McNees obtains preliminary injunction in PLA case for ABC Keystone and ABC Eastern
July 29, 2026
Press Releases
McNees Wallace & Nurick represented the Eastern and Keystone Chapters of Associated Builders and Contractors, Inc. (collectively, ABC) in obtaining a preliminary injunction against the Pennsylvania Department of General Services relating to its use of a project labor agreement (PLA) for the construction of a new psychiatric treatment center at Norristown State Hospital in Montgomery County.
ABC is a trade organization that represents many non-union contractors. It filed suit before the Commonwealth Court seeking to halt enforcement of a mandatory PLA that required contractors and subcontractors to agree to union labor provisions when bidding on and performing work for the project.
The project includes construction of a new 452,592-square-foot psychiatric treatment center and a separate central utility plant with an estimated cost exceeding $300 million.
As it has in previous cases, ABC argued that the inclusion of the PLA unlawfully excluded its members from fairly competing for state-funded work and violated Pennsylvania’s competitive bidding laws, which are intended to ensure open and fair competition in government contracting.
“The Court’s decision recognizes that there are substantial legal questions surrounding the use of project labor agreements in public procurements and reinforces the courts’ commitment to protecting fair and open competition for Pennsylvania’s workforce,” said Veronica Morrison, who led the McNees litigation team alongside Ashley Nichols Weber.
Following an evidentiary hearing on July 1, 2026, the Commonwealth Court concluded that ABC demonstrated a likelihood of success on the merits of its claims and satisfied the requirements for preliminary injunctive relief. In its July 23, 2026, opinion, the Court determined that the use of the PLA for this project may violate Pennsylvania’s competitive bidding laws and granted ABC’s motion for a preliminary injunction. As a result, DGS is prohibited from proceeding with the project’s procurement until the litigation is resolved.
“This preliminary injunction preserves our clients’ opportunity to challenge the inclusion of the PLA on the project before any bids are opened and ensures these important issues receive full judicial review,” Nichols said.
The case is Associated Builders and Contractors, Inc., Keystone Chapter, et al. v. Commonwealth of Pennsylvania Department of General Services, et al., No. 244 M.D. 2026 (Pa. Commw. Ct. July 23, 2026).
If you have questions about project labor agreements, public construction projects, competitive bidding requirements, or other government procurement issues, contact a member of McNees’ Construction Group.
