WHEELING - The potential use of non-union labor led to the rebidding of a $10 million Ohio County Schools building project, the contractor who submitted the initial low bid is claiming.
"In my opinion, (school officials) caved to pressure from the unions," said John O'Brien, vice president of the Landau Building Co. of Wexford, Pa.
But Ohio County Schools Superintendent George Krelis denies that local union leaders forced the rebidding of construction for the J.B. Chambers Performing Arts Center at Wheeling Park High School. The school district now will bid the arts center as two separate projects - one for the facility construction as a whole, and a second for its theatrical components.
"No, absolutely not," Krelis said of the assertion that union pressures forced the school district's decision. "In our opinion, breaking the project into two sub-sections was better for us. That was our decision."
Delegate Orphy Klempa, D-Ohio, in his role as co-chairman of Project BEST, which represents the interests of local trades groups, also denied the organization played any role in Ohio County Schools' decision.
But Klempa acknowledged knowing that Landau planned to use a non-union electrical subcontractor on the project, and to calling the company to check on the issue.
Klempa commended school officials for their "due diligence" on the issue, and their intent to get more for the money.
"It's been so long since something like this happened, I don't know what our normal course of action is," he said.
"Me personally, I've always been focused on the local worker aspect. I always focus on the people, and look out for the people who live in the community, make a living there and support the quality of life."
Non-Union Contractor
in the Mix
Landau submitted the lowest bid of $8.42 million among six general construction bids opened Sept. 22, according to O'Brien.
The company then had two hours to provide the West Virginia School Building Authority with a list of subcontractors they would use on the project.
That list noted that electrical work on the site would be provided by Veltri Electric of Washington, Pa., a non-union subcontractor who would be paid $1.3 million for the job, O'Brien said. He noted the price charged by Veltri was $300,000 less than that proposed to him by the cheapest union subcontractor, ACJ Electric of Rayland, Ohio.
In West Virginia, contractors who work on publicly funded projects - whether union or non-union - are required to pay prevailing wage rates, as set by the state Department of Labor.
The SBA deemed Veltri qualified for the work, but O'Brien said he immediately began to get calls from Ohio County school officials. They asked him if he could instead use a different union contractor for the work.
"I told them I was unwilling to do that - unless they wanted to pay the extra $300,000," O'Brien said.
He noted his company "is sensitive" to the importance in the Ohio Valley of using union labor.
As such, O'Brien said he offered a compromise to Ohio County school officials by which he would allow Veltri to continue with electrical work within the new building, and then a union subcontractor would be brought in to do "site work" and place electrical lines underground on the property.
School officials didn't agree to this, he said.
"A lot of West Virginia school work is done by non-union contractors," O'Brien said. "Not most, but a lot of it."
The move to rebid the Ohio County project should delay construction of the performing arts center by about six weeks, school officials said. McKinley and Associates, architects for the project, are to have revised bid packages available within a month.
O'Brien said he will rebid the project for Ohio County Schools.
"It will be interesting to see how it goes," he noted.
Use of Non-Union and Out-of-State Contractors in West Virginia
The bids reviewed by the state School Building Authority revealed that the three lowest bids on the Ohio County Schools project came from Western Pennsylvania firms - Landau, at $8.42 million; Nello Construction of Canonsburg, Pa., at $8.6 million; and Tedco Construction of Bridgeville, Pa, at $8.8 million.
Also submitting proposals were local firms JD&E Construction of Wheeling at $8.95 million; Grae-Con Construction of Steuben-ville at $9 million; and Colaianni Constriction of Dillonvale at $9.2 million.
Mark Manchin, executive director of the School Building Authority, said the authority approved of Landau and its subcontractors but that the SBA allows county school boards to make their owns decision regarding the use of contractors.
"In the interim period, we have spoken with Mr. Krelis and (Deputy Superintendent Dianna Vargo), and we recognize their desire to do even better - and at the end of the day, save taxpayers money," he said. "They thought they could do better, and we concurred.
"The problem with subcontractors is not on our end. They thought if they did the bids separately, the bids would be even lower. It's all about funds."
Manchin noted that Ohio County Schools is contributing at least half of the money needed for the $10 million J.B. Chambers Performing Arts Center. The SBA, meanwhile, provided a $5 million matching grant for the project.
"On our end, we watch out for the state taxpayers' money," he said.
The $10 million project includes the center itself and also work to re-route part of Park Road near the high school, which already has been completed.
Manchin agreed that it's not all that uncommon for non-union contractors to do work on school facilities.
"It's all about low bidders, regardless of whether the low bidder is union or non-union," he continued. "There are two critical components we look at - whether they will pay prevailing wage, and who is the low bidder.
"We are advocates for union and West Virginian work, but it doesn't become an overriding factor in our discussions. Non-union contractors have the same rights and privileges of the union contractor."
Manchin did note the SBA prefers that state contractors be used on school projects.
"We want to see West Virginia contractors working here," he said.