AN ACT RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES (Amends the process for creating and governing project labor agreements (“PLA”).)

S2735

2026 -- S 2735
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LC005116
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

Introduced By:
Senators Burke, Bissaillon, Thompson, Famiglietti, Patalano, Raptakis,
and Tikoian

Date Introduced:
February 27, 2026

Referred To:
Senate Labor & Gaming
It is enacted by the General Assembly as follows:
1
SECTION 1. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby
2
amended by adding thereto the following section:
3

37-2-24.1. Project labor agreements.
4

(a) Legislative purpose. The purpose of this section is to protect investments in public
5
works projects, while promoting successful construction delivery and offsetting performance risks
6
through the use of project labor agreements (PLAs”) in accordance with the requirements of this
7
section.
8

(b) Legislative findings. The general assembly recognizes and finds that:
9

(1) Capital investments in public works projects are among the state’s largest budget
10
expenditures and construction contracts executed in connection with these projects present
11
substantial risks of cost overruns, schedule delays and other performance problems as the result of
12
weather, material costs, unforeseen site conditions and other factors that cannot be controlled,
13
which underscores the need to maximize effective management of factors that can be controlled.
14

(2) One factor that can be reasonably controlled in public works projects is the sourcing
15
and management of craft labor supply, which is crucial because construction is a highly skilled,
16
labor-intensive industry in which labor cost generally represents one-third (1/3) or more of the total
17
project budget. The importance of this factor is further heightened because unlike other sectors,
18
employers in the construction industry generally do not have a permanent workforce, and craft
19
labor demand fluctuates from project to project and during the course of a single project in

1
accordance with varying schedules and milestones. In addition, capital projects require the reliable
2
deployment of dozens to hundreds of skilled workers and the careful coordination of multiple prime
3
contractors, trade contractors, and subcontractors employing multiple construction trades or crafts
4
possessing individual, specialized training and skills. These challenges are significantly magnified
5
on large-scale construction projects.
6

(3) Substantial and growing evidence demonstrates that PLAs, which are pre-hire
7
collective bargaining agreements specially authorized under the Section 8(f) of the National Labor
8
Relations Act (29 U.S.C. §158(f)) to give construction employers the ability to address these unique
9
challenges, provide an effective mechanism for ensuring a reliable and adequate supply of qualified
10
craft labor required for capital projects.
11

(4) PLAs have been found to meet the challenges of the construction industry principally
12
because they give project owners and contractors the ability to ensure that qualified craft labor
13
resources will be sourced through building trades unions, which rely on both high quality registered
14
apprenticeship training programs that generate workers with known, certified skills and safety
15
qualifications, as well as hiring halls systems and other unique dispatch procedures to deploy
16
qualified craft labor personnel in accordance with project demand and fluctuating scheduling needs.
17
Additionally, PLAs benefit project owners and contractors by securing craft labor personnel before
18
construction is commenced in a pre-hire context, to ensure reliable and adequate craft labor supply
19
in advance of the project, which also allows for more predictable and accurate labor cost estimates
20
and overall bid or proposal prices.
21

(5) PLAs also promote successful project delivery by establishing uniform project terms
22
and conditions of employment for all labor and contractors used on the project, no-strike/no lockout
23
provisions, and other features that facilitate effective and timely project delivery. These agreements
24
have also been recognized by federal agencies and other project owners for advantages that include
25
promoting safety, preventing schedule disruptions from high labor turnover, and facilitating
26
effective workforce development, which is critically needed to address industry skill shortages and
27
to expand the pool of qualified labor required for future public works projects that are vital to new
28
infrastructure and capital building programs. This facilitation is also important because the New
29
England region is encountering acute, persistent skill shortages in the construction trades, as
30
evidenced by reports showing that, due to an aging workforce and a decline in vocational training,
31
contractors in the region are struggling to hire qualified labor. Further, the ability of PLAs to
32
promote workforce development can also be substantially strengthened when PLAs include
33
specific apprentice utilization provisions.
34

(6) The effectiveness of PLAs in facilitating reliable craft labor staffing, as well as

