Overview
This section provides the foundational terminology for FAR Subpart 22.5, establishing specific criteria for construction activities, labor unions, and the monetary threshold for "large-scale" federal projects.
Key Rules
- Construction Scope: Broadly encompasses the construction, modernization, alteration, or repair of buildings, structures, highways, and other real property.
- Labor Organization: Specifically refers to unions representing building and construction employees as defined under 29 U.S.C. 152(5).
- Large-scale Construction Project: Establishes a definitive financial threshold of $35 million or more in total estimated cost to the Federal Government.
- Project Labor Agreement (PLA): Defined as a site-specific, pre-hire collective bargaining agreement that governs the terms and conditions of employment for a single construction project.
Practical Implications
- The $35 million threshold serves as the trigger for Executive Order mandates and agency requirements regarding the use of Project Labor Agreements.
- Contractors bidding on "large-scale" projects must be prepared to operate under the specific terms of a PLA, which may influence labor sourcing, dispute resolution, and cost structures.