By: Michael P. Sams, Esq., John G. Hofmann, Esq.

Governor Healey’s Executive Order Promotes Use of Project Labor Agreements (PLAs) for Certain State Construction Projects

Following closely on the heels of signing a major economic development bill, in November 2024 — which Kenney & Sams discussed here — on March 11, 2025, Governor Healey issued an Executive Order that goes further in promoting the use of Project Labor Agreements (PLAs) for certain, large-scale, public works construction projects.

This Executive Order aims to boost the use of PLAs, at least as to certain projects. The use of PLAs was promoted in the earlier economic development bill, though the particular section related to PLAs was not connected to a specific amendment of any existing statute or given any direct authorization to be enforced.

This Executive Order helps bridge that gap, for better or worse, depending on your view of PLAs. Now, for those state projects (and only state projects, not municipal projects) with an estimated construction cost of $35 million or more, it will be required that the use of PLAs on that project be considered, before requesting bids. Please don’t misunderstand — this does not mean that PLAs are required to be used on every state project costing $35 million or more. No, what is required is conducting the review — which asks IF the use of a PLA for a particular project will be in the “best interest” of the Commonwealth or the executive agency involved.

For determining the “best interest,” the reviewing authority will have to consider six factors. These are the same six factors included in the earlier economic development bill. They potentially pose a high bar to meet, though the standards will need to be interpreted by the courts over time via legal challenges to assess just how high (or low) the bar gets set. Some prior cases, such as John T. Callahan Sons, Inc. v. City of Malden (1999) and other PLA challenges, already provide analysis on some of these standards.

And under the Executive Order, when making the “best interest” determination, the state agency involved is also required to review and consider other factors, including: the major characteristics of the project; the prevailing wage rates; whether bidders will have sufficient capabilities regarding the labor force; and whether using a PLA will serve the “best interests” of the state as to “promoting … project goals. ”These “goals” include ensuring a “reliable, sufficient supply of qualified craft labor personnel for all trades and occupations,” promoting craft labor productivity, guaranteeing “labor harmony,” and promoting construction apprenticeship programs.

Having listed and described all the factors that go into making the determination, this part of the Executive Order concludes, in these exact words:

“If, and only if, the Executive Department agency makes a determination that the best interests of the Commonwealth or Executive Department agency would be furthered, it shall require the use of a Project Labor Agreement on that project and shall require every contractor or subcontractor engaged on the project to agree to become a party to that Project Labor Agreement, except where exclusions are permitted by statute or regulation.”

The Executive Order then lists twelve (12) requirements for what must be included in any PLA when the state agency has determined to use one on a given project.

The Executive Order also says that other public entities, agencies and municipalities are encouraged to conform to the Executive Order, highlighting the fact that this Executive Order only directly applies to the Commonwealth and state agencies.

The supposed reasons for promoting PLAs for certain large-scale state construction projects are included in the introductory “Whereas” paragraphs of the Executive Order. PLAs, it is said, “are often effective in preventing labor- and employment-related disputes because they provide structure and stability to large-scale public works projects,” and “can facilitate the timely and efficient completion of large-scale public works projects by making available a ready, reliable, and adequate supply of highly-trained and skilled craft workers, … and avoiding disruptions such as strikes, lockouts, or slowdowns over the life of the project.”

With this Executive Order, Governor Healey is building off of the policy change in the earlier economic development bill and providing a specific mechanism for increasing the use of PLAs in public construction projects. We will continue to keep you updated as the PLA law, and this Executive Order, move along.

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