While President Obama has said that cost and reliability are the policy goals behind the PO, the exclusion of so many non-unionized workers and employers suggests that such a PO could be used to promote union membership. While subtle, there is a difference between the National Labour Relations Act, which prohibits employers from cooling union participation, and the deliberate exclusion of non-unionized companies from all major construction contracts. In addition, federal organizations would likely not want to include these clauses in their contracts, as this would affect their results. The agencies have faced several legal challenges in their attempts to require bidders to include an APL in their applications. These challenges have largely succeeded in removing the PLA from the appeal. This leads me to believe that we will not see mandatory language in an update of the Obama-era executive order. The agreements have been used in the United States since the 1930s and were debated in the 1980s to be used for publicly funded projects. In these cases, government agencies have made the signing of LPAs a condition for working on taxpayer-funded projects. This type of PLA, known as a government-mandated PLA, is different from a PLA voluntarily entered into by contractors for public or private works – as permitted by the NLRA – as well as a PLA ordered by a private entity for a privately funded construction project. Executive orders issued since 1992 have impacted the use of state-mandated APLs for federal construction projects, and the most recent executive order issued by President Barack Obama in February 2009 encourages their use by federal agencies.
A number of groups oppose the use of LPAs and argue that the agreements discriminate against non-unionized contractors and do not improve efficiency or reduce the cost of construction projects. Studies on LPAs have mixed results, with some studies concluding that LPAs have positive effects, while others conclude that agreements increase costs and can have a negative impact on entrepreneurs and non-unionized workers. The National Construction Agreement aims to promote the efficiency of all construction processes. ensure the peaceful settlement of artisanal labour disputes without strikes or lockouts; and promote the rapid and cost-effective completion of the project. The agreement provides for standard working conditions; creates an instrument to maintain harmonious working relationships within the project; and ensures optimal productivity and eliminates various factors that contribute to construction delays. According to the document, the final cost of a project would generally be higher than the cost of bidding due to expenses incurred during construction. [8] In addition, a 2004 report by the Director of General Services for Contra Costa County, California, indicated that bids for five of the eight projects subject to the PLA were below the cost estimate for architects/engineers. [113] A 2004 report on the use of LPAs in Iowa indicates that the use of PLA increases the efficiency and profitability of construction projects. .