Maryland Board Invalidates Toll Road Labor Mandate

The state board ruled that a mandatory project labor agreement improperly limited competition for a highway ramp construction project.

Updated on Oct. 24, 2026 in Unions

Isometric editorial illustration of a heavy-duty steel I-beam resting on gravel, symbolizing the structural nature of public construction contracts. — The Maryland State Board of Contract Appeals struck down a labor mandate for the I-95/I-695 Interchange project, citing insufficient justification for the agreement. AI Illustration. Upload story photo >

Live Poll

Should government agencies require contractors to hire union labor for public infrastructure projects?

The Maryland State Board of Contract Appeals has invalidated a requirement for a Project Labor Agreement on the I-95/I-695 Interchange Express Toll Lanes project. The board found that the Maryland Transportation Authority failed to provide the necessary written justifications for the mandate as required by a 2024 executive order.

Why it matters

The board determined that the mandate restricted competition and unfairly favored union contractors, ultimately increasing costs to the state. Officials ruled that the authority did not meet legal requirements to demonstrate public benefits for the labor agreement.

The solicitation mandated that non-union contractors source 70% of the project's labor pool through union halls, leaving only 30% for their own staff. The board concluded this restriction violated state procurement regulations and inflated projected bid prices.

The players

Maryland State Board of Contract Appeals

This is an independent administrative body that resolves contract disputes between state agencies and contractors.

Maryland Transportation Authority

This state agency is responsible for the construction, management, and operation of toll facilities in Maryland.

Allan Myers MD Inc.

This company is a regional construction firm that successfully challenged the mandatory labor agreement in the bidding process.

Wes Moore

He is the Governor of Maryland who issued the 2024 executive order regarding project labor agreements.

The details

Allan Myers MD Inc. successfully challenged the mandate by filing a pre-bid protest. Following a two-day merits hearing, the board determined that the transportation authority failed to produce the written findings mandated by Governor Wes Moore's 2024 executive order.

Governor Wes Moore issued an executive order in 2024 regarding project labor agreements.
The Maryland State Board of Contract Appeals issued its formal opinion on October 23, 2026.

Political Context

The board ruled that the authority failed to meet the justification standards set by Governor Wes Moore's 2024 executive order on Project Labor Agreements. This decision highlights the friction between state-level labor policy mandates and established procurement regulations regarding competitive bidding.

This ruling impacts taxpayers by potentially lowering the final bid prices for the I-95/I-695 interchange construction project. It also provides a legal precedent for contractors in Maryland to challenge similar labor requirements that may limit their ability to use existing workforces.

The takeaway

This decision reinforces the importance of state agencies providing transparent, written justifications for procurement policies that alter competitive labor dynamics. It signals that executive orders must still comply with existing state procurement laws designed to protect fair bidding practices.