CTB Approves Balanced Guidelines on Project Labor Agreements: What It Means for Virginia’s Highway a

The Commonwealth Transportation Board (CTB) has adopted new guidelines governing the use of Project Labor Agreements (PLAs) on state-funded transportation projects – an important step toward balancing flexibility, fairness, and accountability in how Virginia delivers its highway and infrastructure program. 
 
The new policy, adopted in November 2025, establishes a structured and transparent process for evaluating when the use of a PLA may be appropriate on projects funded in whole or in part with state or federal dollars administered by the Virginia Department of Transportation (VDOT) or the Department of Rail and Public Transportation (DRPT). 

For contractors, design consultants, and local project sponsors, the policy provides much-needed clarity: PLAs are neither mandated nor prohibited. Instead, their use must be justified on a project-by-project basis through measurable benefits such as cost savings, improved efficiency, enhanced safety, or reduced labor risk. 
 
Defining a PLA – and the Framework for Use 
Under Virginia Code § 2.2-4321.2, a Project Labor Agreement is a pre-hire collective bargaining agreement with one or more labor organizations that sets employment terms for a specific public works project. The CTB’s new policy aligns with that statute while respecting Virginia’s long-standing Right to Work law. 
 
The guidelines make clear that a PLA may only be considered if an Independent Third-Party evaluation demonstrates that it will “significantly benefit the project and advance the interests of the Public and the Commonwealth.” To meet that standard, the Project Sponsor – whether VDOT, DRPT, or another public entity – must submit detailed documentation showing: 

• Quantifiable cost savings resulting from the PLA;
• Evidence of increased project effectiveness and efficiency; and 
• Clear quality, safety, and timeliness benefits. 

The CTB will evaluate each request on these criteria and approve the use of a PLA only if a “clear and compelling case” is made. 
 
Protecting Fair Competition and Virginia’s Workforce 
A critical component of the policy ensures that Virginia’s Right to Work protections remain intact. The CTB explicitly requires proof that no Virginia worker will be denied employment based on union or non-union status. It also requires consideration of how a PLA might affect competition, both positively and negatively, among contractors and subcontractors, including small, women-owned, and disadvantaged business enterprises. 

For Virginia-based contractors and design consultants, this provision offers reassurance that PLAs will not become a barrier to participation. Instead, they will be evaluated only when warranted by a project’s complexity, workforce demands, and potential for labor disruption. 
 
A Transparent, Accountable Process 
The CTB’s process is built on transparency and accountability. Once a PLA request is submitted, the Commissioner of Highways or Director of DRPT must review the request for completeness within 60 days. The CTB must then act on it within two regular monthly meetings. 

Projects approved for PLA use will also face annual reporting requirements, including data on total costs, workforce participation (including the number of Virginia residents employed), change orders, and any labor disruptions. This ensures a full record of performance and accountability—information that will be made public on the CTB’s website. 
 
Why This Matters for Industry Partners 
For highway contractors and design consultants, this balanced policy means predictability and fairness. It avoids one-size-fits-all mandates while still allowing project sponsors to use PLAs when there is clear evidence that they will improve outcomes. 

Equally important, the CTB’s framework ensures that future PLA decisions will be based on data and performance, not politics. Every project will be judged on its own merits, its benefits to the traveling public, and its consistency with Virginia’s competitive contracting environment. 

As the transportation construction industry continues to face challenges such as workforce shortages, material costs, and schedule pressures, this policy offers an evidence-based pathway for determining whether a PLA can help deliver better results for taxpayers. 

VTCA supports this balanced and transparent approach, which keeps the door open for innovation while maintaining fairness, open competition, and accountability. 
 
Key Takeaways for Contractors and Design Consultants 

• PLAs Are Optional – Not Mandated. 
  The CTB’s new policy does not require Project Labor Agreements (PLAs) on any project. Their use must be justified on a case-by-case basis. 
• Evidence-Based Approval. 
  A PLA can only be used if an Independent Third-Party evaluation demonstrates clear and measurable benefits - including cost savings, efficiency gains, safety improvements, or reduced labor risk. 
• Right to Work Protected. 
  The CTB reaffirmed that Virginia’s Right to Work law remains fully in effect. No worker can be denied employment based on union or non-union status. 
• Transparency and Accountability. 
  All approved PLA projects will require annual reporting on costs, workforce participation, labor disruptions, and schedule performance – ensuring public visibility and industry oversight. 
• Fairness and Competition Preserved. 
  The policy ensures that Virginia-based firms – large and small, union and open-shop alike – maintain equal opportunity to compete for transportation projects. 
• Partnership Opportunity. 
  Contractors, design consultants, and local sponsors can work with VDOT and DRPT to evaluate when a PLA might add value – especially for complex, multi-trade, or labor-intensive projects.