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1
workforce development, is demonstrated by their long, successful track record both in Rhode Island
2
and across the country. While used for many decades throughout New England as a planning and
3
project delivery tool, PLAs have been increasingly and extensively used in Rhode Island for more
4
than twenty (20) years by federal, state, and local government agencies, institutions of higher
5
learning, schools, and leading corporations throughout the private sector. These agreements have
6
helped promote the successful delivery of over one hundred (100) major capital projects in Rhode
7
Island, collectively valued at more than ten billion dollars ($10,000,000,000), and have resulted in
8
the continuous investment of millions of dollars per year into the highest performing apprenticeship
9
programs in the state. PLAs in Rhode Island have been relied upon to build airports, power plants,
10
manufacturing and industrial facilities, laboratories, hospitals, hotels, casinos, schools, universities,
11
government buildings and infrastructure projects. Over fifty (50) of these PLA projects were for
12
large-scale public works projects, representing the vast majority of public construction in Rhode
13
Island. Given this trend, PLA construction has become a market expectation for major public works
14
across the state.
15

(7) In Rhode Island’s public sector, there have been over fifty (50) independent, objective
16
feasibility studies conducted over twenty (20) plus years that examined the application of PLAs on
17
individual large-scale public works projects, all of which uniformly found that PLAs promote a
18
reliable supply of qualified craft labor needed to meet construction schedules and facilitate timely
19
project completion, while ensuring compliance with the goals and objectives of chapter 2 of title
20
37 ("state purchases") including fair and effective competition. Over the course of this PLA history,
21
these various studies often reported similar findings since large-scale construction projects
22
routinely present the same basic craft labor supply challenges, and because the advantages PLAs
23
provide to such projects are also generally the same. Given the long, consistent record of PLAs in
24
promoting the successful delivery of Rhode Island public works projects, such studies are no longer
25
necessary and ultimately impose unnecessary cost and delays on state and local government
26
contracting agencies.
27

(8) The nation’s experience with PLA construction mirrors Rhode Island’s record. For
28
nearly a century, these agreements have been relied upon at all levels of government to promote
29
reliable project staffing on crucial infrastructure systems and other public works projects and are
30
utilized to an even greater extent by private corporations in virtually all major industries across the
31
economy. The federal government has recognized that PLAs have been used in all fifty (50) states,
32
and the umbrella organization for the nation’s construction unions, North American Building
33
Trades Unions (NABTU), reported that there was approximately two hundred fourteen billion
34
dollars ($214,000,000,000) in PLAs from January 2021 to July 2022.

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1

(9) Due to the ability of these agreements to promote reliable craft labor staffing, foster
2
effective workforce development, and offset construction skill shortages, they have been promoted
3
by the U.S. Departments of Energy, Commerce, Treasury, Education, and Labor in both direct
4
federal construction and federally assisted construction programs. Since 2022, PLAs have been
5
mandated on large-scale federal projects pursuant to Executive Order 14063 (“use of project labor
6
agreements for federal construction projects”).
7

(10) The ability of PLAs to ensure reliable project staffing, and thereby promote cost-
8
efficient, timely performance, while maintaining full and open competition without regard to a
9
contractor’s union or non-union affiliation, that attracts more bidders and lower bid costs, has been
10
proven by substantial industry research, including reports from federal agencies, universities, non-
11
profit organizations, and construction management firms. In addition, a groundbreaking study by a
12
leading industry consulting firm produced a comprehensive study showing that, due to substantial
13
productivity advantages driven by the two (2) central advantages of PLAs -- strong apprenticeship
14
training and reliable hiring hall deployment systems -- craft labor supplied through building trade
15
unions resulted in lower in-place construction costs and significantly fewer performance risks
16

(11) In addition to providing substantial project delivery benefits for public works
17
contracts, PLAs are designed to ensure fair and open competition and are, therefore, consistent with
18
the goals of the provisions of § 37-2-2.
19

(c) Definitions. As used in this section, the following words and phrases shall have the
20
following meanings, unless the context clearly indicates otherwise:
21

(1) “Apprenticeship agreement” means an agreement between an apprentice and an
22
apprenticeship program sponsor or its agency that includes the terms and conditions of the
23
employment and training of the apprentice pursuant to 29 CFR §§ 29.2. and 29.7.
24

