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Butler Balancing Co., Inc. v. Dept. of Labor & Industry, Prevailing Wage Appeals Board

Work performed by employees of a subcontractor working on the Chester County Government Services Center, which was a public work subject to the Prevailing Wage Act (PWA), was subject to the PWAs requirements for sheet metal workers, requiring the subcontractor to pay those employees the prevailing wage for sheet metal workers.

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Argued: June 6, 2001

Butler Balancing Company, Inc. (Butler) appeals from an October 3, 2000 order of the Department of Labor and Industry, Prevailing Wage Appeals Board (PWAB) granting the exceptions of Intervenor Sheet Metal Workers International Association Local No. 19 (Union) to the Hearing Examiner’s Proposed Report and sustaining the Union’s grievance.

The grievance at issue here arises out of work done in autumn 1992/winter 1993 on a new Chester County Government Services Center (Project). The Project itself was a “public work” subject to the Prevailing Wage Act (PWA). *fn1 On October 24, 1991, the County of Chester (County) entered into a “Trade Contract” with the Farfield Company (Farfield), retaining Farfield to perform the Project’s mechanical work, which included installation of the heating, ventilating and air conditioning (environmental or HVAC) systems. (See Stipulation of Facts, Nos. 1, 3.) In turn, on November 12, 1991, the mechanical contractor, Farfield, engaged Butler, *fn2 a corporation in the business of testing and balancing air and water systems, as a subcontractor to perform testing, adjusting and balancing work (TAB work) for the HVAC systems at the Project. (See Stipulation of Facts, Nos. 12, 33.) The specifications for the Project’s TAB work were similar to those found in bid and construction documents for most new buildings. (See Stipulation of Facts, No. 23.) Pursuant to the subcontract, Butler intermittently engaged in onsite work at the Project between September of 1992 and April of 1994, doing TAB work for approximately twenty-six air-handling and exhaust systems that had been installed by Farfield and other subcontractors. (Stipulation of Facts, Nos. 34, 36.) TAB work on HVAC systems is an integral part of the construction of a new office building such as the Project; in fact, buildings are not turned over to the owners for occupancy until the testing, adjusting and balancing of the building’s environmental systems are complete and their proper operation assured. (See Stipulation of Facts, Nos. 23, 25.)

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