Court Grants Preliminary Injunction in PLA Case Representing ABC Keystone

MANHEIM, PA., JULY 2 — McNees Wallace & Nurick successfully secured a preliminary injunction on behalf of the Associated Builders and Contractors, Inc., Keystone Chapter (ABC Keystone), in a legal challenge to the Pennsylvania Department of General Services’ (DGS) use of a Project Labor Agreement (PLA) on a major state construction project.

The ruling, issued June 26, 2025, in Associated Builders and Contractors, Inc., Keystone Chapter v. Department of General Services, et al., Docket No. 189 M.D. 2025, halts enforcement of a mandatory PLA that would have required contractors and subcontractors to agree to union only labor terms in order to bid on the Pennsylvania Joint Laboratory Facility project. The project, a 300,000 square foot, multiagency laboratory, is planned for Susquehanna Township, Dauphin County.

ABC filed the petition on behalf of its members, many of whom are non-union contractors, arguing that the PLA unlawfully excluded them from fairly competing for state-funded work. After an evidentiary hearing, the Court concluded that, at this stage, ABC had demonstrated a likelihood of success on the merits and that the PLA imposed conditions that may violate Pennsylvania’s competitive bidding laws. The Court also concluded that the Department of General Services’ justification for the PLA lacked credibility and did not establish the extraordinary circumstances required for such agreements.

The McNees litigation team, led by attorneys Veronica Morrison and Ashley Nichols Weber, with support from Caitlyn Bechta and Jim Kutz, developed the legal strategy, presented witness testimony, and argued the case in court. The injunction preserves ABC members’ ability to compete for public construction projects without being compelled to sign a PLA.

“This is a meaningful step for our client and an important affirmation of the principles of fair and open competition in public contracting,” said Attorney Morrison.

“ABC Keystone is very pleased with the court’s decision to grant a preliminary injunction,” said Dave Sload, President-CEO of ABC Keystone. “The McNees team did an outstanding job demonstrating how the PLA violated the principles of fair, open, and non-discriminatory competition. We look forward to their continued representation as the case moves toward a final resolution.”

McNees will continue to represent ABC Keystone as the case proceeds toward a final ruling.