(2) “Apprenticeship program” means an apprenticeship program that includes all terms and
25
conditions for the qualification, recruitment, selection, employment, and training of apprentices in
26
accordance with U.S. Department of Labor regulations, 29 CFR § 29.2.
27

(3) “Construction labor organization” means a labor organization in the construction
28
industry that:
29

(i) Operates a bona fide apprenticeship program in the trade or craft in which the union
30
provides construction services that is registered with and approved by the U.S. Department of Labor
31
or a state apprenticeship agency pursuant to 29 CFR § 29.3; and
32

(ii) Operates a hiring hall or other job referral system in the trade or craft in which the
33
union provides construction services to deploy craft labor in accordance with project staffing needs.
34

(4) “Craft labor” means workers employed on a public works project subject to this section

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1
in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter
2
13 of this title (“labor and payment of debts by contractors”).
3

(5) “Large-scale state public works project” means a project undertaken pursuant to a state
4
construction contract valued at twenty-five million dollars ($25,000,000) or more.
5

(6) “Lead contractor” means the general contractor, prime contractor, construction
6
manager, construction manager at-risk, design-builder, or other entity that enters a construction
7
contract with a state contracting agency or local government contracting agency.
8

(7) “Project contractors” means the lead contractor and all prime contractors, trade
9
contractors, specialty contractors, and other subcontractors at any tier used on a project.
10

(8) “Project labor agreement” or “PLA” means a pre-hire collective bargaining agreement
11
with four (4) or more labor organizations in the construction industry that establishes the terms and
12
conditions of employment for a specific construction project and is an agreement described in 29
13
U.S.C. § 158(f).
14

(9) “Project staffing plan” means a craft labor project staffing plan used by project
15
contractors in the absence of a PLA to ensure a reliable and adequate supply of qualified craft labor
16
sufficient to meet the project’s needs.
17

(10) “State contracting agency” means a state agency, quasi-state agency, university,
18
college, or other entity or instrumentality undertaking construction contracts, but excludes the
19
Rhode Island department of transportation.
20

(11) “State public works project” means a project undertaken pursuant to a construction
21
contract by a state contracting agency.
22

(d) Project labor agreement policy.
23

(1) State public works projects. State contracting agencies may, at their discretion, include
24
PLA requirements in construction contracts on any appropriate project; provided such agreements
25
are used in compliance with this section and the PLA includes the mandatory provisions specified
26
in subsection (e) of this section.
27

(2) Unless exempted in accordance with this section, PLAs shall be used on large-scale
28
state public works projects to promote the reliable, adequate supply of qualified craft labor, protect
29
capital investments, and offset performance risks. Incorporation of PLAs in bid or proposal
30
specifications and construction contracts shall be administered in compliance with the requirements
31
of this section.
32

(e) Mandatory provisions to be included in any public works PLA. PLAs used under this
33
section shall include the following provisions:
34

(1) Bind all contractors and subcontractors working on the state or local government public

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1
works project through the inclusion of appropriate specifications in all relevant solicitation
2
provisions and contract documents;
3

(2) Allow all contractors and subcontractors on the construction project to compete for
4
contracts and subcontracts without regard to whether they are otherwise parties to collective
5
bargaining agreements;
6

(3) Contain guarantees against strikes, lockouts, and similar job disruptions;
7

(4) Set forth effective, prompt, and mutually binding procedures for resolving labor
8
disputes arising during the term of the project;
9

(5) Include a requirement that at least fifteen percent (15%) of the total project workforce
10
shall consist of registered apprentices covered by apprenticeship agreements with applicable
11
apprenticeship programs; and
12

(6) Permit the inclusion of additional mechanisms for labor-management cooperation on
13
matters of mutual interest and concern, including health and safety of the workforce and compliance
14
with applicable state statutes and regulations.
15

(f) Large-scale state public works projects. There shall be a presumption that PLAs will
16
substantially benefit large-scale state public works projects, unless a project is exempted in
17
accordance with the following requirements:
18

(1) If a PLA is not used, the state contracting agency responsible for the project shall issue
19
a written determination at least ninety days (90) prior to the invitation for bids or request for
20
proposals providing the grounds for its finding that a PLA will not promote an adequate supply of
21
qualified craft labor required for the project.
22

