[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR5.108]



[Page 42-43]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 5_GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS--Table of Contents

 

  Subpart A_Generally Applicable Definitions and Federal Requirements; 

                                 Waivers

 

Sec.  5.108  Preservation of Open Competition and Government Neutrality 

Towards Government Contractors' Labor Relations on Federally Funded 

Construction Projects.



    (a) Purpose. This section implements Executive Order 13202 (issued 

on February 17, 2001), as amended by Executive Order 13208 (issued on 

April 6, 2001), entitled ``Preservation of Open Competition and 

Government Neutrality Towards Government Contractors' Labor Relations on 

Federal and Federally Funded Construction Projects.''

    (b) Definitions. For purposes of this section:

    Construction contract means a contract for the construction, 

rehabilitation, alteration, conversion, extension, or repair of 

buildings, highways, or other improvements to real property, including 

any subcontracts awarded pursuant to such a contract.

    Financial assistance includes:

    (i) Grants, loans, and advances of federal funds; or

    (ii) Proceeds from loans guaranteed under section 108 of the Housing 

and Community Development Act of 1974, as amended (42 U.S.C. 5301 et 

seq.) and title VI of the Native American Housing Assistance and Self-

Determination



[[Page 43]]



Act of 1996 (25 U.S.C. 4101 et seq.). The term ``financial assistance'' 

does not include any other contract of insurance or guaranty.

    Labor organization has the same meaning it has in 42 U.S.C. 

2000e(d).

    (c) Neutrality towards government contractors' labor relations. To 

the extent permitted by law, the bid specifications, project agreements, 

or other controlling documents for a construction contract awarded on or 

after June 23, 2003, by a HUD grantee, recipient of financial assistance 

from HUD, or party to a cooperative agreement with HUD, for a 

construction project (or a construction manager acting on their behalf) 

shall not:

    (1) Require or prohibit bidders, offerors, contractors, or 

subcontractors to enter into or adhere to agreements with one or more 

labor organizations on the same or other related federally funded 

construction project; or

    (2) Otherwise discriminate against bidders, offerors, contractors, 

or subcontractors for becoming or refusing to become or remain 

signatories, or otherwise adhere to agreements with one or more labor 

organizations, on the same or other related federally funded 

construction project.

    (d) Exemptions--(1) Exemptions due to special circumstances. HUD may 

exempt a particular construction project, construction contract, 

subcontract, grant, or cooperative agreement from any requirement of 

this section, if HUD determines that special circumstances require an 

exemption in order to avert an imminent threat to public health or 

safety or to serve the national security. HUD will not base a finding of 

``special circumstances'' on the possibility or presence of a labor 

dispute concerning the use of contractors or subcontractors who are non-

signatories to, or otherwise do not adhere to, agreements with one or 

more labor organizations, or concerning employees on the construction 

project who are not members of, or affiliated with, a labor 

organization.

    (2) Exemption of construction projects subject to project labor 

agreements entered into as of June 23, 2003. HUD may exempt a particular 

construction project from any requirement of this section upon written 

request from the HUD grantee, recipient of financial assistance from 

HUD, or party to a cooperative agreement with HUD (or a construction 

manager acting on their behalf), if HUD determines that:

    (i) The HUD grantee, recipient of financial assistance from HUD, or 

party to the cooperative agreement with HUD (or a construction manager 

acting on their behalf) issued, or was a party to, as of June 23, 2003, 

bid specifications, project agreements, agreements with one or more 

labor organizations, or other controlling documents with respect to a 

particular construction project, that contain any of the requirements or 

prohibitions contained in paragraph (c) of this section; and

    (ii) One or more construction contracts subject to such requirements 

or prohibitions was awarded as of June 23, 2003.

    (e) Sanctions. If HUD determines that a HUD grantee, recipient of 

financial assistance from HUD, or party to a cooperative agreement with 

HUD (or a construction manager acting on their behalf) performs in a 

manner contrary to the requirements of this section, HUD will take such 

action, consistent with law and regulations, as HUD determines 

appropriate.

    (f) Voluntarily entering into project labor agreements. Nothing in 

this section prohibits contractors or subcontractors from voluntarily 

entering into project labor agreements.



[68 FR 28104, May 22, 2003]