WASHINGTON, Jan. 20—The Associated Builders and Contractors (ABC) celebrated a recent ruling from the U.S. Court of Federal Claims that favored ABC members who challenged the Biden administration’s policy mandating union-favoring project labor agreements (PLAs) on federal construction projects valued at $35 million or more.

Judge Ryan T. Holte’s decision, issued on Jan. 19, addressed 12 bid protests from ABC member contractors against PLA mandates included in solicitations from three federal agencies. These mandates stemmed from a Federal Acquisition Regulatory Council rule, effective Jan. 22, 2024, implementing Executive Order 14063, signed by former President Joe Biden.

The construction industry, taxpayer advocates, and lawmakers have criticized this policy for inflating construction costs and prioritizing unionized firms at the expense of open competition and taxpayer dollars.

“ABC and its federal contractor members are ecstatic that the judicial system has delivered justice for American taxpayers and the 90% of the U.S. construction industry workforce that is nonunion,” said Ben Brubeck, ABC Vice President of Regulatory, Labor, and State Affairs. “ABC members were harmed by former President Biden’s costly executive overreach, which violates federal laws and rewards special interests at the expense of fair and open competition.”

Brubeck highlighted that evidence presented during the Jan. 16 oral arguments underscored ABC’s concerns. “Damning evidence procured through market research conducted by several federal agencies was raised in the case’s Jan. 16 oral argument and corroborated plaintiffs’ complaints and ABC’s long-standing concerns,” he said.

Brubeck further explained how mandated PLAs negatively impact the industry. “ABC has testified before Congress that, when mandated by government, PLAs increase construction costs by an estimated 12% to 20%, reduce competition from qualified contractors and their employees, steal money from the paychecks of token nonunion workers permitted on PLA projects and exacerbate the construction industry’s worker shortage,” he said.

He added, “Typical PLA mandates discourage competition from some of the best bidders by forcing contractors to sign special union collective bargaining agreements, hire workers from union halls and apprenticeship programs and accept compulsory union representation on behalf of any members of their existing workforces. This exposes those workers to union wage theft of up to 34% of their compensation unless they join a union and vest in union benefits plans.”

ABC reiterated its commitment to advocating for fairer practices. “ABC will continue to advocate for inclusive solutions that result in cost savings, more jobs and more opportunities for all qualified small, minority- and women-owned businesses and all American workers in the construction industry,” Brubeck said.

However, he noted that challenges remain. “This lawsuit did not address additional Biden policies pushing PLAs on federally assisted infrastructure projects procured by local and state governments and private developers, so the fight will go on.”

In another effort to restore open competition, ABC and the Build America Local coalition sent a letter to former President Donald Trump on Jan. 9, urging an executive order to remove PLA mandates. The coalition estimated such a move could save taxpayers $10 billion annually.

Separately, on March 28, 2024, ABC and its Florida First Coast chapter filed a federal lawsuit to block Biden’s PLA rule for federal construction projects, asserting that it oversteps executive authority and violates the U.S. Constitution, the First Amendment, and the Administrative Procedure Act. The case awaits a decision on the preliminary injunction and the broader suit.

ABC members, who secured 54% of the $205.56 billion in federal contracts worth $35 million or more between fiscal years 2009 and 2023, have a proven track record of delivering projects safely, on time, and on budget—without mandated PLAs.

Additional details can be found at abc.org/bidenplafaqs and BuildAmericaLocal.com.

Attorneys Dirk Haire of Fox Rothschild LLP and Jake Scott of Smith Currie Oles LLP represented the contractor plaintiffs in the case MVL USA Inc., et al., v. United States, Case No. 24-1057. An unsealed version of the ruling is expected to be released to the public this week.