Governor Healey Signs Executive Order to Ensure Safe, On Time, and On Budget Construction Projects

Governor Healey Signs Executive Order to Ensure Safe, On Time, and On Budget Construction Projects  

Order signed at Mass Building Trades Convention promotes use of project labor agreements by state agencies for large public works projects 

SPRINGFIELD – Today, at the Massachusetts Building Trades 106^th Annual Convention, Governor Maura Healey signed an Executive Order to promote the use of project labor agreements (PLAs) by state agencies for large public works projects. The order aims to ensure that construction projects are successfully completed on-time and within budget, while increasing access to good-paying jobs for workers of all backgrounds. 

A PLA is a collective bargaining agreement that is executed between contractors and labor organizations that establishes the terms and conditions of employment for all contractors, subcontractors, and craft labor employees performing work on a specific construction project. PLAs help to deliver high quality jobs for a diverse workforce and maintain competitive costs and project timelines. Studies have also found that PLAs do not add costs to construction projects, and in fact lower them. A recent analysis of a similar policy in Illinois found that PLAs increased competition and helped lower costs for taxpayers. 

The Governor’s order requires executive department agencies to review public works construction projects with estimated construction costs over $35 million to determine if a PLA is in the best interest of the projects, workers and community. That analysis will take into account factors such as: scope, complexity, proposed schedule, site conditions, and the size and nature of the construction workforce required. 

“There are so many critical construction projects underway all across the state – upgrading our roads and bridges, improving infrastructure for small businesses and more,” said Governor Maura Healey. “We know that it’s really important that these projects are set up for success. This means ensuring that contractors have a trained and ready workforce to turn to and a plan for meeting deadlines, staying within budget and keeping everyone safe. In many cases, PLAs can help make that happen, while promoting good job opportunities for workers of all backgrounds, including veterans, women and minorities.” 

“Project labor agreements have been proven to result in successful construction projects in the public and private sectors – from the new Holyoke Veterans Home to Gillette Stadium and TD Garden,” said Lieutenant Governor Kim Driscoll. “We’re proud to take this action today that will make sure our agencies are paying close attention to ways in which they can maximize the success of their projects while supporting our incredible, diverse workforce in Massachusetts.” 

This Executive Order provides a framework for adhering to a section of the Mass Leads economic development bill passed by the Legislature and signed by Governor Healey last year, which says that agencies may require a PLA on public works construction projects when doing so is in the best interests of Massachusetts. The order does not require a PLA for any construction project. It also does not limit any project to only union labor. Bids would be enlisted from union and non-union companies, opening opportunities for contractors to partner with a wide network of subcontractors to meet workforce needs.   

“Governor Healey’s Executive Order signals the use of PLAs for complex, large public construction projects when in the best interest of the Commonwealth—a workforce strategy that will generate good wages and benefits for Massachusetts’ construction industry and workers,” said Secretary of Labor and Workforce Development Lauren Jones. “Our administration looks forward to leveraging this as a tool, when applicable, complemented by efforts to build a more diverse pool of apprentices and reduce barriers to attract more women and people of color as we work collaboratively with the industry to grow the workforce.” 

This action is part of the Healey-Driscoll Administration’s commitment to creating opportunities for good-paying jobs for all workers, including union members, veterans, women and minorities. This order builds on actions Governor Healey took in 2024 to create opportunities for more firms and people to work on state construction projects. Last year, Governor Healey signed an Executive Order creating a Public Construction Advisory Council to identify barriers to the participation of small, emerging, and diverse businesses on public construction projects. She also signed an Executive Order to increase the participation of women and underrepresented groups in construction.