(2) This determination shall be made by the chief procurement officer or an equivalent
23
senior official of the state contracting agency and provide a detailed explanation of the reasons
24
supporting the determination and shall be reviewed by the agency’s highest ranking official, who
25
shall confirm or reverse the determination in a written review decision.
26

(3) For any large-scale state public works project for which a PLA is not used, the state
27
contracting agency shall require bidders or offerors to submit a certified project craft labor staffing
28
plan, which shall be a material term of the construction contract, that provides information
29
demonstrating the staffing capabilities of the lead contractor and all other project contractors used
30
on the project, including:
31

(i) The specific apprenticeship programs or other training programs used to ensure
32
adequate and verifiable skills for all craft labor classifications needed for the project; and
33

(ii) The sources that will be relied upon to recruit and deploy qualified craft labor in
34
accordance with project scheduling requirements.

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1

(4) The project craft labor staffing plan, which shall constitute a mandatory condition of
2
contractor responsibility, shall be reviewed and approved by the state contracting agency to ensure
3
it provides reasonably strong assurances that the project contractors will ensure a reliable and
4
adequate supply of qualified craft labor required for the project.
5
SECTION 2. Chapter 45-55 of the General Laws entitled "Award of Municipal Contracts"
6
is hereby amended by adding thereto the following section:
7

45-55-11.1. Project labor agreements.
8

(a) Legislative purpose. The purpose of this section is to protect investments in public
9
works projects, while promoting successful construction delivery and offsetting performance risks
10
through the use of project labor agreements (“PLAs”) in accordance with the requirements of this
11
section.
12

(b) Use of PLAs by local government. This section shall be administered in coordination
13
with the provisions of § 37-2-24.1. The legislative findings, and other provisions of § 37-2-24.1, as
14
applicable, are incorporated herein by reference.
15

(c) Definitions. As used in this section, the following words and phrases shall have the
16
following meanings, unless the context clearly indicates otherwise:
17

(1) “Apprenticeship agreement” means an agreement between an apprentice and an
18
apprenticeship program sponsor or its agency that includes the terms and conditions of the
19
employment and training of the apprentice pursuant to 29 CFR §§ 29.2. and 29.7.
20

(2) “Apprenticeship program” means an apprenticeship program that includes all terms and
21
conditions for the qualification, recruitment, selection, employment, and training of apprentices in
22
accordance with U.S. Department of Labor regulations, 29 CFR § 29.2.
23

(3) “Construction labor organization” means a labor organization in the construction
24
industry that:
25

(i) Operates a bona fide apprenticeship program in the trade or craft in which the union
26
provides construction services that is registered with and approved by the U.S. Department of Labor
27
or a state apprenticeship agency pursuant to 29 CFR § 29.3; and
28

(ii) Operates a hiring hall or other job referral system in the trade or craft in which the
29
union provides construction services to deploy craft labor in accordance with project staffing needs.
30

(4) “Craft labor” means workers employed on a public works project subject to this section
31
in all trades or crafts that must be paid state prevailing wages pursuant to the provisions of chapter
32
13 of title 37 (“labor and payment of debts by contractors”).
33

(5) “Large-scale state-assisted public works project” means a public works project
34
undertaken pursuant to a construction contract by a local government contracting agency valued at

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1
twenty-five million dollars ($25,000,000) or more in actual construction costs for which the state
2
provides thirty-five percent (35%) or more of the construction budget for the project, excluding
3
design, engineering, or other non-construction costs.
4

(6) “Lead contractor” means the general contractor, prime contractor, construction
5
manager, construction manager at-risk, design-builder, or other entity that enters a construction
6
contract with a state contracting agency or local government contracting agency.
7

(7) “Local government contracting agency” means a contracting agency of a municipality,
8
town, city, local education agency, school committee, school district, or other political subdivision
9
of the state undertaking construction contracts.
10

(8) “Local government public works project” means a project undertaken pursuant to a
11
construction contract by a local government contracting agency.
12

(9) “Project contractors” means the lead contractor and all prime contractors, trade
13
contractors, specialty contractors, and other subcontractors at any tier used on a project.
14

