ATHENS, Ohio -- An agreement to withhold more than $2.35 million from a contractor charged with prevailing wage violations was agreed to Friday afternoon (Aug. 10).
The agreement between the Ohio Department of Commerce, Carpenters' Union, Housing for Ohio, Ambling Companies and Rea Contractors, Inc. resolves two pending motions to stop work on University Courtyard, an apartment complex being built for Ohio university upper class, graduate, and medical students. It will supplant a hearing on the motions previously scheduled for Tuesday and Wednesday, Aug. 14 and 15.
According to the agreement, $2.35 million will be held as a reasonable escrowed reserve to pay back wages, penalties, and costs associated with the failure of at least six subcontractors to pay prevailing wages as required by Ohio law.
The subcontractors included are L&L Framing of Pensacola, Florida; Los Compos, Inc. of Youngsville, North Carolina; Workman and Son's Plumbing of Ashland, Kentucky; Randell Electrical Contractor, Inc., of Winter Park Florida; Davis Mechanical of Waco Texas; and BR Brick and Masonry of Conroe, Texas.
The six subcontractors were hired by Rea Contractors, Inc., general contractor for the project, and were responsible for providing the framing, drywall installation, plumbing, electrical, HVAC and masonry work, respectively.
The entry also covers 35 other subcontractors who appear to be in compliance with prevailing wage laws.
To date, Housing For Ohio has withheld $2,081, 70.11 from Rea Contractors for their failure to adequately document payroll records. An additional $139,029.68 has also been withheld from pay requests and added to the reserve account.
Rea Contractors, Inc. and Ambling Companies have also agreed to release subcontractors working on the project and replace them with laborers supervised by a regional union contractor. JD&E, Inc. of Wheeling, West Virginia will begin assisting Rea Contractors, Inc. next week to complete the project.
Presently, three of five of the buildings are nearly ready for the nearly 200 tenants with signed leases, according to Ambling.
