Contractors Like PLAs Some contractors appreciate PLAs for the predictability, labor stability, and the ability to hire workers in a challenging labor market. They also like the fact that because many contractors are PLA averse, the bidding pool tends to be much smaller, resulting in a steady flow of available work and opportunities. Why Some Contractors Do Not Open-shop contractors often cite increased costs, hiring restrictions, administrative complexity, and jurisdictional rules as concerns. For them, a PLA can feel like being handed a recipe you didn’t write, working in a kitchen you don’t control, and still being expected to cover the cost of the meal. The Middle Ground The contractors who succeed under PLAs aren’t the ones who fight them; they’re the ones who understand them. You don’t have to change your identity or join a union, but you do need to understand dispatch rules, workforce limitations, potential increased costs, and how to respond when disputes arise. Final Whistle Sure, we can battle PLAs endlessly... but in this region, PLAs aren’t just surviving, they’re multiplying. Contractors should expect more, and I mean many more, of them on the horizon. That’s just the industry we work in, and the challenge we have to face. But as your coach, I’m here to help you strategize, educate, and help you find success should you wish to explore the PLA construction space. Disclaimer: Information and advice provided by AGC San Diego staff is general and not a substitute for legal counsel. Before applying any recommendations or policies to your business, consult a licensed attorney familiar with your specific circumstances.
By Adrianna Lopez, Director of Labor Relations (Published in Monday Morning Quarterback March 16, 2026)
Let’s be honest: Few three-letter acronyms spark more eye-twitching in the construction world than PLA. For a select few (think policymakers), Project Labor Agreements (PLAs) are seen as a magical shield, guaranteeing skilled local workers, orderly job sites, and projects delivered on time and on budget. But for open-shop contractors, the reality often feels far less enchanted and much more like navigating a maze full of unexpected obstacles and traps around every corner.
Whether you’re open-shop, union-signatory, PLA-curious, or PLA-skeptical, here’s the truth: PLAs aren’t going anywhere. They’re being used more, and discussed more. Not to mention: Many of the bills currently being rushed through for approval before the end of Governor Newsom’s term contain even bigger expansions of PLAs.?
So, now that I have your attention, let’s dive in to the unfortunate reality of PLAs in the construction space, particularly in public works, but potentially expanding into the private sector, which is the reality that contractors will soon have to face.?
If you’ve been reading PLA Playbook, you should have a strong understanding that a PLA is a pre-hire collective bargaining agreement specific to one project, one contractor, or in the public space, usually specific to an Awarding Body (think SANDAG, MTS, etc.). It doesn’t automatically unionize your company, require you to fire your workforce, or mean Big Labor is taking over your office printer. It does mean you’re agreeing to operate under certain labor conditions for that project, and most importantly, it mandates use of Union workers and payment into Union Trust Funds.
Why Some Contractors Like PLAs Some contractors appreciate PLAs for the predictability, labor stability, and the ability to hire workers in a challenging labor market. They also like the fact that because many contractors are PLA averse, the bidding pool tends to be much smaller, resulting in a steady flow of available work and opportunities. Why Some Contractors Do Not Open-shop contractors often cite increased costs, hiring restrictions, administrative complexity, and jurisdictional rules as concerns. For them, a PLA can feel like being handed a recipe you didn’t write, working in a kitchen you don’t control, and still being expected to cover the cost of the meal. The Middle Ground The contractors who succeed under PLAs aren’t the ones who fight them; they’re the ones who understand them. You don’t have to change your identity or join a union, but you do need to understand dispatch rules, workforce limitations, potential increased costs, and how to respond when disputes arise. Final Whistle Sure, we can battle PLAs endlessly... but in this region, PLAs aren’t just surviving, they’re multiplying. Contractors should expect more, and I mean many more, of them on the horizon. That’s just the industry we work in, and the challenge we have to face. But as your coach, I’m here to help you strategize, educate, and help you find success should you wish to explore the PLA construction space.
Disclaimer: Information and advice provided by AGC San Diego staff is general and not a substitute for legal counsel. Before applying any recommendations or policies to your business, consult a licensed attorney familiar with your specific circumstances.