(10) “Project labor agreement” or “PLA” means a pre-hire collective bargaining agreement
15
with four (4) or more labor organizations in the construction industry that establishes the terms and
16
conditions of employment for a specific construction project and is an agreement described in 29
17
U.S.C. §158(f).
18

(11) “Project staffing plan” means a craft labor project staffing plan used by project
19
contractors in the absence of a PLA to ensure a reliable and adequate supply of qualified craft labor
20
sufficient to meet the project’s needs.
21

(d) Project labor agreement policy.
22

(1) Local government contracting agencies may, at their discretion, include PLA
23
requirements in construction contracts on any appropriate project; provided such agreements are
24
used in compliance with this section and the PLA includes the mandatory provisions specified in
25
subsection (e) of this section.
26

(2) Unless exempted in accordance with this section, PLAs shall be used on large-scale
27
state-assisted public works projects to promote the reliable, adequate supply of qualified craft labor,
28
protect capital investments, and offset performance risks. Incorporation of PLAs in bid or proposal
29
specifications and construction contracts shall be administered in compliance with the requirements
30
of this section.
31

(e) Mandatory provisions to be included in any public works PLA. PLAs used under this
32
section shall include the following provisions:
33

(1) Bind all contractors and subcontractors working on the state or local government public
34
works project through the inclusion of appropriate specifications in all relevant solicitation

LC005116 - Page 8 of 11
1
provisions and contract documents;
2

(2) Allow all contractors and subcontractors on the construction project to compete for
3
contracts and subcontracts without regard to whether they are otherwise parties to collective
4
bargaining agreements;
5

(3) Contain guarantees against strikes, lockouts, and similar job disruptions;
6

(4) Set forth effective, prompt, and mutually binding procedures for resolving labor
7
disputes arising during the term of the project;
8

(5) Include a requirement that at least fifteen percent (15%) of the total project workforce
9
shall consist of registered apprentices covered by apprenticeship agreements with applicable
10
apprenticeship programs; and
11

(6) Permit the inclusion of additional mechanisms for labor-management cooperation on
12
matters of mutual interest and concern, including health and safety of the workforce and compliance
13
with applicable state and local laws and regulations.
14

(f) Large-scale state-assisted public works projects. As a condition of receiving state
15
assistance for a state-assisted public works project, the local government contracting agency
16
responsible for the project shall require the use of a PLA unless a project is determined to be exempt
17
in accordance with the following requirements:
18

(1) If a PLA is not used, the state contracting agency responsible for the project shall issue
19
a written determination at least ninety days (90) prior to the invitation for bids or request for
20
proposals, providing the grounds for its finding that a PLA will not promote an adequate supply of
21
qualified craft labor required for the project.
22

(2) For any large-scale state-assisted public works project for which a PLA is not used, the
23
local government contracting agency shall require bidders or offerors to submit a certified project
24
craft labor staffing plan, which shall be a material term of the construction contract, that provides
25
information demonstrating the staffing capabilities of the lead contractor and all other project
26
contractors, including:
27

(i) The specific apprenticeship programs or other training programs used to ensure
28
adequate and verifiable skills for all craft labor classifications needed for the project; and
29

(ii) The sources that will be relied upon to recruit and deploy qualified craft labor in
30
accordance with project scheduling requirements.
31

(3) The project craft labor staffing plan shall be reviewed and approved by the local
32
government contracting agency to ensure it provides reasonably strong assurances that the project
33
contractors will provide sufficient craft labor resources required for the project.
34
SECTION 3. Severability. If any provision of these sections or their application to any

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1
person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality
2
shall not affect other provisions or applications of these sections which can be given effect without
3
the invalid or unconstitutional provision or application, and to this end, the provisions of these
4
sections are declared to be severable.
5
SECTION 4. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES
***
1
This act would amend the process for creating and governing project labor agreements
2
(“PLAs”) with which to comply. The act would provide that contracting agencies could, at their
3
discretion, include PLA requirements in construction contracts on any appropriate project. This act
4
would further provide that PLAs would need to include certain mandatory provisions set forth in
5
the act. This act would also provide that PLAs would be used on large-scale state public works
6
projects to promote adequate supply of qualified craft labor, protect capital investments, and offset
7
performance risks.
8
This act would take effect upon passage.
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